Flexible Spending Plan
for Health-Care & Dependent-Care Expenses

FORMS: Flex Plan Enrollment Form

              Request for Reimbursement Form (to submit receipts)

The Flexible Spending Plan is a program that allows you to have a designated dollar amount of your paycheck put aside and held in an account until you need to use it for out-of-pocket healthcare or dependent-care expenses. The money is deducted before taxes are paid, allowing you to apply 100 percent of the money you earn and put aside toward eligible expenses.

Is this plan similar to the tax shelter plan available to pay the employee portion of the insurance premium with pre-tax dollars?
Yes. In fact it is a part of the same IRS code (Section 125) used to shelter premium costs. To better understand how this tax code allows you to save money, review the information titled "Tax Shelter Plan" in the "How to Enroll" section of your Benefits Overview Booklet. Or review it on-line (administrative | classified | licensed ).

Even though the flexible spending plan and the monthly contribution premium deduction program are part of the same IRS code, they are different 4J District programs. The monthly contribution premium deduction plan, in which you enroll during September when you sign up for health insurance, is managed by the district. The flexible spending program is administered by Manley Services. This program is based on a January through December calendar year (rather than the academic year) so it is consistent with health coverage deductible and stop loss amounts.

What kinds of out-of-pocket expenses are eligible?

• Co-pays (physician, prescription, etc.)
• Dental expenses (co-pays or non-covered expenses)
• Vision expenses (glasses, contacts, lasik eye surgery)
• Day-care expenses (This can be more advantageous than the child-care tax credit now offered by the IRS. Other expenses are also eligible.)

More complete information about eligible expenses is available on the Manley Services web site, the organization that manages the district’s flexible spending plan.

Is the same amount taken out of my paycheck every month?
Yes, you must select a fixed amount that is deducted each month for one year. The amount accumulates during the year and can be used only during the year it is deducted. At the end of the year, you can specify a new monthly deduction amount. Dependent-care and health-care deductions are held in separate accounts so you must specify the type of expense and amount to be deducted for each category.

How do I get reimbursed?
It's easy. The school district contracts with Manley Services to manage the flexible spending account program. When you have incurred an eligible out-of-pocket expense, simply send a Reimbursement Request Form (downloadable from Manley's site), along with your bill or receipts to Manley Services.

What if I don't use up all the money in my spending account during the year?
This is the tricky part of participating in the program. Any unused money in the account at the end of the calendar year is forfeited, by IRS law, to the employer. For this reason, it is important to carefully analyze your needs. For example, child-care expenses may be very predictable, allowing you to specify an exact amount to be deducted. Health-care expenses may not be as predictable. You can base your deduction on previous years’ expenses, knowing that you can use excess amounts toward the end of the year to buy new glasses or other items you might have waited to purchase.

Is there a cost to participate in the program?
No. The flexible spending account program is a no-cost benefit the district offers its employees to help offset the increasing cost of health and child care.

What do I have to do to participate?
If you are a current employee, you can participate by signing up during the program’s open enrollment period. The open enrollment period for the flexible spending program is later in the year because the flexible spending program’s plan year runs from January 1 to December 31. For this reason there are no enrollment forms in this packet. You will receive information from the Employee Benefits Office about enrolling prior to the enrollment period. New employees can enroll at the time of hire. (When you complete your enrollment form, ignore the check-off box for the premium deduction plan since Manley does not administer that program for the district.)

Once I'm participating, how can I access my account information?
Once you enroll, Manley will mail you a personal identification number (PIN) which you can use to enter the MyFlex area of their web site.  This feature allows you to:
• Access information on the most recent reimbursement payments, including payment dates and amounts
• See payment details, including account type and form of payment
• View recently submitted claims along with their payment status
• Check account balances, annual elections, and deposits 

How do I make changes to my account information (address, election amounts, etc)?
All changes must be directed to the Employee Benefits Office (phone: 541-687-3491).  They will pass along the appropriate information to Manley Services as well as other benefits carriers that may be affected.

If you would like more information about the program before deciding to enroll, visit the Manley site or call Manley Services at 485-7488 and ask for Stan Manley at ext. 102 or Kim Apo at ext. 106.