The Tax Advantage Premium Plan (TAPP) is technically called the California State University Premium Conversion Plan. TAPP allows you to pay required health plan premiums. All employees enrolled in a medical plan are enrolled in TAPP. Under TAPP, employee contributions toward medical plan premiums are deducted on a pre-tax basis. Any such premiums for the CSU sponsored coverage you have selected will be deducted each month from your salary before federal and state income and Social Security/Medicare taxes are calculated and deducted. This means you will not pay taxes on those premiums--they are converted to tax-free expenses.
You are eligible to participate in TAPP if you are an active CSU employee, enrolled in a CalPERS health plan.
If you are a new employee enrolling in health coverage, you will be enrolled in TAPP automatically. If you prefer to pay your premium from after-tax salary, you must notify Human Resources within 60 days of becoming eligible or during the open enrollment period.
Once your choice of pre-tax premium payment has become effective for the plan year, you can only make changes during the annual open enrollment period, unless you have a status change. The open enrollment period is every September - October for coverage effective January 1 through December 31 of the following year.
Allowable status change events include:
If your premium contributions change during the year, your TAPP deductions will be adjusted automatically for the change. Contributions will continue during any paid leave, but will stop if your leave is unpaid. If your unpaid leave qualifies for continuation of benefits under the Family and Medical Leave Act, you may continue your coverage during your leave on an after-tax basis. Please contact Human Resources for more information.
TAPP will have no impact on your CalPERS retirement nor on any other CSU-paid benefit. However, depending on your salary, your Social Security Benefits at retirement may be reduced slightly, because you will have Social Security taxes on a lower wage. Contact your local Social Security Office for more information.