PART 1: DESCRIPTION OF FLEXIBLE SPENDING ACCOUNT

Flexible Spending Accounts allow employees to set aside dollars from their paycheck on a pre-tax basis in order to be reimbursed for out-of-pocket health care and child care expenses for themselves and their eligible dependents as defined by IRS codes.

PART 2: ELIGIBILITY AND DEADLINE TO ENROLL

Effective July 1, 2016, regular and non-regular term appointment employees who work at least a .75 FTE are eligible for this plan within the first 31 days following their hire date, with the plan becoming effective the first day of the month following receipt of the enrollment form in the Office of Human Resources.  If an employee does not return a completed and signed enrollment form to the Office of Human Resource Services department within their first 31 days of employment, they will not be eligible to participate in the plan until the next open enrollment period.  Eligible employees also include any employee continuously enrolled in this benefit from June 30, 2016.

PART 3: PERIODIC OPEN ENROLLMENT

Open enrollment occurs during the fall of each year with any changes or new enrollments becoming effective January 1^st.  During open enrollment eligible employees who are not currently enrolled in the plan may enroll and employees currently enrolled in the plan must complete paperwork to continue the plan.

PART 4: CHANGES TO PLAN

Employees may only make changes or new enrollments to their plan outside of the open enrollment period within 31 days after a change in status occurs.  The proper forms must be executed with the Office of Human Resource Services department within the 31-day period.  Examples of a change in status include but are not limited to:

1. Marriage
2. Divorce
3. Legal Separation
4. Childbirth
5. Adoption of child
6. Death
7. Loss of prior coverage
8. Loss of dependent status

PART 5: ACCOUNT BALANCE AFTER CHANGE TO PLAN

If a change in status occurs and an employee elects to reduce or cancel coverage, the employee may not reduce or cancel coverage to a point where the total plan year account balance is less than the amount of funds already reimbursed for the employee. An employee’s account balance after a change has been made during a plan year will be calculated by adding any balance (including a negative balance) remaining in the employee’s account immediately preceding the change, to the newly elected plan year election amount for the remainder of the plan year in which the change in status took place.

PART 6: CANCELLATION OF PLAN/REFUNDS

If coverage is cancelled, no refund of contributions will be made and no claims incurred after the last day of the month in which the change in status occurred will be eligible for reimbursement.

PART 7: CONTRIBUTIONS DURING LWOP STATUS

While on leave without pay, employees are responsible for continuing to make contributions to the plan. If contributions are not made, the plan can be cancelled for the remainder of the plan year. The employee will only be eligible to rejoin the plan during the next open enrollment period held in the fall of each year with the plan becoming effective January 1^st.

PART 8: ISSUES UPON SEPARATION FROM EMPLOYMENT

If an employee separates employment from the university, coverage will continue until the last day of the month in which they were employed and claims incurred during that time may be submitted for payment no later than 90 days following the plan year. Employees are allowed to continue the coverage following separation through COBRA.

Related

Cross-Reference:

Revision History:
2017 Recompilation, formerly Rule 7.09
06/27/2016 Change in Benefits approved by Board of Regents
06/21/2016 Change in Benefits approved by Chancellor
10/21/2015 former Policy 7.09 replicated by Board of Regents Rule as initial 7.09
06/20/2013 Amendment to Policy 7.09 approved by Board of Regents
07/15/2008 Amendment to Policy 7.09 adoption ratified by Board of Regents
06/10/2008 Amendment to Policy 7.09 approved by Administrative Council
10/22/2007 Amendment to Policy 7.09 approved by Board of Regents