FlexCash Plan

The CSU offers the FlexCash Plan to help you tailor your benefits package to meet your needs.  If you have medical and/or dental coverage outside of the CSU, the FlexCash Plan pays you cash in lieu of CSU coverage, allowing you to receive only the coverages you and your family need.

FlexCash is an optional benefit plan that allows you to waive CSU medical and/or dental insurance coverage in exchange for cash, provided you have other non-CSU coverage. If you waive medical and/or dental insurance coverage, you will receive additional cash in your paycheck each month. The FlexCash payment is treated as taxable income and will be subject to the same payroll taxes (i.e., federal, state, Social Security, Medicare) as regular salary.  However, FlexCash will not be considered compensation for retirement purposes. The additional cash income will be reported as income on Form W-2 for the year you receive it.  You should ensure your medical and dental needs are met before you choose the FlexCash Plan. If you decide to waive the CSU medical and/or dental coverage, you will be required to certify on the FlexCash Enrollment Authorization form that you have alternative non-CSU medical and/or dental coverage.

Under the Federal Patient Protection and Affordable Care Act (ACA), the IRS has recently prohibited employers from offering cash to employees who choose to waive employer-sponsored medical coverage and enroll in "individual" medical coverage. Employees who are enrolled in individual medical coverage, such as Tricare, Medicare, Medi-Cal and Covered California, are not eligible to receive cash in lieu of other medical medical coverage even if the coverage provides minimum value. These requirements do not apply to dental coverage.

FlexCash Plan Amount

If you waive:

Monthly Payment:

Medical and Dental






FlexCash Plan Eligibility

  • You meet the eligibility requirements for CSU medical and dental benefits, and
  • You are an active nonrepresented employee, or an active represented employee in a bargaining unit for which FlexCash participation has been negotiated, and
  • You have other, non-CSU medical and/or dental coverage through an individual policy, private group coverage, or coverage related to employment outside the CSU system.

**You are not eligible to participate in FlexCash if you are covered for medical and/or dental as a dependent of another CSU employee, or retiree (dental only).

Enrollment Deadline

FlexCash enrollment authorizations must submitted to the Office of Human Resources - Benefits by the 8th of the month in order to have coverage effective the 1st of the following month. Additional deadlines apply- Please inquire when submitting your enrollment authorization.

If there is a discrepancy between this information and the official plan documents and contracts, the official documents will always govern.