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The employee contribution will be eligible for tax relief.
1, 2008, include eliminating the employee contribution of $150 per year and reducing the rate of reimbursing expenses to 80 per cent of eligible expenses--with 75 per cent to come from the employee account and 5 per cent from the general assets of the CEP.
Announces Corporate Donation and Employee Contribution Program
Even when health insurance is offered as a benefit, an increasing number of workers find the employee contribution prohibitive.
Nearly half of responding employers with 1,000-1,999 employees said they would raise employee contribution percentages in 2004, and 43 percent said they would shift more cost to employees by raising deductibles, co-payments/coinsurance or out-of-pocket maximums.
California's state-mandated disability program is causing many companies to set up self-insured alternatives as both the salary cap and employee contribution rate have increased in the last three years.
Participants do not pay social security tax but have contributed to the Board Plan at the same rate as CSRS participants over the years (except that the Board did not increase the employee contribution rate from 7.
The special limitation on matching contributions is satisfied if (a) matching contributions are not made with respect to elective deferrals or after-tax employee contributions in excess of six percent of compensation, (b) the matching contribution rate does not increase as the elective deferral or employee contribution rate increases, and (c) the rate of matching contributions for any HCE is not greater than the rate of matching contributions for any non-HCE.
The trustees recommended that the employee contribution rate remain the same.
As amended, the bill increases the state contribution to ensure that the employee contribution is equal for employees throughout the state.
Joe Haggerty, president of the United Way of Greater Los Angeles, said Arco has always been one of the nonprofit group's biggest supporters and had an active employee contribution plan.
However, all savings and thrift plans follow the same procedural guidelines: they require a basic employee contribution, with minimum and maximum amounts that each employee may contribute annually, frequently subject to employer restrictions.

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