If you elect to pay for coverage on a pre-tax basis, the IRS restricts when pre-tax contributions may begin.  Therefore, the required contributions for coverage you elect to purchase with pre-tax dollars will be deducted as follows:

• For initial elections made within 30 days of your date of hire, the pre-tax deductions will begin on the payroll following the date your election is processed.  Any payments due for coverage from the date your coverage is effective until the date pre-tax deductions begin will be deducted on an after-tax basis.

• For elections made within 30 days of a Qualifying Life Event other than the birth, adoption or placement for adoption of a child, the pre-tax deductions will begin on the payroll following the date your election is processed.  Any payments due for coverage from the date of the Qualifying Life Event until the date pre-tax deductions begin will be deducted on an after-tax basis.

• For elections made within 30 days of the birth, adoption or placement for adoption of a child, all payments required for coverage from the date of such event will be deducted on a pre-tax basis.

Before-Tax or After-Tax? Before-tax contributions offer special tax advantages.  You do not pay federal, Medicare, Social Security and, in most cases, state or local income taxes on the before-tax Pay you use for buying medical or dental coverage or for participating in the flexible spending accounts.  This is also true for before-tax Savings Program contributions, except Medicare and Social Security taxes will apply. Even though before-tax contributions reduce your Pay for income tax purposes, the Company will continue to recognize your full basic rate of Pay for your other Pay-related benefits, such as life insurance, disability coverage and pension benefits.