Citi Benefits Handbook
If you are eligible and you elect the DCSA subsidy during enrollment (either as a new hire or during annual enrollment), Citi will pay up to 30% of your DCSA contribution. The percentage will depend on the amount of your benefits-eligible pay and whether you work part-time or full-time.
Note: To obtain the DCSA subsidy you must elect it; it is not automatic.
- If you are a sole financial provider: Your benefits-eligible pay and your total annual household income together do not exceed $90,000; or
- If you are in a dual-income household: Your benefits-eligible pay does not exceed $45,000 and your total annual household income does not exceed $90,000.
You must enroll for the subsidy during your annual enrollment period (or if you are enrolling as a new hire or newly eligible for benefits). You cannot receive the subsidy through any other process. You must elect the full amount that you want to use to reimburse yourself for eligible expenses. The deductions from your pay will be the amount of the election minus the amount of the subsidy.
The amount of your subsidy will not change during the plan year even if you change your DCSA contribution amount as a result of a qualified change in status. Your subsidy will be credited to you during the first quarter if you enroll during annual enrollment or within 31 days if you enroll as a new hire or are newly eligible for benefits.
You cannot become eligible for the DCSA subsidy mid-year as a result of a qualified change in status, such as a divorce or death of your spouse.
1 Your total household income and benefits eligible pay cannot exceed $90,000 at the time you enroll.
If You Are Rehired
If you terminate employment with Citi and are rehired in the same plan year, you must re-enroll to have DCSA coverage. If you re-enroll in the DCSA, you are not eligible for the subsidy, because your subsidy was credited during your employment earlier in the same plan year. (Subsidies are credited during the first quarter if you enroll during annual enrollment or within 31 days if you enroll as a new hire or are newly eligible for benefits.)
DCSA/Bright Horizon Day Care Center Use
At certain locations, Bright Horizon day care centers are available to provide regular and emergency/unplanned need child care services for Citi employees. Typically, this child care service is provided at a discount from the market rate of child care. For example, if the market rate for child care is $20/hour, Bright Horizon will charge $10/hour. The $10/hour discount may constitute taxable income if the discount in combination with the amount you contribute and utilize under the DCSA exceed $5,000, the pre-tax deferral maximum permitted under the Code for the plan year. If you incur child care expenses that are reimbursed or paid up to the DCSA limit of $5,000 (including the Citi DCSA subsidy) and you receive a discount in using the Bright Horizon day care center, you will incur taxable income in the amount of the discount that you received because the difference is deemed to be paid by Citi, which constitutes a benefit that is not authorized under the Code. As such, it is taxable income to you, subject to imputed income tax. If possible, you may want to consider your use of the Bright Horizon day care center in determining how much to contribute to your DCSA to avoid incurring taxable income. Please note if you pay the market rate for Bright Horizon day care services, imputed income tax is not applicable.