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This message is intended for UNC-Chapel Hill benefit-eligible employees. With the new year here, it’s important to review some timely benefit news and information.

STATE HEALTH PLAN OPEN ENROLLMENT

  • Any benefit election you made during Open Enrollment for the State Health Plan takes effect on January 1, 2021. Remember to review your most recent paycheck to ensure that the plan you elected is reflected with the corresponding deductions. Deductions for health care are withheld one month in advance of the coverage effective date (December deductions pay for January coverage).
  • If you elected a new medical plan or made any changes to your coverage level, you will receive a new State Health Plan ID card.

NCFLEX AND UNIVERSITY BENEFITS

  • Any benefit elections you made during annual enrollment for NCFlex and the University benefit programs take effect January 1, 2021. Remember to review your paycheck (Jan. 15, 2021 for biweekly paid employees and Jan. 29, 2021 for monthly paid employees) to ensure that the programs you elected are reflected with the corresponding deductions.
  • Please read the information pertaining to the specific plans listed in this update as it may impact your paycheck if you are enrolled in the benefit program referenced.

Group Term Life Insurance (VOYA)

  • If you are enrolled in this NCFlex plan through Voya Financial, you may see a change in your deduction beginning with your January paycheck. Adjustments to your premium are made based on your age and salary as of January 1, 2021.

Critical Illness (Allstate)

If you are enrolled in this NCFlex plan through Allstate Benefits, you may see a change in your deduction beginning with your January paycheck. Adjustments to your premium are made based on your age and salary as of January 1, 2021.

Health Care Flexible Spending Account (FSA)

  • If you are enrolled in the Health Care FSA for 2020, eligible health care expenses must be incurred by December 31, 2020. You have until April 30, 2021, to submit 2020 claims for reimbursement. You can rollover up to $550 of your unused account balance into 2021, as long as you have a minimum balance of at least $25. Any funds exceeding this amount will be forfeited. The rollover will not count toward the 2021 maximum election amount (currently $2,750 for 2021). This rollover feature only applies to the Health Care FSA.
  • If you enrolled in the Health Care FSA for 2021, eligible health care expenses must be incurred January 1 through December 31, 2021, to be eligible for reimbursement. You have until March 31, 2022, to submit claims for reimbursement. You can rollover up to $550 of unused account balances into the next plan year, as long as you have a minimum balance of at least $25. Any funds exceeding this amount will be forfeited. The rollover will not count toward the following year’s maximum election amount (currently $2,750 for 2021). This rollover feature only applies to the Health Care FSA.

Dependent Day Care Flexible Spending Account (FSA)

  • If you are enrolled in the Dependent Day Care FSA for 2020, eligible dependent day care expenses must be incurred by March 15, 2021 provided you remain actively employed through December 31, 2020. You have until April 30, 2021 to submit 2020 claims for reimbursement. Any unused funds will be forfeited.
  • If you enrolled in the Dependent Day Care FSA for 2021, eligible dependent day care expenses must be incurred January 1, 2021, through March 15, 2022, to be eligible for reimbursement. You have until March 31, 2022 to submit claims for reimbursement. Any unused funds will be forfeited.

RETIREMENT PLAN LIMITS FOR 2021

Retirement contribution limits will remain the same as they were in 2020.

  • The limit on contributions to a 403(b)/401(k) plan for 2021 is $19,500. If you are over the age of 50, or will turn 50 by Dec. 31, 2021, you are eligible for an additional $6,500 catch-up contribution.
  • The limit on contributions to a 457(b) plan for 2021 is also $19,500. If you are over the age of 50, or will turn 50 by Dec. 31, 2021, you are eligible for an additional $6,500 catch-up contribution.
  • Employee contributions to a 403(b) and 401(k) plan are combined together when determining your maximum contribution; however, employees can maximize saving opportunities by contributing to a 457(b) plan. Amounts contributed to a 457(b) plan are not combined with your 403(b) and/or 401(k) contributions when determining your maximum contribution limit.

FORM 1095-C

Under the Affordable Care Act (ACA), you are required to indicate if you have qualifying medical coverage when you complete your tax return. You will receive a Form 1095-C which includes information about the health coverage offered to you by the University. The form will be mailed to your home address at the end of January. You will not need to attach or file your Form 1095-C with your 2020 Federal income tax return; however, you may need to use its information when you complete your tax return.

QUESTIONS?

Please contact UNC-Chapel Hill’s Benefits and Leave Administration Support Center at 919-962-3071 or send an email to benefits@unc.edu if you need assistance or have questions about the benefit plans you have enrolled in.

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