Flexible Spending Plan

The St. Charles City-County Library District utilizes Section 125 and 129 of the Internal Revenue Code to provide employees with a Flexible Benefits Plan.   

A Flexible Benefits Plan allows eligible participants to pay medical or dental premiums on a pre-tax basis and make pre-tax contributions to medical or dependent care expense spending accounts.   Participants are subject to eligibility and administrative rules of the plan, which may be amended during the plan year or as IRS regulations change.  

Medical Spending Accounts:  $2,500 annual contribution maximum.  Participants may incur expenses through the grace period ending 3/15 and may submit expenses up to 105 days after the plan year ends.  Unused balances are not reimbursed.   Medical Spending Accounts are only available to full time employees who are eligible to participate in the Library District’s medical plan.   (IRS Notice 2013-54)

Dependent Care Accounts:  $5,000 annual contribution maximum for married filing jointly or $2,500 for single or married filing separately.   Participants may submit expenses up to 105 days after the plan year ends.   Unused balances are not reimbursed.  Part time employees holding budgeted positions of 17.5 hours or more per week are eligible to enroll in the DCAP Accounts.

The plan year shall run from January 1st to December 31st of each year.  Participants must re-enroll in the Flexible Benefits Plan each year by completing a new enrollment form during the annual open enrollment period.  Employee contribution levels to the medical or dependent care spending accounts may change during open enrollment.  The District will notify all eligible employees of the annual open enrollment period. New employees may participate in the Flexible Benefits Plan on the first day of the month following hire date or on the hire date if it is the first day of the month.

The District shall pay administrative fees connected with this benefit but will not be responsible for payment of benefits placed under the FSA unless such benefits are agreed to under separate policies.

The District shall comply with Section 125 and 129 to set up a separate account or accounts to disperse reimbursement funds or cover eligible claims.   Employees may not under the provisions of Section 125 and 129 transfer monies between accounts.

Disbursements of unused balances may be distributed equally to all participants using the flexible spending accounts in accordance with Section 125 and 129.  However, no amount less than $5.00 per employee shall be dispersed.  

(Revision Approved 12/8/08, 11/13/12, 12/10/2013)