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With a new child in the house, you may want to evaluate your benefit options
to make sure they are in alignment with your new family status. This overview is
designed to highlight those options. Additional information is available on the
Benefits Web Site or from the Human Resource Information Center (HRIC) at 684-5600.
Whose health insurance policy will cover the child?
Beyond comparing premium and other cost differences in choosing whose
health insurance plan will cover the baby, consider the following:
- Which plans your selected pediatrician participates in
- Whether the non-Duke policy provides pre- and post-natal obstetrical care,
well-baby and well-child care and routine immunizations
- How deductibles and copayments, including those for prescriptions, compare
with the Duke policy
When should I add the baby to my coverage? Can I enroll in coverage?
You can decide to add yourself and the newborn child to your Duke policy. You
must enroll with the HRIC within 30 days of the date of birth. The
effective date of coverage and the change in coverage (i.e., from parent/child
to parent/children or individual to parent/child) will be effective the first of
the month in which the child was born.
Do I need to increase the amount of my life insurance coverage?
Employees with young families and with high long term debt, such as a
mortgage, may need more life insurance to provide financial security for
surviving family members than employees with grown children and less long term
debt. If you divide the amount of your current life insurance coverage by your
take-home pay, you will know how many pay periods your present level of earnings
would continue to support your household. If this figure is not sufficient in
dollar amount or duration to support your household, you may wish to increase
your life insurance coverage. If you determine that you need to increase your
coverage, there are a number of life insurance options available. For example,
with Personal Accident (AD&D) Insurance you can purchase a high coverage amount
at a low cost, but benefits will only be paid in the event of accidental death.
You can also purchase Supplemental Life insurance which will provide benefits in
the event of death from illness and natural causes. The premiums are higher for
Supplemental Life insurance than AD&D. For more information, please see the
Life Insurance Web Site.
Should I change my beneficiary designations?
You may want to consider changing your beneficiary designations under your
life insurance and retirement programs. The HRIC or specific program vendors can
provide assistance. Additionally, you may want to consider obtaining legal
counsel if you will be establishing or amending a trust fund or will.
What if I will be using day care or will have a predictable increase in my out-of-pocket medical expenses?
You should consider enrolling or increasing your deduction in your Duke
reimbursement accounts. Since account contributions are made with before-tax
dollars, reimbursement accounts provide ways to reduce your taxable income. The
amounts credited to your account are reimbursed to you when you submit a claim
for a qualified expense. The increase in your reimbursement account status or
enrollment in the program must be made within 30 days of the family status
change. Forms are available on the
Web Tools and Forms page.
For the Health Care Reimbursement Account, enrollment or changes must occur
within 30 days after the child is born or the employee returns to work. The
payroll deduction may continue and claims can be reimbursed even while a parent
is home with the new baby. For the Dependent Care Reimbursement Account,
enrollment or changes must occur within 30 days after the second parent has
returned to work or school full time. The IRS does not allow reimbursement for
expenses incurred while either parent is not actively at work. If you are
currently using the dependent care reimbursement program for another child,
please contact the HRIC to discuss having your deductions stopped while on leave
for the new baby as well as to restart the account once both parents are working
or attending school full time. Remember, the 30 day enrollment or change period
begins the date that the second parent returns to work. Your reimbursement
account contribution amount can only be changed if there is a subsequent change
in family circumstances or the amount of your daycare expense changes and the
change requested is consistent with that change. Additionally, any amount left
in the account at the end of the plan year is forfeited. For these reasons, you
may want to be conservative in estimating your anticipated expenses.
I have an existing Reimbursement Account. What do I need to know?
While you are on leave with the new baby, you can continue Duke payroll
deductions for your Health Care Reimbursement Account and continue to submit
claims for eligible expenses incurred. If you have a Dependent Day Care Account,
you should be aware that:
- The maximum annual amount you can deposit into the account is $5,000. The
$5,000 is a cumulative family maximum between both parents. There is also a
corresponding maximum deduction amount per paycheck.
- The IRS rules prohibit claiming reimbursement for any day care expenses
incurred while either spouse is not working. For example, if you have two
children and your older child is in day care while either you or your spouse
is on leave, the expenses incurred during this time frame for the older
child's day care expenses are not eligible for reimbursement since one
parent is not working or a full time student.
- If you will not be working during your leave, consider stopping your
deductions for your dependent day care account when you begin your leave.
Your deduction is not stopped automatically, please contact the HRIC for
assistance.
- You can restart the deduction by notifying the HRIC in writing within 30
days of the second parent's return to work.
I'm looking for day care providers. Can you provide referrals?
You can find a list of child care resources at the
Child and Family Benefits Web Site.
How will new payroll deductions impact my take home pay? What if I change my withholdings to reflect my new exemption?
You can use the Take Home Pay
Calculator available on the website to
determine how your paycheck will be affected by various payroll deduction and
tax exemption changes or to determine how your family's income would be
affected if one parent reduces work hours.
Applicable federal and state tax forms can be accessed from the
Web Tools and Forms page.
The "life event series" overview is intended to
highlight some of the benefit options to be considered due to a change in family
status. It is not designed to substitute for an official plan document. If there
is a conflict between this web site and the official plan documents, the official
plan documents will govern in all cases. Duke reserves the right to change or
terminate these plans or your eligibility for benefits under the plans at any
time.
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