Tax-Sheltered Annuity (TSA) 403(b)
Employees may contribute to tax-sheltered annuities through various vendors approved by the Commonwealth of Massachusetts. The seven providers available for the TSA 403(b) are:
- AIG Retirement
- Fidelity Investments
- ING Life Insurance and Annuity Company
- Lincoln Financial Group
Commonwealth's SMART Plan
The 457 Smart Plan is a deferred compensation plan to which employees can make pre-tax contributions invested in employee-selected investment options. For more detailed information on the Smart Plan, please visit the 457 Smart Plan page of the Mass. Dept. of Higher Education or Mass-Smart.
EE Series Savings Bonds are available for purchase through bi-weekly payroll deduction in values of $100, $200, $500 and/or $1000. Forms are available through the Payroll office. For more detailed information, please visit the EE Savings Bonds page of the Mass. Dept. of Higher Education website.
Massachusetts State Employee Credit Union
Massachusetts State Employee Credit Union is available for employees to contribute through payroll deductions or through the credit union. For more detailed information, please view the Credit Union page of the Mass. Dept. of Higher Education.
U. Plan 529 Plan
The U. Plan 529 Plan Prepaid Tuition Program allows employees to save for college through payroll deductions to a choice of 80 Massachusetts colleges and universities. For more information on the 529 Plan, please visit the U.Fund page on the Mass. Dept. of Higher Education website.
Pre-tax Flexible Spending Accounts
There are two types of Flexible Spending Accounts available to all active state employees which allows employees to pay for out-of-pocket medical expenses and/or qualified dependent care expenses on a pre-tax basis.
Employees may choose the Health Care Spending Account (HCSA) with an annual election of $500 to $5,000, which will be deducted from their paychecks on a pre-tax basis. All HCSA participants receive a free debit card from Benefit Strategies to conveniently pay for health care expenses out of their HCSA account. As the employee incurs health care expenses, a claim form and receipt must be submitted to Benefit Strategies. The reimbursement amount is posted to the employee’s direct deposit account or a check is mailed to the employee if the employee is not enrolled in direct deposit. As required by the IRS, please keep all copies of HCSA receipts with your tax documents. Visit the Massachusetts HCSA page for more information.
With the Dependent Care Assistance Program (DCAP), an employee may choose an annual election of up to $5,000 to pay for child care, after school programs or day camp for your dependent child under age 13 or adult dependent day care expenses on a pre-tax basis. As you incur expenses, submit a claim form and receipt to Benefit Strategies. They will deposit the reimbursement to your bank account. Information on this program is available on the DCAP page of the Massachusetts state website.
Open enrollment for the Group Insurance Commission's money-saving Flexible Spending Accounts (HCSA and DCAP) require an enrollment form to completed in November every calendar year for benefits to be effective January 1. Current participants MUST re-enroll annually to receive benefits in the following calendar year.