Staff Personnel Manual (SPP)

Effective: 7/1/1996

Revised: 7/1/2012

SPP 510: Flexible Spending Accounts

Purpose

To provide eligible employees the opportunity to withhold pre-tax payroll deductions as contributions to flexible spending accounts to pay nonreimbursable health care expenses and/or employment-related adult and child care expenses

Sources

Internal Revenue Code § 125

Arizona Board of Regents Policy Manual - 6-604

Applicability

Benefits-eligible classified, service professional, and administrative employees

Policy

An employee can participate in a health care flexible spending account plan to receive tax-free reimbursements for certain qualified health care expenses for himself or herself, spouse, and/or dependents who meet IRS eligibility requirements.

An employee can participate in a dependent-care flexible spending account to be reimbursed tax-free for certain adult and/or child care expenses that result from the person’s employment or fulltime student status. An employee should refer to the plan document for specific eligibility requirements.

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Coverage Effective Dates

The coverage date varies depending on whether the employee enrolls as a new hire or newly benefits-eligible employee, as a result of a qualified life event, or during an open enrollment period and factors such as whether or not the employee is actively at work. An employee should refer to the plan document for specific information.

A new hire or newly eligible employee has a 90-day waiting period and enrollment must be completed with the Office of Human Resources, in writing, within 30 calendar days of eligibility.

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Changes to Coverage

Benefit elections can be changed during an annual Open Enrollment period and may be able to be changed when there is an eligible qualifying life event. Qualifying life events are regulated by IRS Section 125 and may include, but are not limited to:

1. change in marital status
2. change in number of dependents
3. change in dependent eligibility
4. change in employment status or work schedule of employee, spouse, or dependent

   and

5. change in residence that affects network availability.

An employee has 30 calendar days to notify the Office of Human Resources, in writing, of a qualified life event to be eligible to make election changes.

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Loss of Coverage

When there is a loss of eligibility, employees may be able to continue coverage for a period of time as specified in the plan document. Loss of coverage qualifying events include, but are not limited to, separation from the university or reduction in hours worked.

Additional Information

For information on ASU employee benefit plans, see the Office of Human Resources Benefits Web page.

Find employee forms on the Office of Human Resources Web site.

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