COMMONLY ASKED QUESTIONS ABOUT
What is a Flexible Benefits Plan?
The Flexible Benefits Plan allows you to use tax-free money to pay unreimbursed medical expenses (including dental and vision), and dependent care expenses. Instead of taking all your wages in TAXABLE amounts, you authorize your employer to deposit part of your pay, tax-free, into a Flexible Benefits Account. You may then submit claims for qualifying expenses and receive reimbursement with TAX-FREE dollars. Through the use of a Flexible Benefits Plan, you can pay for expenses with pre-tax dollars -- the same expenses you would otherwise pay for with after-tax dollars.
Why do I want to participate?
By signing a participating agreement, you agree to have your salary reduced by the agreed upon amount. You do not pay FICA or income tax on Flexible Benefits Plan contributions.
When do I have to make my election?
New employees may elect to participate within 30 days of hire. Palmer employees are provided open enrollment each fall for the upcoming calendar year.
What happens to money in my account if I should terminate my employment?
You would be entitled to reimbursement for expenses which are incurred within the same plan year and before your termination date. You have ninety (90) days after your termination in the Plan to submit claims for reimbursement. Any money remaining will forfeit to your employer.
What happens if the claim exceeds the balance in my account?
Your medical care reimbursement account claims will be paid in full, up to the annual amount you have elected to contribute for that plan year, whether or not you have actually contributed the full annual amount.
Your dependent care reimbursement account claims will be processed and paid up to the current balance in your account. If the claims exceed the balance, PBA will automatically reprocess as your balance allows.
Be aware that eligible expenses cannot carry over to the following year. Additional expenses that exceed your flexible plan contributions may be allowable on your tax return.
Can a benefit election be changed?
Only during the open enrollment period for the upcoming plan year or if there is a change in family status (i.e., marriage, divorce, death of a spouse or child, birth or adoption of a child, termination of employment of you or your spouse) which necessitates a change in a benefit election.
What happens if I don't use all the money contributed?
IRS regulations require any unused balance to be forfeited to Palmer College. We recommend strongly that you be conservative in your estimates.
What will my employer do with the forfeited balances?
The money is generally used to off set the cost of administration of the plan.
What expenses are allowable?
Any medical expenses that are defined as deductible by the IRS and not covered by a health plan,
this does include most over the counter drugs/medicine and dependent care expenses as allowed by the IRS guidelines (costs incurred so as to enable you and your spouse to be gainfully employed.)
How often will checks be issued?
How long do I have to submit claims after the end of each calendar year?
Who do I call if I have questions regarding the Flexible Benefits Plan?
You may call a PBA
customer service representative at 1-800-435-5694 or view your Flexible Spending
Account information at
http://www.pbaclaims.com .