Carry-over Threshold and Maximum Carry-over Bank Amount Increasing

Effective with benefit periods beginning on or after January 1, 2022, both the threshold at which you begin to accumulate carry-over credit and the amount of carry-over credit necessary for one year of Health Plan coverage will increase from $140,000 to $150,000. In order to accommodate the increased carry-over threshold amounts, the carry-over bank maximum has likewise been increased from $480,000 to $510,000, effective with benefit periods beginning on or after October 1, 2021.

Under these new carry-over amounts, you will be able to bank covered earnings in excess of $150,000 (up to a maximum of $510,000) for use during periods in which you do not meet the minimum earnings threshold for earned coverage. During such periods, $150,000 in carry-over credit is needed to grant one year of Health Plan coverage. For more information regarding carry-over coverage, please refer to the March 2020 Health Plan Summary Plan Description, section 2(a) Carry-Over Credit, on pages 10-11.

If you have questions regarding this information, contact Participant Services at (323) 866-2200, Ext. 502 or toll-free at (877) 866-2200, Ext. 502.