LCC Faculty Colleagues,

Your LCCEA Bargaining Team has reached an agreement regarding College contributions to Section 125 medical reimbursement accounts, effective with the current open enrollment for the 2023 calendar year.  The deadline to enroll for 2023 is November 29, 2022.

As reported previously, IRS rules changed, which is why the parties negotiated over this issue at this time.

The complete agreement is here. You will also find a summary below.

For all faculty who participate in Sec. 125 medical reimbursement accounts, the $240 minimum faculty contribution per calendar year remains the same.

For faculty with employee-only insurance, the College will continue to contribute $450 per year to Sec. 125 for participating faculty members.

For faculty with employee plus partner/spouse or employee plus child(ren) insurance, College contributions and payments will be as follows.

1. For faculty contributing up to $500, the College will contribute $500, and faculty will also receive a stipend of $160.
2. For faculty contributing $501- $699.99, the College will match the faculty member’s contribution up to $699.99. In addition, the faculty member will receive a stipend, based on the formula: ($700 – faculty member’s contribution) divided by 1.25. For example, if a faculty member contributes $600, the stipend will be $80. (700-600)/1.25 = 80.
3. For faculty contributing $700 or more, the College will contribute $700.

For faculty with full family insurance, College contributions and payments will be as follows. 

1. For faculty contributing up to $500, the College will contribute $500, and faculty will also receive a stipend of $320.
2. For faculty contributing $501- $899.99, the College will match the faculty member’s contribution up to $899.99. In addition, the faculty member will receive a stipend, based on the formula: ($600 – faculty member’s contribution) divided by 1.25. For example, if a faculty member contributes $600, the stipend will be $240. (900-600)/1.25 =240.
3. For faculty contributing $900 or more, the College will contribute $900.

Open enrollment is taking place now for Section 125 accounts for the 2023 calendar year. Please see updates from HR for details or visit the HR website at: https://www.lanecc.edu/administration/human-resources/employee-benefits/section-125 

Also, please remember that any contributions to Section 125 accounts that are not used by March 15 of the subsequent year are forfeited, so it is important to keep that in mind when deciding the amount to contribute.

Your LCCEA Bargaining Team

Cynthia Campos

Adrienne Mitchell

Nancy Wood