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Flexible Spending Plan Quick Access Menu |
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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.
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.
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.