University Times

The U.S. Department of the Treasury recently approved an extension period for participants in employee flexible spending accounts (FSAs) for health care and dependent daycare spending accounts. As a result, participants will have more time to spend funds that may remain in their FSA. Pitt participants were notified of the change by letter to their home addresses in July.

Under the prior regulations, participants who elected an FSA for the 2004-2005 plan year had to incur the eligible expenses between July 1, 2004, and June 30, 2005, and submit these expenses for reimbursement any time up to 12 months after the plan year.

Under the new ruling, participants have until Sept. 15, 2005, to incur an expense for the plan year that ended June 30, 2005. This two and a half month extension provides participants with additional time to incur an expense and use the contributions remaining in their health care and/or dependent day care account.

Expenses still must be submitted to EBDS, the third-party administrator of the spending accounts, for reimbursement no later than June 30, 2006. During this extension period, participants must submit the designated paper claim to EBDS. The submission form may be downloaded at http://www.hr.pitt.edu/forms.htm and reproduced as necessary.

Benny Cards cannot be used during the extension period for expenses to be applied to unused balances for the plan year ending June 30, 2005.

For questions, call EBDS at 800/207-9310.