Tax Saver Benefit Plan (TSB)
Options During a Leave of Absence

The IU Tax Saver Benefit (TSB) Plan is designed to save tax dollars when the participating employee pays for certain IRS-eligible expenses. Because of these substantial savings, the TSB benefit may be one that an employee would want to continue while on an approved leave of absence.

Employees on leave with pay will continue to have TSB deductions taken, and any claims incurred during the leave will be eligible for reimbursements. Pre-tax benefit plan premiums will also continue to be taken. However, employees on leave without pay must continue benefit plan contributions on an after-tax basis in order to continue coverage. And, with respect to reimbursement accounts, the employee must select from one of the following options:

Option 1 - Termination of Participation
A leave of absence is generally an IRS-qualified change-in-status event that allows employees to end participation in the TSB plan for the rest of the tax year. When this option is chosen, no more contributions to the plan are required; however, claims for services provided both while on leave and after returning to work will not be eligible for reimbursement from the account.

Option 2 - Suspension of Participation
An employee may suspend participation in the TSB plan while on leave. If this option is chosen, no contributions are made to the plan during the leave and claims during the leave are not eligible for TSB reimbursement.

Upon return to work, contributions will be due again, and claims for services provided after the return to work are eligible for reimbursements. Contributions may either be the same per-pay contribution as before the leave (the annual pledge will be reduced accordingly), or the per-pay contribution may be increased so that the original annual election will remain the same.

Option 3 - Continuation of Participation
When an employee elects to continue coverage during a leave, the full amount of the remaining portion of the annual election will be available during the leave. To continue participation, ongoing payments are required on an after-tax basis. Payments must be made monthly. If contributions are not made, the account will be terminated and claims for services received after the date of termination will not be eligible for reimbursement from the account.

Employees on leave without pay for over 60 days will receive a billing notice listing these options. If an employee has a TSB Health Care Reimbursement account and/or a TSB Dependent Care Reimbursement account, an election form will need to be filled out for each TSB benefit and returned to the address indicated. For further information employees should contact University Human Resource Services to discuss coverage and payment options.

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