BOSTONCOLLEGE

BENEFITS OFFICE

FLEXIBLE SPENDING ACCOUNT

PLAN HIGHLIGHTS AND ENROLLMENT FOR 2012

If you are a benefits-eligible faculty or staff member and you wish to participate in the Flexible Spending Account (FSA) plan during calendar year 2012, you need toenroll by December 16, 2011. For those unfamiliar with the plan, the following summary information may be helpful.

Flexible Spending Accounts allow you to save taxes on the money you spend for uncovered medical/dental and dependent care expenses. You can set aside money through payroll deductions throughout the year to pay for predictable expenses, and amounts are deducted from your gross pay before federal, state and Social Security taxes are withheld. Because you pay no taxes on your FSA deposits, you effectively increase your spendable income over the year.

Reminder: Over-the-counter medicinesand drugscan be reimbursed only if prescribed by a physicianand can no longer be purchased using the FSA Debit Card. This restriction does not apply to medical supplies such as insulin or other health care expenses such as medical devices, eyeglasses, contact lenses, bandages, co-pays and deductibles. For more information, please visit

PLAN HIGHLIGHTS

  • Two accounts are available: a Medical/Dental (Health Care) Account and a Dependent Care Account. During Open Enrollment, you decide the amount you want deposited into either or both of the FSA accounts for the year. That amount is deducted from your paychecks in equal increments throughout the year.
  • Once you choose your FSA deposit amount, you may not change or stop your deductions during the year unless your family status changes (due to marriage or birth of a child, for example), and the action must be consistent with the status change.
  • The Medical/Dental Account is used to pay for any medical and dental expenses that are not covered by insurance plans. Some of the expenses eligible for reimbursement are: deductibles and copayments under health insurance and dental plans; orthodontic care; chiropractic care; eyeglasses and contact lenses. The IRS has indicated that expenses for solely cosmetic reasons or for the maintenance of general health and over-the-counter medications not accompanied by a prescription(see Reminderabove) are not eligible expenses for medical care. Such non-coveredexpenses would include, but not be limited to, teeth bleaching, rogaine, and vitamins (unless prescribed).Premiums you pay for medical and dental coverage, whether for yourself, your spouse, or a dependent, are not eligible expenses. The maximum contribution is $5,000 per year, and the minimum is $100 per year.
  • The Dependent Care Account is used to pay for certain dependent care expenses incurred because you (and your spouse, if married) are employed. Eligible expenses include charges for the care of dependent children age 12 and under or for elderly or disabled family members who are dependent on you for financial support. The maximum annual contribution is $5,000 and may be less under certain circumstances (e.g., the limit is $2,500 if you are married filing separately).

BOSTONCOLLEGE

BENEFITS OFFICE

  • You submit claims and supporting documentation for expenses incurred during a plan year for payment from the appropriate account. Claims are submitted toCrosby Benefit Systems, the third-party administrator, and reimbursements are paid to you directly. [Also see accompanying information about the “Debit Card” option for Health Care expenses and the “Pay the Provider” option.]
  • Under a “grace period” provision, any unused account balance at the end of 2012 may be carried forward for up to 2 ½ months into 2013 (through March 15). This means you will be able to incur expenses during that period and submit claims using any unused funds from 2012. Accounts will remain open through March 31, 2013, to allow time to submit claims for expenses incurred during the 2012 calendar year and the grace period.
  • You cannot switch funds between accounts.
  • If you terminate employment, your deductions will stop and you may not submit claims for services incurred after your termination date, unless you continue to make the same monthly contributions by personal check through the Benefits Office (for the Medical/Dental Account only). If you go on an unpaid leave, you may continue to participate in the plan. Contributions that are due can be made by after-tax payments during the leave or, if possible, with catch-up payroll deductions after the leave ends.
  • IMPORTANT:Once the period for submitting claims expires, any funds remaining in your accounts must beforfeited, in accordance with Internal Revenue Service regulations. This is called the "useit or lose it" rule. Therefore, it is important to estimate your expenses carefully when you enroll in the plan.

ENROLLMENT

The Enrollment Period for the plan year beginning January 1, 2012, is November 14through December 16. If you participated in 2011 and will also participate in 2012, do not throw away your Debit Card.Your plan information will be updated on your existing card and can be used through 2012.You will not be sent a new Debit Card this year unless you are participating for the first time. If you are a new Medical FSA participant, you will receive your Debit Card the first week of January 2012, if you enroll by December 1st.

If you are currently eligible to participate and you do not enroll during this period, in most cases you will not be able to enroll until the next open enrollment period for the 2013 plan year.

For more information andto enroll, go to .You may also view a Crosby informational webcast at the ‘FSA with Debit link).

TO ENROLL: For complete enrollment information, please refer to the “Instructions for Online FSA Enrollment” which can be found on the Benefits website. [If you received this Memo via campus mail it is included in the mailing.] You will need an e-mail address to enroll; if you do not have one, please contact the Benefits Office, x2-3329, to make alternate arrangements.

If you have questions, please call the Benefits Office at x2-3329 or e-mail .

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