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Flexible
Benefit Plan
Employees are encouraged to take advantage of the
cost-saving benefits provided through the Plano ISD Flexible Benefit
Plan, commonly referred to as a "cafeteria plan". The three components
of this Plan allow you to pay for certain eligible expenses on a
pre-tax basis which will reduce your federal income taxes - Pre-Tax
Premiums, Medical Reimbursement and Dependent Day Care Flexible
Spending Accounts.
Pre-Tax Premiums
This excellent option allows you to pay any PISD
medical, dental, and/or vision premiums on a pre-tax basis. Any
eligible premium may be deducted from your paycheck before taxes
using this plan. You would be paying those premiums anyway, so under
this option, you save tax money as well.
Medical Reimbursement Flexible
Spending Account
This account allows you to set aside a fixed amount
of your pre-tax salary to pay for certain eligible health care expenses
that are not reimbursed by your insurance plans. This might include
charges applied to your deductibles, co-payments, co-insurance,
or prescription co-payments. You may include expenses incurred by
your dependents even if they are not covered by PISD benefits. The
minimum you may redirect to this account is $25 per month ($300
per year); the maximum is $416.50 per month ($4,998 per year). At
the end of the calendar year, any money remaining in your account
not claimed for eligible expenses incurred in that calendar year
will be forfeited and cannot be returned to you. Enrollment in this
account is not automatic from year to year. You must request enrollment
during the annual open enrollment period. You are encouraged to
seek professional tax or financial advice regarding this account
and your personal tax situation. Educational
Materials
Dependent Day Care Flexible
Spending Account
This account allows you to set aside a fixed amount
of your pre-tax salary to pay for certain eligible "dependent care"
expenses, such as day care for children or a disabled spouse. The
minimum you may redirect to this account is $25 per month ($300
per year); the maximum is $416.50 per month ($4,998 per year), or
$208.25 per month ($2,499 per year) if you are married and elect
to file a separate return from your spouse. At the end of the calendar
year, any money remaining in your account not claimed for eligible
expenses incurred in that calendar year will be forfeited and cannot
be returned to you. Enrollment in this account is not automatic
from year to year. You must request enrollment during the annual
open enrollment period. You are encouraged to seek professional
tax or financial advice regarding this account and your personal
tax situation. By electing this account, you will not be eligible
for the Federal Income Tax Credit. Educational
Materials
Cautions
- The types of eligible expenses that can be claimed for reimbursement
under the two flexible spending accounts are determined by IRS
regulations. To determine if a particular expense qualifies under
IRS law, you must contact CIGNA at 1-800-244-6224, a tax advisor, or the IRS.
- Since you may suffer tax consequences resulting from your elections,
you are encouraged to consult a tax or financial advisor regarding
your personal tax situation.
- By electing the dependent day care account, you will not be
eligible for the Federal Income Tax Credit.
- Benefits allocated but not used cannot be refunded - "Use It
or Lose It". When pre-tax money is allocated to a flex account,
it must be used for that benefit during the plan year. Any excess
amount remaining for a particular account at year-end will revert
back to the plan. You will lose what you don't spend. Your potential
risk can be minimized by allocating only your predictable expenses
(those costs which you can realistically expect to incur within
the plan year).
- Elections are irrevocable, except for a qualifying change in
status. You must make an advance election regarding the amount
of salary to be allocated to a flexible spending account. The
election is irrevocable, unless you experience a qualifying change
in status. See the plan document for details.
Educational Materials
Flex Card
This technology can provide an added convenience
to employees who enroll in the Medical Reimbursement Flexible Spending Account. In certain circumstances, use
of the Flex Card will allow you immediate access to the funds
you have set aside in your flex account, rather than filing paper
claims and waiting for a reimbursement check. For example, your prescription co-pays
can be reimbursed through the Medical Reimbursement account. So at the pharmacy, instead
of paying your co-pay and submitting the receipt, you swipe the
Flex Card and the claim will go directly to your account and
be paid.
There are limitations to the card. It is designed to work only at specific merchants (e.g., doctor's offices, pharmacies, hospitals). However, the card transaction machine at an eligible merchant may not always work, depending on their bank's set up.
Use of the Flex Card does not remove your responsibility
to keep all receipts and documentation to prove the eligibility
of the expense. The claims administrator will audit every transaction to make
sure the cards are being used properly. Therefore, they may request
copies of your documentation to validate any transaction. If you
do not provide the documentation requested, the transaction will
be voided, you must repay the account, and your card will be
deactivated.
The Flexible Benefit Plan Summary
Description
(61 KB) and policy contain complete details regarding use of the
Flex Card, how the card works, how you can make sure you use
it properly, your obligations when using the card, the Plan's rights
to deny access to your card and recover ineligible expenses, and
more.
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