NPMHU: The month of November presents several financial opportunities for all mail handlers.

 First, the Open Season for the Federal Employees Health Benefits Program (FEHBP) is scheduled for November 13 through December 11, 2006.  As this issue of the Mail Handler UPDATE was going to press, the NPMHU National Union was advised that, because of delays in the printing and distribution of FEHBP open season materials, the open season for USPS employees has been extended until 5:00 p.m. Central Time (CT) on December 29, 2006. (Please note that this notice does not affect the open season dates for FEDVIP enrollment.)  During this open season, employees may make any one, or a combination of, the following changes to their health insurance:  enroll if not enrolled; cancel enrollment; change from one plan to another or from one option to another; change from Self to Self and Family, or from Self and Family to Self; and change from pre-tax to post-tax payment of health insurance premiums, or vice versa.  All of these open season changes may be made using PostalEase, and would be effective starting on January 6, 2007.

Also available this year - to all mail handlers, as well as all other federal and postal employees - are supplemental dental and vision insurance programs.  Starting this year, mail handlers can choose among plans sponsored by the Office of Personnel Management through the new Federal Employees Dental and Vision Insurance Program.  These plans are optional, with all premiums paid by the employee without any subsidy from the Postal Service.  Questions can be addressed to the customer service representatives at 1-877-888-3337.  Supplemental dental and vision plans also are sponsored by the Mail Handlers Benefit Plan and Coventry/First Health, and may be used by mail handlers who are members of the NPMHU even if they do not enroll in health insurance sponsored by the MHBP.  More information on the MHBP supplemental plans is available at the MHBP website, www.mhbp.com, or at 1-800-254-0227.

Second, similar but lengthier open season dates (November 13 through December 31) are applicable for mail handlers who seek to participate during 2007 in one or both Flexible Spending Accounts.  FSAs allow employees to set aside a portion of their pre-tax earnings for certain types of out-of-pocket health care expenses and dependent care expenses that may be incurred during the 14-1/2 month period running from January 1, 2007 through March 15, 2008.  (Mail handlers with current FSAs for 2006 have until March 15, 2007 to fully use the moneys in their accounts from 2006.)  FSAs are an excellent opportunity for all mail handlers to save money for health care and dependent care, and all members are urged to investigate this program if you expect to have eligible expenses in these areas. 

If you don’t have an FSA, try one next year.  Start small, if you like. But you can put up to $5,000 into a Health Care FSA and/or up to another $5,000 per family into a Dependent Care FSA.  Using the FSA Program can give you significant tax savings.  In basic terms, the FSA gives you a percentage discount (depending on your tax rate) on all of your out-of-pocket health care costs, such as braces, eyeglasses, hearing aids, deductibles, co-payments, drugs (including prescription and over-the-counter medication), and other expenses not covered by health insurance.  The same is true for your dependent care costs, which can include day care at a center or from a private sitter, late pickup fees from child care, nursery school, and summer day camp, or adult day care for an elderly parent.

The amount of money you put into an FSA is entirely up to you.  Be advised, however, that you must utilize all of the funds in your FSA, or you lose that money under rules adopted by the Internal Revenue Service.  Also remember that you have additional time after December 31 of each year (until March 15 of the following year) before any unspent money in an FSA would be lost.  Complete your enrollment through PostalEase at 1-877-4PS-EASE; questions should be directed to the FSA Customer Service Center at 1-800-842-2026.

Third, eligible employees may use the Annual Leave Exchange Option to receive a lump-sum payment in their paychecks dated January 26, 2007 in exchange for a portion of the annual leave that otherwise would be advanced to them at the beginning of the 2007 leave year.  To be eligible, mail handlers must have an annual leave balance of 440 hours at the end of the 2006 leave year and have used less than 75 hours of sick leave during the 2006 leave year.  Mail handlers who meet the eligibility criteria and want to exercise this option must use PostalEase to make elections no later than December 15, 2006.

Mail handlers who would like additional information about any of these programs are urged to use the resources listed in this article. Click for PDF version