Benefit Reminders For 2026

Benefit Reminders for 2026

As the new year approaches, it’s essential to review some timely benefit news and information.

State Health Plan

• Any benefit election you made during Open Enrollment for the State Health Plan takes effect on January 1, 2026. Remember to review your most recent paycheck to confirm that the plan you elected is accurately reflected, including the correct deductions. Deductions for health care are withheld one month in advance of the coverage effective date (i.e., deductions in December pay for coverage in January).
• Keep in mind that deductions will be salary-based, beginning January 1, 2026. You were assigned a salary band based on your total base pay as of September 1, 2025. If your salary changes during the first quarter of 2026, it may impact your premium rate.
• If you are enrolled in the State Health Plan for 2026, you will receive a new State Health Plan ID card along with a Lantern Health card, even if you didn’t make changes for 2026.

NCFlex and University BenefitS

• Any benefit elections you made during Open Enrollment for NCFlex and the University benefit programs take effect January 1, 2026. Remember to review your paycheck (January x for biweekly paid employees and January x for monthly paid employees) to confirm that the programs you elected are accurately reflected, including the correct deductions.
• Please read the information pertaining to the specific plans listed in this update, as it may affect your paycheck if you are enrolled in the benefit program being referenced.

UNC Voluntary Life Insurance and AD&D (Securian)

• If you are enrolled in UNC Voluntary Life Insurance through Securian, you may see a change in your deduction beginning with your January paycheck. Adjustments to your premium are made based on your age and base salary as of January 1, 2026.

Critical Illness and Accident Plans (Voya)

• If you are enrolled in the Critical Illness Plan through Voya, you may see a change in your deduction beginning with your January paycheck. Adjustments to your premium are made based on your age as of January 1, 2026.
• If you are enrolled in the Critical Illness and/or Accident Plan through Voya, don’t forget to earn your wellness benefit payment by completing an eligible health screening test. Each covered member can file for a wellness benefit payment once per calendar year.

Cancer and Specified Disease Plan (Allstate Benefits)

• If you are enrolled in the Cancer and Specified Disease Plan through Allstate Benefits, don’t forget to earn your wellness benefit payment by completing an eligible health screening test. Each covered member can file for a wellness benefit payment once per calendar year.

Health Care Flexible Spending Account (FSA)

• If you were enrolled in the Health Care FSA for 2025, eligible health care expenses must have been incurred by December 31, 2025. You have until March 31, 2026, to submit 2025 claims for reimbursement. You can rollover up to $640 of your unused account balance into 2026, as long as you have a minimum balance of at least $25. Any funds exceeding this amount will be forfeited. The rollover will not count toward the 2026 maximum election amount (currently $3,300 for 2026). This rollover feature only applies to the Health Care FSA.
• If you enrolled in the Health Care FSA for 2026, eligible health care expenses must be incurred January 1 through December 31, 2026, to be eligible for reimbursement. You have until March 31, 2027, to submit claims for reimbursement.

Dependent Day Care Flexible Spending Account (FSA)

• If you were enrolled in the Dependent Day Care FSA for 2025, eligible dependent day care expenses must be incurred by March 15, 2026, provided you remain actively employed through December 31, 2025. You have until March 31, 2026, to submit 2025 claims for reimbursement. Any unused funds will be forfeited.
• If you enrolled in the Dependent Day Care FSA for 2026, eligible dependent day care expenses must be incurred January 1, 2026 through March 15, 2027, to be eligible for reimbursement. You have until March 31, 2027, to submit claims for reimbursement.

Retirement PROGRAM

2026 Contribution Limits

• The limit on contributions to the UNC 403(b) and 457(b) plans for 2026 is $24,500. If you are over the age of 50, or will turn 50 by December 31, 2026, you are eligible for an additional $8,000 catch-up contribution.
• The limit on contributions to the State’s 401(k) and 457(b) plans for 2026 is $24,500. If you are over the age of 50, or will turn 50 by December 31, 2026, you are eligible for an additional $8,000 catch-up contribution. A higher catch-up limit applies for employees aged 60, 61, 62 and 63 who participate in the State’s plans. For 2026, this higher catch-up contribution limit is $11,250.
• Effective January 1, 2026, 401(k), 403(b) and 457(b) catch-up contributions for participants age 50 and older whose FICA wages from their current UNC constituent institution for the prior year (2025) met or exceeded $150,000 (Box 3 of the 2025 W-2) must be made on a Roth (after-tax) basis.
• Due to different contribution limits, University employees are not permitted to split their contributions between plans that would normally be aggregated; the UNC 403(b) and State’s 401(k) plans OR the UNC 457(b) and State’s 457 Deferred Compensation plans.

Form 1095-C

Under the Affordable Care Act (ACA), employers are required to report any qualifying medical coverage that you and your dependents were enrolled in during the previous calendar year. You will receive a Form 1095-C which includes information about the health coverage offered to you by the University. The form will be mailed to your home address sometime in the first quarter of 2026. You will not need to attach or file your Form 1095-C with your 2025 Federal income tax return; however, you may need to use its information when you complete your tax return.

Questions?

Please contact the Benefits Department if you need assistance or have questions about the benefit plans you have enrolled in.  You can reach out to benefits@uncw.edu for assistance.