Flexible Spending Accounts are tax free deductions from your pay that are designed to help you benefit by allowing you to pay for eligible medical, dental and vision expenses, as well as work-related child and adult day care expenses, on a pre-tax basis. FSAs allow you to direct a part of your pay, tax-free, into one or both of these special accounts that you can use throughout the year to reimburse yourself for eligible out-of-pocket expenses.

The open enrollment period will be held from October 25, 2010 through November 9, 2010.

EMU offers two Flexible Spending Accounts (FSAs) to help employees save on taxes: the Dependent Care FSA and the Health FSA. The plans allow you to pay on a pretax, salary reduction basis for eligible dependent care expenses or health care expenses not covered by your medical, dental or vision plans.

The plan includes a FSA Debit card which allows you to pay for health care expenses. The card is linked to the Medical FSA. The various links indicated below, provide the enrollment kit for the FSA , an explanation of the Debit Card and an explanation of how a FSA can save you money.

Flexible Spending Grace Period

The U.S. Department of Treasury allows employers who offer flexible spending accounts under a cafeteria plan can extend the FSA Benefit Period from December 31 to March 15th of the following year, providing a “grace period” during which eligible expenses can be incurred and reimbursed. The intent is to help account holders avoid forfeiting any of the funds they deposited in FSA accounts.

EMU has adopted the grace period and has also extended the filing deadline for claims against 2010 accounts. Meaning, 2010 participants have until March 15, 2011 to incur claims against their 2010 elected amount. However, you cannot use your debit card to expend grace period monies. You will need to file a manual reimbursement for grace period purchases.

How does the 2010 grace period impact my account if I re-enroll for 2011? If you have already spent (or know you will spend) all of your 2010 account by the end of 2010, the grace period for 2010 will not impact you. However, if you have money left in your 2010 account going into 2011, the grace period will impact you. This is how it will work:

You will be able to use any FSA money you have left as of December 31, 2010, on

health care expenses until March 15, 2011. You must directly pay for your purchases,

submit the receipts to BASIC by March 31, 201 and indicate that these expenses are

for the 2010 FSA year. Otherwise, the expenses will be deducted from your 2011 FSA,

if you have one. If you use your debit card after December 31, 2010, the purchases

will be deducted from your 2011 elected amount.

Clarification - Flexible Spending Account For Adult Children Ages 19-26

In accordance with IRS Notice 2010-38, employees with a Flexible Spending Account can use their FSA for their children between the ages of 19-26, regardless of their dependency status. Children through age 26 are eligible to have their medical, dental, vision, etc. reimbursed through their parent’s FSA. Employees should take this change into consideration when calculating their FSA election amount for 2011.

2011 Flexible Spending Notice

BASIC Flex Enrollment Booklet

EMU Flex Enrollment Form

BASIC Flex Additional Debit Card Request Form

BASIC Flex Card User Guide

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