Q.- An employee is retiring in July. He elected a $3,300 FSA contribution. Can he be reimbursed for the full election even though the total amount will not have been deducted from his pay on the day he retires? Will he have to pay us the remaining amount after his retirement?
A.- He will be able to claim the entire elected amount ($3,300) for expenses incurred during the plan year before the date of his retirement. This is the case even though he will not have contributed the full $3,300 to the plan. If he has underspent his FSA, he should be given the opportunity to continue FSA coverage under COBRA. If he elects and pays the COBRA premium, he will be able to be reimbursed for expenses incurred after his retirement date.
Benefit Allocation Systems (BAS) provides best-in-class, online solutions for: Employee Benefits Enrollment; COBRA; Flexible Spending Accounts (FSAs); Health Reimbursement Accounts (HRAs); Leave of Absence Premium Billing (LOA); Affordable Care Act Record Keeping, Compliance & IRS Reporting (ACA); Group Insurance Premium Billing; Property & Casualty Premium Billing; and Payroll Integration.
MyEnroll360 can Integrate with any insurance carrier for enrollment eligibility management (e.g., Blue Cross, Blue Shield, Aetna, United Health Care, Kaiser, CIGNA and many others), and integrate with any payroll system for enrollment deduction management (e.g., Workday, ADP, Paylocity, PayCor, UKG, and many others).