State of Connecticut Office of the State Comptroller Attachment to MEMORANDUM NO. 2003-42 Dependent Care Assistance Program (DCAP)

Attachment to MEMORANDUM NO. 2003-42

Office of the State Comptroller

Dependent Care Assistance Program (DCAP)

The cost of day care has skyrocketed!! DCAP can help.

The Dependent Care/Day Care Assistance Program (DCAP) provides a tax-free way for you to pay for dependent care expenses, allowing you to save money on the cost of these services. The State of Connecticut recognizes that it has become increasingly difficult to pay for these expenses while you are employed. It is for this reason that the Office of the State Comptroller, under the provisions of C.G.S. Section 5-264(b), makes available to you a benefit program that offers significant tax advantages in helping you pay for dependent care expenses.

HOW DOES IT WORK?

Each dollar you put into the DCAP is a dollar not taxed. If, for example, you pay approximately 30% of your income in federal, state and social security taxes, by using the DCAP you would save 30% on the dependent care expenses you pay for from your DCAP. You may contribute up to $5,000 of your salary to your DCAP ($2,500 if you file taxes separately). Remember, if you are married, your spouse must also work, be a full-time student, or be disabled.

Whom can I include in my DCAP?

Children under the age of 13, whom you are entitled to claim as dependents on your federal income tax return; and/or
A disabled spouse or other disabled dependent who spends at least eight hours a day in your home.

What services are included?

Care at licensed nursery schools, day camps (not overnight camps) and child care centers which provide day care.
Services from individuals - other than your or your spouse's dependent or children under age 19 who provide care in or outside your home.

Contact Benefit Concepts, Administrator for the State of Connecticut DCAP program, at 877-629-1500 for information regarding DCAP benefits and the enrollment process.

The open enrollment period for the 2004 plan year is November 1st, 2003 through November 30, 2003.

Remember, even if you are currently participating in the DCAP program, you must complete a new election form for the 2004 plan year. Enrollment kits will be mailed to current participants. If you do not receive your enrollment kit or you are a new enrollee, contact Benefit Concepts at 877-629-1500. Enrollment forms must be postmarked by November 30th, 2003. The plan cannot accept late enrollments for any reason.

Dear State Employee:

I encourage you to give careful consideration to this attractive employee benefit as a way to assist in managing your dependent day care expenses while at the same time reducing the amount you pay in taxes each year.

Sincerely,

Nancy Wyman
State Comptroller

For all State of Connecticut Employees interested in receiving DCAP enrollment kits, please contact Benefit Concepts, Administrator for the State of Connecticut DCAP program, at 1-877-629-1500 or stop by one of the listed locations on the reverse side of this flyer during the open enrollment period.

In addition, protect your future with Life and Disability Insurance designed especially for State employees from MEDICAL LIFE INSURANCE COMPANY. Please call 1-866-858-1171 to speak with an MLI representative and receive further information on the following voluntary benefit programs:

Voluntary Life Insurance
Voluntary Accidental Death & Dismemberment Insurance
Voluntary Short-Term Disability Insurance

All programs are conveniently available to State employees through payroll deduction.

Return to Memorandum 2003-42

Return to Index of 2003 Comptroller's Memoranda
Return to Index of Comptroller's Memoranda
Return to Comptroller's Home Page