To: Full-time Employees and Eligible College Assistants
From: Ronny Widener Director of Human Resources
Date: September 26, 2002
Re:     Open Enrollment/Transfer Period for Health Plans, Flexible Spending
        Accounts, and the Health Benefits Buyout Waiver Program


I write to inform you about the open enrollment/transfer period for the
benefit programs listed below. Please pay close attention to the dates.

    Benefit Plan                     Open Enrollment/Transfer Period

    Flexible Spending Accounts              September 23-November 22
    Health Benefits Buyout Waiver Program   September 23-November 22
    Health Plans              October 15- November 15

Health Plans

During the transfer period for health plans, you may:

· transfer to another health plan;
· add or drop an optional rider;
· add or drop dependents, this is the only time that you can make
        changes in your dependent status without a qualifying event;
· elect to waive your health coverage; and
· change your health premium tax status.

Health benefit applications and information about the health plans will be
available in the Human Resources Office on or after October 7, 2002. We
have not been notified of any changes to the health plans.

Changes to your health plan will become effective January 9, 2003. You will
need to review your pay stub to make certain the changes you elect are
reflected.

Please keep in mind that every July 1st rate changes may occur with some of
the health plans.

Flexible Spending Accounts

Flexible spending accounts give you the opportunity to put aside money on a
pre-tax basis to pay for health and dependent care. There are two types of
flexible spending accounts: the Dependent Care Assistance Program (DeCAP)
and the Health Care Flexible Spending Account (HCFSA).

DeCAP provides you the opportunity to use tax-free dollars to pay for
expenses to care for your dependents. HCFSA helps you pay for health-
related expenses not paid by your health, dental or vision care insurance.

Applications to receive information for the flexible spending accounts have
been distributed to full time employees and eligible college assistants.
You should complete the application and return it to the City of New York
(the return address is preprinted on the application). The Human Resources
Office will have the enrollment materials for these accounts on or after
October 7, 2002. Employees currently enrolled in these plans will soon
receive enrollment materials from the City of New York’s Pre-Tax Benefits
Office, and must re-enroll each year. Deductions will be reflected in the
January 23, 2003 paycheck. Please check to see that this has occurred at
that time.

Health Benefits Buy-Out Waiver Program

The Health Benefits Buy-Out Waiver Program allows eligible employees to
waive their health benefits and receive a cash incentive of $500 for
individual coverage and $1000 for family coverage, per calendar year.

Applications for this program may be obtained by completing the application
that you received in your mailbox for flexible spending accounts and
mailing the application to the City of New York. The Human Resources Office
will have applications for this program on or after October 7, 2002.

You may also obtain information about these plans by calling (212) 306-7760.

Full-time, tax-levy employees are eligible for the above plans. College
Assistants are eligible for the above plans if they have worked for the
College for at least 90 days, are working at least 20 hours per week in
those 90 days, and have an appointment of at least six months.

If you require additional information please call Donna Katz at (212) 802-
2740.

Applications submitted after the indicated deadlines will not be accepted.