Flexible Spending Accounts

Eligibility and Plan Participation 

You are eligible to participate in the Flexible Spending Account Plan if you are an active, part-time or full-time employee of the Company who is regularly scheduled to work for at least 20 hours per week. 

Participation in the Flexible Spending Account Plan is entirely voluntary. You can participate by making before-tax payroll deduction deposits to your Health Care and/or Dependent Care Flexible Spending Account. 

WHEN YOUR COVERAGE BEGINS
In order to qualify for Flexible Spending Account Plan benefits, you must: 

  • enroll in the Health Care Spending Account and/or the Dependent Care Spending Account; and
  • agree to make the required before-tax payroll deduction deposits to your account(s) (see How Your Flexible Spending Accounts Work). 

If you want to participate in one or both of the Flexible Spending Accounts, you should enroll within 30 days of the date that you are hired. If you enroll within 30 days of the date that you are hired, your participation will begin as soon as administratively possible following the date that your enrollment application is received and approved. 

If you do not enroll when you are first eligible to do so, you will have to wait until the next annual open enrollment period (see below for details).

Actively at Work
You must be actively at work on the date your participation begins. You are considered to be “actively at work” if you are performing the duties of your job at the Company’s place of business, or at any other place that the Company’s business requires you to go. If you are not actively at work on the date that your participation would otherwise begin, your participation will be postponed until you are actively at work. 

You must re-enroll for the Flexible Spending Account Plan each year. You can do so during the annual open enrollment period. This is explained below.

PAYING FOR YOUR BENEFITS
As a Flexible Spending Account participant, you can set aside before-tax dollars for deposit in a Health Care and/or Dependent Care Spending Account. During the year, you can make withdrawals from the appropriate account(s) to reimburse yourself for eligible health care and/or dependent care expenses. 

The term “eligible expenses” is important, because your expenses must meet specific requirements to qualify for reimbursement. See How Your Flexible Spending Accounts Work for more complete details. 

You can make your Flexible Spending Account elections during the annual open enrollment period. You cannot change these elections during the year, unless you have a Change in Status (as described below).

ANNUAL OPEN ENROLLMENT PERIOD
In the fall of each year, the Company sponsors an open enrollment period. During this period, you can elect to enroll for, change, or cancel your Flexible Spending Account Plan participation.

Annual Re-enrollment
Your Flexible Spending Account Plan participation does not automatically “carry over” from year to year. You must re-enroll in the Flexible Spending Account Plan during the annual open enrollment period if you want to continue your participation for the next calendar year. 

Your Open Enrollment Election(s)
The Flexible Spending Account Plan election(s) you make during the annual open enrollment period will remain in effect during the next calendar year. This applies to: 

  • the account(s) you have elected to participate in (i.e., the Health Care Spending Account, and/or the Dependent Care Spending Account); and
  • the amount of your before-tax payroll deduction deposits to your account(s).

You will not be permitted to change the above election(s) during the year, unless you have a Change in Status.

For example, assume that you elect to cancel your Flexible Spending Account Plan participation during the 2017 annual open enrollment period. This election will go into effect on the next January 1, and will remain in effect for the 2018 calendar year. You cannot change this election until the next annual open enrollment period, unless you have a Change in Status.

CHANGE IN STATUS
In general, you cannot enroll for, change, or cancel your Flexible Spending Account Plan participation during the year, unless you have a Change in Status. For plan purposes, you are considered to have a Change in Status in the event of: 

  • your marriage, divorce, legal separation, or annulment;
  • the death of your spouse or dependent child;
  • the birth or adoption of a child;
  • a change in your employment status or that of your spouse, including termination or commencement of your spouse’s employment, switching from full-time to part-time employment, a reduction in work hours, or similar change;
  • you or your spouse taking an unpaid leave of absence;
  • the loss of a dependent’s eligibility under this or another health care plan;
  • the loss of a dependent’s eligibility under the Dependent Care Flexible Spending Account;
  • your loss (or your spouse’s loss) of health coverage under an employer-sponsored or other health care plan; or
  • a change in residence or worksite for you or your spouse (if the change alters the benefits for which the person is eligible).

Effective Date
Your election to enroll for, change, or cancel your Flexible Spending Account Plan coverage will go into effect as of the date of the Change in Status, provided that you make this election within 30 days of the date of the change. 

For example, assume that you are enrolled in the Health Care Flexible Spending Account. Also assume that you and your spouse adopt a child during the year. In this case, you can elect to open a Dependent Care Flexible Spending Account, provided that you make this election within 30 days of the date that your new child is placed with you for adoption.

If you do not elect to enroll for, change, or cancel your Flexible Spending Account Plan coverage within 30 days of the date that a Change in Status occurs, you will have to wait until the next annual open enrollment period.

Cancelling Coverage
If you have a Change in Status, you can elect to cancel your Flexible Spending Account Plan coverage. If you elect to cancel your coverage, you cannot restore it until the next annual open enrollment period, unless you have another Change in Status. 

LAYOFF OR LEAVE OF ABSENCE
If you go on a paid or unpaid temporary leave of absence for FMLA* or other reasons, you may continue to make withdrawals from your Health Care and/or Dependent Care Flexible Spending Account to pay for eligible health care and/or dependent care expenses. 


*Family and Medical Leave Act 

Account Deposits: Your before-tax payroll deduction deposits to your account(s) will continue during a paid temporary leave of absence for non-FMLA reasons. If you take an unpaid temporary leave of absence (or if you are receiving disability pay), you have the same account deposit options that are shown below for FMLA leave. 

Family and Medical (FMLA) Leave: Your participation in the Flexible Spending Account Plan may continue during an authorized FMLA leave. You will have the following options for your account deposits: 

  • you may continue to make after-tax deposits to your account(s) while on FMLA leave;
  • you may pre-pay all or a portion of your account deposits in before-tax dollars for the expected duration of your FMLA leave; or
  • you may elect to have your deposits suspended during your leave. Upon your return, your annual goal amount will be recalculated, based on the remaining pay periods and repayment must be completed before the end of the plan year.

You should contact Human Resources for more information concerning the continuation of your benefit coverage during an authorized FMLA leave. 

Military Leave: Reservists who are called to active duty with the Armed Forces of the United States have special benefit continuation and reemployment rights under the law (see Administrative Information). In addition, the federal Family and Medical Leave Act (FMLA) was amended to add two new leave rights related to military service, effective January 16, 2009: 

  • Active Duty Leave: Eligible employees are entitled to up to 12 weeks of leave because of “any qualifying exigency” due to the fact that the spouse, son, daughter, or parent of the employee is on active duty, or has been notified of an impending call to active duty status, in support of a contingency operation.
  • Injured Service Member Leave: An eligible employee who is the spouse, son, daughter, parent, or next of kin of a covered service member who is recovering from a serious illness or injury sustained in the line of duty on active duty is entitled to up to 26 weeks of leave in a single 12-month period to care for the service member. The employee is entitled to a combined total of 26 weeks for all types of FMLA leave in the single 12-month period.