District Flex Plan (Internal Revenue Code Section 125)

PURPOSE

Internal Revenue Code Section 125 allows employers to structure benefit plans to provide options to its employees.  Employees in qualified plans are allowed to earmark pre-tax dollars toward specific uses for health and dependent care.  To take advantage of this provision of the IRS Code, the District offers employees participation in its Flex Plan for health care premiums, health care expenses, and dependent care expenses.

ELIGIBILITY

Participation in the Flex Plan is made available to monthly employees in eligible bargaining/meet and confer groups as agreed between the District and the respective groups.  Enrollment shall take place once annually, concurrent with the District's open enrollment period for health benefits.

1. Current eligible monthly employees may enroll during the initial enrollment period as announced by the District Benefits Office, or during the annual open enrollment period, by completing a "Flexible Spending Account Enrollment/Change Form" and submitting it to the District Benefits Office.
2. New monthly employees in eligible employee groups may enroll within 30 days of initial hire and employee benefit orientation.

GUIDELINES

1. Administration of the Flex Plan shall be provided by an outside contractor under service agreement with the District. Individual claim forms will be submitted to the District Benefits Office and transmitted to the contracting agency for payment.
2. Human Resources Responsibility
   1. Provide general information to employees on the Flex Plan.
   2. Accept and verify enrollment forms and eligibility.
   3. Input appropriate payroll reductions as authorized by the employee.
   4. Provide payroll reduction records and information to contracting agency on plan participants.
   5. Receive and transmit claim forms.
   6. Maintain periodic reports on plan participation.
3. Business Services Responsibility
   1. Establish appropriate account to retain funds on deposit.
   2. Transfer funds as requested by contracting agency for payment of claims.
   3. Periodically reconcile and balance accounts.
4. Contracting Agency Responsibility
   1. Provide information and communication to all employees on Flex Plan benefits, regulations, and requirements.
   2. Provide individual counseling, advice and information on Flex Plan accounts.
   3. Receive payroll reduction information and maintain and update Flex Plan account balances.
   4. Receive, approve and process claims for reimbursement.
   5. Distribute claim reimbursement funds to employees.
   6. Provide District and employee with reports and records of account activity and balances.

LIMITATIONS

The Flex Plan is established under authorization of the Internal Revenue Code.  Limitations on amounts included in certain accounts or types of claims for inclusion in the plan are limited to those allowable under the Internal Revenue Code.

IMPLEMENTATION

Initial implementation of the Flex Plan shall be January 1, 1988.