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GIC Flexible Spending Account (FSA) PLAN UPDATES

The GIC would like to share a few important announcements that will impact how the Health Care Spending Account/Dependent Care Account Plans (HCSA/DCAP) will be administered.

In response to the ongoing COVID-19 pandemic, the IRS recently released guidance related to the Consolidated Appropriations Act with updates for sponsors of FSAs. The new guidelines allow the GIC’s enrolled participants greater flexibility and opportunity to use all or most of the funds they contributed.

The GIC will be making the following changes to the FSA plans for FY2020 (07/01/19-06/30/20) and FY2021(07/01/20-06/30/21):

Impact to the FY2020 (07/01/19-06/30/20) Plan Year (previous plan year)

  • HCSA and DCAP Benefits
    • The deadline to incur expenses has been extended.  Participants now have until 06/30/21 to use their FY2020 funds for eligible services they receive through 06/30/21. They will also have until 7/31/21 to submit those claims for reimbursement.
  • DCAP Only – Dependent Age Allowance (FY2020 only)
    • Participants with an available balance who have dependents that turned 13 during FY2021 will now be able to submit expenses incurred throughout FY2021 for reimbursement.
    • As a reminder: virtual day camps are not an eligible expense.
  • Terminated Participants - nothing has changed.
    • HCSA participants, as always, may incur and submit expenses up to their election amount prior to their termination date. They have the entire plan year (extended through June 2021) to submit eligible expenses incurred through their last day of employment.
    • HCSA participants who are eligible were offered the FSA COBRA option if they needed to continue the benefit to have access to these funds.
    • DCAP participants, as always, may spend down their contributed balance by incurring claims after their termination date and submitting throughout the plan year and run out (July 2020-June 2021).  
  • Participants with FY2020 balances will receive an email notice from Benefit Strategies advising them of these updates and extensions.

Impact to the FY2021 (07/01/20-06/30/21) Plan Year (current plan year)

  • All claim deadlines are unchanged. FY2021 claims may be incurred (service received) from July 1, 2020 through September 15, 2021, and must be filed no later than October 15, 2021.
  • HCSA and DCAP Benefits
    • A qualifying event won’t be necessary to make election changes to either or both plans on a prospective basis only. A coordinator statement will suffice for receiving approval on these types of changes.
    • This means that in order for changes to be backdated up to 60 days and eligible for refund of deductions withheld after that effective date, you must experience a qualifying event.
      • If you experience a qualifying event, you must submit the Status Change Request form to your coordinator within 60 calendar days of the event. Supporting documentation is required for approval. 
    • If you are currently enrolled in the DCAP benefit and only have children over the age of 12, please submit a Status Change Request form as soon as possible in order to remove them from the plan and stop your deductions.
  • Terminated Participants
    • HCSA Participants - New!
      • Terminated employees will have access to amounts they contributed while they were active employees.
      • They may incur expenses with dates of service through 9/15/21 and submit those claims until 10/15/21 in order to spend down their available contributed balance.
      • Debit cards will be shut off once the termination is posted in the Benefit Strategies systems. Participants must submit their claims via the portal or by email using a claim form.
      • FSA COBRA will still be offered for those who are eligible for their full election. If your employment ends, you will receive correspondence from Benefit Strategies once they are notified of the termination.
    • DCAP Participants - nothing has changed
      • Terminated participants may spend down only what they have contributed prior to their termination. Claims must be incurred prior to 9/15/21 and submitted by 10/15/21.