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Flexible Spending Accounts Program
Health Benefits Buy-Out > Plan Details

The MSC Health Benefits Buy-Out Waiver Program allows eligible employees who can obtain non-City group health benefits to waive their New York City health benefits in return for an annual cash incentive payment.

This incentive payment is considered ordinary income and, therefore, is taxable to the recipient. Annual amount of incentive payment:

  • $1,000 to employees with family coverage who waive City health benefits
  • $500 to employees with individual coverage who waive City health benefits
Incentive Benefit Periods
There are two incentive benefit periods per calendar year:
  • January 1 through June 30
  • July 1 through December 31
Incentive payments will be made in June and December of the Plan Year. Therefore, if you are eligible to receive a $1,000 incentive payment, you will receive two payments of $500 each in your regular paycheck with the first payment issued in June and the second payment issued in December. Incentive payments will not be retroactive to a prior Plan Year.

Welfare Fund Benefits
Your Welfare Fund benefits may be affected by waiving your health benefits. Contact your Welfare Fund Administrator directly if you have questions concerning your benefits.

See the Health Benefits Buy-Out Waiver Program FAQ

Employee Assistance Programs (EAPs)
EAPs are staffed by professional counselors who can help employees and their eligible dependents handle problems in areas such as stress, alcoholism, drug abuse, mental health, and family difficulties.

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