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Flexible Spending Arrangement (FSA)
COVID-19 FSA Plan Changes (temporary)
In late December 2020, the federal government passed COVID stimulus legislation that included several relief provisions for Flexible Spending Account (FSA) participants. The provisions are intended to help employees access unused FSA balances who made decisions to participate and contribute to a health care or dependent care FSA prior to 2020 but have been unable to utilize eligible services or care during the COVID pandemic.
Below is an outline of these temporary changes:
- Unrestricted carryover through 2022 – Plans with the carryover feature on their 2020 and 2021 plans will be amended to allow carryover of ALL unused amount to the subsequent plan year for their health and dependent care FSAs. This temporary amendment applies to plan years ending in 2020 and 2021 – can carryover balances for 2020 into 2021, and 2021 into 2022.
- Allowances for Terminated Employees – Health care FSA participants who terminate their employment during the 2020 or 2021 plan year can spend down their unused balances for expenses incurred through the end of the plan year in which the termination occurred. This temporary amendment applies to plan years ending in 2020 and 2021.
- Election Changes without Qualifying Status Events – Employees can elect prospective changes in health care and dependent care FSAs for plan years ending in 2021 without a corresponding change in status event. Employees may not reduce their elections below the amount already reimbursed or contributed to date. This temporary amendment applies to plan year ending in 2021.
To make changes:
Change contribution amount (or stop contributions)
Submit the form to Pierce County Benefits by routing or to pcbenefits@piercecountywa.gov..
The Health Care Flexible Spending Arrangement (FSA) allows you to set aside pre-tax dollars to pay for your eligible out-of-pocket health care expenses. Eligible medical, vision and dental expenses such as deductibles, co-payments, co-insurance, prescribed over-the-counter drugs, eye glass hardware and other out of pocket expenses incurred by you or your eligible dependent may qualify.
Carryover Feature
The carryover feature allows participants to roll over up to $550 of unused Health Care FSA funds to use the subsequent plan year. Any Health Care FSA funds in excess of $550 will be forfeited.
Processing a Claim
The Health Care FSA is pre-funded, meaning you will have access to your full annual election amount at the beginning of the plan year, regardless of the amount you have contributed. The Navia Benefits debit card is loaded with the participant’s full election amount and pulls funds directly from their FSA account for eligible expenses, much like a debit card. Participants can also request reimbursement of out-of-pocket expenses through the Navia Online Claim Submission tool, the MyNavia App, or by submitting a Navia FSA claim form, with attached itemized documentation, to Navia Benefits by email, fax or mail.
The Day Care Flexible Spending Arrangement (FSA) allows employees to pay for out-of-pocket, work-related dependent day care costs with tax-free dollars. Eligible day care, preschool, before and after school care, and day camps (for children who live with the participant and are 12 years old or younger) and elder care (for a qualifying tax dependent who is physically or mentally incapable of self care) out-of-pocket expenses may qualify.
You must claim all elected funds by the end of the run-out period. After the run-out period is complete, unused Day Care FSA balances will be forfeited.
Processing a Claim
Since the Dependent Care FSA is not pre-funded, participants may only submit for reimbursement up to the amount they have contributed to their account. However, Navia will approve day care services up to one month in advance. For example, if it is currently the month of July, a participant could submit for day care services that will be incurred in the month of August. Participants can request reimbursement of out-of-pocket expenses through the Navia Online Claim Submission tool, the MyNavia App, or by submitting a Navia FSA claim form, with attached itemized documentation, to Navia Benefits by email, fax or mail.
Adjusting an FSA Account Mid-Year
Employees may be able to adjust their FSA account if they meet specific IRS requirements. The employee must have experienced an IRS defined change in status and the FSA adjustment must be consistent with the change in status. There are detailed IRS rules on when a change in election is deemed to be consistent with a change in status. The Benefits department reviews all changes to ensure compliance with IRS rules.
To request a mid-year adjustment to your FSA account, submit a Navia FSA Employee Change in Status form to the Risk Management - Benefits.
For more information regarding your FSA account and the claim process, please contact Navia Benefit Solutions. Use Employer Code: PCY.
| Examples of Life Event Changes | Process to Use |
|---|---|
| Add or remove dependent | Life Event Change |
| Name change | |
| Address change | |
| Phone change | |
| Etc. | |
| Termination or commencement of employment by spouse or dependent | Employment Change |
| Switching from / to part-time employment by employee, spouse, or dependent | |
| Hours reduction, strike or lockout | |
| Leaving employment | |
| Leave-of-absence | |
| Etc. |
Contact
Phone: (253) 798-7479
Phone: (253) 798-7462
8:00 a.m.–4:30 p.m.
955 Tacoma Ave S # 303, Tacoma, WA 98402