FSA notice to employees 2-15-21
Healthcare and/or Dependent Care Flexible Spending Accounts
Plan Years 2020 and 2021
Notice to Employees - February 15, 2021
Our records show that you were enrolled in a Healthcare and/or Dependent Care Flexible Spending Account (FSA) during plan year 2020 or may be currently enrolled in one of these accounts for plan year Jan. 1 – Dec. 31, 2021.
Just before the end of 2020 and with many of the COVID-related provisions affecting benefits about to or having already expired, the Consolidated Appropriations Act of 2021 was passed. This legislation includes the COVID-Related Tax Relief Act of 2020, which provides increased flexibility for Healthcare FSAs and Dependent Care FSAs for the calendar years 2020 and 2021.
While these provisions are optional for employers to adopt, Kent State University will take advantage of this flexibility in order to provide optimal opportunity for our employees to maximize dollars set aside in a healthcare and/or dependent care FSA during 2020 that went unused due to challenges in utilizing childcare or healthcare services during the COVID Pandemic.
Below is a brief overview of the provisions we will adopt to extend the 2020 grace period and to permit changes to healthcare and dependent care accounts for 2021:
Extended Grace Period
For the 2020 plan year, the grace period for Healthcare FSA and Dependent Care FSA funds is extended 12 months or through Dec. 31, 2021 for any unused funds from plan year 2020.
For plan year Jan. 1 through Dec. 31, 2021, employees may modify their Healthcare FSA or Dependent Care FSA elections on a prospective (going forward) basis at any time during the year. No qualifying event is required. To initiate a change in your election amount for 2021, please complete the form here and return to the Employee Benefits Office by email to email@example.com or fax to 330-672-5447.
You may continue to use your PNC Debit Card or submit paper claim forms as usual. If you have money remaining in your healthcare or dependent care account from 2020 and have also established an account for 2021, the funds will pull from the 2020 balance first before utilizing 2021 funds.
These changes referenced above are effective immediately. Should you wish to inquire upon your FSA balance with PNC Bank, you may contact PNC customer service at 844-356-9993 or log into your PNC account at https://participant.pncbenefitplus.com/login.aspx.
For all other questions related to this matter, please contact Employee Benefits at 330-672-3107 or firstname.lastname@example.org.