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Flexible
Spending Accounts
Regular full-time
or regular part-time employees can set aside pre-tax dollars for reimbursement
of non-reimbursable health care expenses (i.e., not paid by the insurance
plans) or dependent care. A fixed amount determined by the employee
is deducted from your paycheck before deductions for income and social
security taxes are calculated, and kept in an account for the individual.
Checks are produced weekly to reimburse employees for their eligible
expenses. Employees who choose to participate in the flexible spending
accounts must keep in mind that the money deposited must be used during
the plan year or it will be forfeited, as described below.
The plan offers
two different spending accounts: 1) for the reimbursement of health
care expenses (excluding insurance premiums), and 2) for the reimbursement
of dependent care expenses. These accounts are administered by BAC.
An annual Open Enrollment
period allows employees to re-enroll or make changes in their spending
accounts. Changes are not allowed outside Open Enrollment unless the
employee experiences a life status change such as: marriage or divorce;
birth or adoption of a child; termination or commencement of a spouse's
employment; death of a spouse or child; loss of eligible status for
employee benefits. Re-enrollment is required
each year for participation in the next plan year. The plan year
is from July 1 to June 30. An additional grace period has
been instated from July 1 - August 31. See "How the
Plan Works" for more informaiton.
How
the Plan Works
During Open Enrollment,
an employee who chooses to participate in a flexible spending account
elects the monthly dollar amount for pretax payroll reduction. This
amount is deposited with BAC into the flexible spending account on a
monthly basis. After the employee incurs and pays out of pocket expenses,
the employee submits a copy of the receipt and a claim form to BAC for
reimbursement from the account.
Expenses are claimed
based on the date services were provided, not on the date services are
paid. Qualified expenses incurred during the plan year (July 1 - June
30) are reimbursable. In addition, a grace period has been instated.
The grace period allows the employee to continue incurring qualified
expenses through August 31 as part of the previous July 1 - June 30
plan year. Expenses incurred must be filed
as claims prior to September 30, each plan year. Any
unclaimed funds are forfeited 90 days after the plan year ends.
Health
Care Flexible Spending Account
This account allows
employees to set aside pre-tax dollars for out-of-pocket medical, prescription
and dental expenses (not paid by insurance) such as deductibles and
coinsurance, copayments, vision expenses and other health care related
expenses. Reimbursement may also be available for some over-the-counter
medications. Please review the Flexible Spending Summary Plan Description
for a comprehensive list of eligible expenses. Download a copy of the
health care flexible spending account
claim form.
Dependent
Care Flexible Spending Account
This account allows
an employee to pay for child care or for the care of a disabled child
or elderly dependent parent living with the employee, with pre-tax dollars.
Because total family income is one factor in determining whether this
plan will provide favorable tax treatment over the current child care
tax credit, please review examples provided in the Flexible Spending
Summary Plan Description. Download a copy of the dependent
care flexible spending account claim form.
Premium
Only Plan
Seattle Pacific
University makes it possible to pay all fringe benefit premiums with
pretax dollars through the Premium Only Plan. Participation is automatic
unless the employee completes a waiver form.
During the annual
Open Enrollment employees are automatically re-enrolled in the Premium
Only Plan, unless the employee completes a waiver form at that time.
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