[MyOEBB] OEBB Fitness Rewards program status

[MyOEBB system updates]

NO ACTION REQUIRED - INFORMATION ONLY

Dear Benefits Administrators, Business Managers, and Superintendents:

Recently OEBB has received guidance regarding cash incentives or rewards for wellness program participation. The IRS concluded that all cash incentives or rewards paid to employees for participation in an employer-sponsored wellness program are considered a payment of wages subject to employment taxes. Subsequent advice from the Department of Justice indicated that Oregon PERS taxes must also be applied to cash incentives or rewards.

As you may know, OEBB began offering a gym reimbursement program called Fitness Rewards beginning October 1, 2015. Because this program is one that uses cash rewards, the gym reimbursement dollars are now subject to payroll taxes. At this time, no action is required of OEBB-participating employers/entities. This is just information the OEBB Board must consider going forward.

Over the last several weeks, OEBB has been exploring various options for the Fitness Rewards program, including the pros and cons associated with each. The OEBB Board will be discussing the Fitness Rewards program and possible solutions to ensure compliance with the new IRS regulations at their next Board meeting, scheduled for October 4, 2016.

At this point, we are not processing any new registration forms for the program. Additionally, we are sending out the attached communication to our current Fitness Rewards members by both email and USPS mail. These members should receive the email later today and the paper letter within the next week. Once the Board reviews and discusses options at their next Board meeting, we will communicate further information at that time.

If you have any questions, please contact Member Services at (888) 469-6322 or email oebb.benefits at oregon.gov<mailto:oebb.benefits at oregon.gov>.

Thank you,
[cid:image001.jpg at 01D20825.08649F70]
Linda Freeze
OEBB Benefits Manager

[cid:image001.jpg at 01D10D96.C6B9DCE0]

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