Flexible Spending Account Intro
The Santa Clara Valley Water District is introducing a new benefit option for all regular employees. Effective July 1, 2008, you will have the option to participate in a Flexible Spending Account (FSA) also referred to as a Section 125 plan. FSAs reduce your taxes by allowing you to pay for unreimbursed health care expenses and/or dependent care expenses with pre-tax dollars. Each year you decide how much to contribute to each account based on your needs within the plan limits, and then reimburse yourself for your out-of-pocket health care and/or dependent care expenses. For period July 1 – December 31, 2008, the plan limit for health care expenses will be $3,000. An analysis will be made at the end of the year to determine next year’s plan limit. You can choose to enroll in one or both accounts. The plans have a “use it or lose it” provision, which means that you forfeit any unused account balances at year-end. This new benefit plan will be administered by Pacific Benefits who will set-up your account, process your reimbursement claims and assist you with any related questions.
Health Care Account
There are certain health care related expenses that may not be fully covered under the District’s health care plans, which means you have to pay for them out-of-pocket. The reimbursable items have to meet the IRS guidelines which may include such things as health plan deductibles, co-pays, prescriptions, glasses, contact lenses, certain over-the-counter medications, and dental and orthodontia care.
Dependent Care Account
The District implemented the Dependent Care Spending Account in 1990. As a reminder, this plan allows you to set aside money on a pre-tax basis to use for child care expenses or for the care of a disabled dependent adult. With Pacific Benefits administering the account, effective July 1, 2008, the current $2.00 administration fee per pay period will be removed for those employees already participating in the Dependent Care Spending Account. This administration change does not permit any adjustments to the contribution amounts you elected at the beginning of 2008. Beginning July 1, 2008, employees currently enrolled in the Dependent Care Spending Account will be required to submit their reimbursement forms to Pacific Benefits. More information will be sent directly to those employees already enrolled in the Dependent Care Spending Account. Also, this administration change does not permit new enrollments into the plan. Open Enrollment will be held in December 2008 for reimbursements beginning in 2009.
To learn more about the new Health Care Account benefit option or pick-up an enrollment form, the Benefits Administration Unit has coordinated two brown bags. The deadline to return your enrollment form to the Benefits Administration Unit (Crest Bld.) is Friday, June 6, 2008. We strongly encourage employees to participate in one of the scheduled presentations prior to enrolling.
Thursday, May 22nd, Conference Room A-143 (HQ Bld.)
(Noon to 1:00 p.m.)
OR
Tuesday, June 3rd, Conference Room B-108 (Admin.Bld.)
(Noon to 1:00 p.m.)
No need to RSVP, just plan on attending one of these two very important brown bags. In the meantime, the IRS website can provide a wealth of information at www.irs.gov (Publication 502) or call the Benefits Hotline at extension 3030.
