This program lets state employees set aside money in a reimbursement account to pay for certain kinds of expenses. You can increase your take home pay and decrease your taxable income. You specify the amount to be deducted from your paycheck, and the deductions occur before tax withholding, reducing tax liability. We offer two types of accounts.
Medical Reimbursement Accounts - Set aside money to reimburse eligible medical expenses.
Dependent Care Reimbursement Accounts - Set aside money to reimburse dependent day care expenses.
When you enroll in a reimbursement account, you designate an amount to be deducted each month from your wages. That money is automatically deposited in your account for one plan year. After you receive health-related or dependent care services during that year, you submit a claim for reimbursement from your account. Your reimbursement check is mailed to you, or you can request direct deposit into your checking or savings account.
You may enroll in a reimbursement account within 60 days after becoming "newly eligible" for these benefits or during the annual fall open enrollment period.
You're eligible to enroll in a reimbursement account if you have a permanent position that is half- time or more. If you have a limited term (LT) or temporary (TAU) position, you're eligible if you have a mandatory right of return to a permanent position that is half-time or more unless you are in the CoBen Program. CoBen employees are eligible even if they are in a LT or TAU appointment. If you're a permanent-intermittent employee, you're not eligible to enroll in a reimbursement account.
Open Enrollment for FlexElect Medical Reimbursement Accounts and Dependent Care Reimbursement Accounts is September 14, 2015 through October 9, 2015. If you want to enroll or re-enroll, contact your personnel office for the necessary forms.
Open Enrollment forms must be signed and submitted to your personnel office no later than October 9, 2015. All open enrollment actions will be effective January 1, 2016.
If you are currently enrolled in a FlexElect Reimbursement Account and want to participate again next year, you must re-enroll.
If you enroll or re-enroll into a FlexElect Reimbursement Account during open enrollment, you have until December 31, 2015 to cancel or change your election.
If you're newly eligible and want to enroll in a reimbursement account, you must submit enrollment forms to your personnel office within 60 days after becoming newly eligible. If you complete your forms correctly, and the State Controller's Office receives them by the tenth of the month, your enrollment is effective the first of the following month (except when the tenth is on a weekend or holiday, in which case the cut-off date will be on the next regular workday).
If you're newly eligible, your last possible effective date of participation in the 2015 plan year is December 1, 2015. For your enrollment to be effective December 1, 2015 the SCO must receive your enrollment form by November 10, 2015. Forms received after that date will be processed for the 2016 plan year.
If you enroll in a reimbursement account as a newly eligible employee, you may only claim expenses incurred from the effective date of your participation through December 31.
The IRS rule on deferred compensation allows payment for medical and dependent care expenses incurred up to two and one-half months after the end of the plan year. In other words, you may use money deducted in 2015 to pay for medical and dependent care expenses incurred up to March 15, 2016. You still have until June 30, 2016 to claim expenses incurred up to March 15, 2016 and any unused amount at that time will be forfeited pursuant to IRS Rules.
Claims are paid in the order which they are received. If you have an account balance in your prior plan year account, and submit a claim for service during the grace period (up to March 15 of the following year), the expense will automatically be paid from your prior plan year's account.
Because of this, it is important that you file claims in the order that your expenses are incurred. This will help to assure that you maximize the use of your accounts for both plan years.
Your 2014 Medical Reimbursement Account balance is $100 and your 2015 Medical Spending Account balance is $1,000. You incur a $50 medical expense on January 15, 2015 and submit a paper claim on January 20, 2015. The claim will be paid out of your 2014 account leaving a balance of $50 in your 2014 account and a balance of $1,000 in your 2015 account.
2016 FlexElect Handbook - PDF
2015 FlexElect Handbook - PDF
IRS Publication 502 Medical and Dental Expenses - PDF
IRS Publication 503 Child and Dependent Care Expenses - PDF