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Met Life maintains a "Met Life Options Decision Book" (the
Met Life manual) that explains an employee's options under the
flexible benefits plan. The Met Life manual provides in
pertinent part as follows:
The Company currently spends money to pay for your
benefits. * * * The contribution you receive will pay
for most of the cost of coverage for you and for your
dependents. The cost you pay, if any, will depend on
the options you select under the Met Life Options
program.
* * * * * * *
If you select lower levels of coverage * * * the cost
may be less than the Company's contribution for you.
Then you will receive extra dollars in your pay
throughout the year. Of course, you will have to pay
taxes on these extra dollars.
If you select higher levels of coverage * * * the cost
may be more than the Company's contribution for you.
Then you will pay the difference. But you pay this
remaining cost with before-tax dollars, so you reduce
your taxes.
The amount of the "Company's contribution" (the Met Life
contribution) is not a static figure, but is based instead on the
number of dependents for whom an employee selects medical and
dental coverage.3 Thus, the Met Life contribution is greater for
employees who select medical and dental coverage for themselves
and their dependents than it is for employees who select such
coverage for themselves but not their dependents. Similarly, the
3 The Met Life contribution also includes an amount for life
insurance and long-term disability benefits, which amount is
independent of the number of an employee's dependents.
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Last modified: May 25, 2011