The Office of the State Comptroller (OSC) has announced modifications to the Dependent Care Account Plan (DCAP) and the Medical Flexible Spending Account Plan (MEDFLEX) for 2020.
As a result of the COVID-19 pandemic, the OSC announced the following modifications:
- Expenses incurred during 2019 may be submitted for reimbursement through June 30, 2020. The previous deadline was March 31, 2020. Claims for reimbursement of 2019 expenses received after June 30th will be denied and unused funds (other than $500 eligible for carryover in the MEDFLEX) will be forfeited.
- Employees that did not sign up to participate in MEDFLEX in 2020 will now have the opportunity to enroll in the plan for the remainder of the current Plan Year without demonstrating a qualifying status change.
- Employees who elected to participate in the MEDFLEX for Plan Year 2020 can on – a prospective basis only – revoke an election, make a new election, decrease or increase an existing election. For example, an employee that elected a $2000 MEDFLEX amount for 2020 in anticipation of a medical or dental procedure that has been canceled or delayed can reduce that election for the remainder of the year. Please note: The option to revoke or decrease an existing election is not available where a MEDFLEX Participant has already received Benefits in excess of his or her year-to-date Salary Redirections to the Plan.
- For MEDFLEX, the IRS has raised the amount of unused funds that can be carried over from one plan year to the next to $550. The State has adopted this change for the 2020 Plan Year, and it will take effect in 2021.
- On a prospective basis, employees may revoke an election to participate in the DCAP, make a new election, or decrease or increase an existing election without regard to the qualified status change rules.
- All mid-year election/enrollment changes must be submitted to Progressive Benefits Solutions (PBS). Forms for 2020 mid-year elections for the MEDFLEX, CO-1306a, and DCAP, Form CO-1310a, are posted online at http://www.ctpbs.com. The forms may be returned as follows: Email: firstname.lastname@example.org; Fax: 203-974-4898; or S. Mail: Progressive Benefit Solutions, 14 Business Park Drive #8, Branford, CT 06405.
For more information, contact: Progressive Benefits Solutions at 1-866-906-8023