Flexible Spending Accounts (FSAs)

Flexible Spending Accounts (FSAs) allow you to set aside dollars on a pre-tax basis to pay for certain expenses related to health or dependent care.  This provides an immediate tax break to cover out-of-pocket health and dependent care expenses.  These benefits are available to CASA, SPAP, District 1201, Local 634, and Non-Represented employees.

When employees purchase benefits on a pre-tax basis, their compensation is reduced for purposes of calculating wages subject to federal and F.I.C.A. taxes and, in most states, state income tax.  For residents of Pennsylvania, state taxes are saved on Health Care FSA elections, but not Dependent Care FSA elections.  Based on 2005 tax rates, and depending on an employee's employee's individual tax bracket, potential savings range from 17.65% to 35.65% on each pre-tax dollar.  For FSA and CRA forms, see our Voluntary Benefits Forms Page.

Commuter Reimbursement Accounts (CRAs)

Commuter Reimbursement Accounts (CRAs) allow employees to use tax-free dollars to pay for eligible mass transit, parking, and van-pooling expenses.  These benefits are available to CASA, SPAP, District 1201, Local 634, and Non-Represented employees.  This account can be stopped at any time; the employee does not need a qualifying life event.  The employee can also change the election amount at any time, subject to plan limits.  Please be advised, however, that the IRS does not permit reimbursement for Commuter expenses older than 180 days from the date incurred. For example, if you pay $50 for your March, 2009 transit expenses, those expenses must be claimed prior to September 30, 2009, in order to be eligible for reimbursement.

Further down:

• How To Make Contributions
• FSA/CRA Debit Card

Visit www.Flex125.com and select "Employees" for more information about the FSA plan, a list of eligible expenses, forms, etc. 

How To Make Contributions

Elections are made as noted for these accounts:

• For Health Care and Dependent Care FSAs, elections are made per calendar year and are taken from your paycheck each pay period on a pre-tax basis.
• For the Commuter Reimbursement Accounts, elections are made per month and are taken from your paycheck each pay period on a pre-tax basis.  Elections may be changed at any time during the year.

There is also a carryover feature that allows you to submit claims incurred during the first 2 1/2 months of 2009 against any 2008 FSA balances.  This makes it easy for you to use your entire contribution.

FSA/CRA Debit Card

All participants in the Health Care and/or Dependent Care FSAs and/or the CRAs will receive a debit card after enrolling.  You can use this card to pay for many of your various out-of-pocket eligible expenses.  It's used just like a bank debit card - you present it at the time of payment and the cost of the service is automatically deducted from your applicable account.

This card may be used for all three Flexible Spending Accounts/Commuter Reimbursement Accounts and will bear the School District of Philadelphia's logo.  If the provider/vendor does not accept debit cards, a paper claim will need to be mailed or faxed and you will receive a reimbursement check in the mail.  See Spending Account Claim Form.

Make sure you save your receipts for all debit card purchases, in case you are required to provide documentation for your transactions at a later date.  Using this card is convenient, it greatly reduces the need to submit claim forms and receipts, and you don't have to pay for expenses up-front.  Because the debit card deducts the cost right from your account balance, you don't have to wait for a check in the mail.

You can use the debit card for all eligible expenses incurred during the plan year (January 1 through December 31, 2009)  Claims incurred from January 1, 2009 through March 15, 2009 that are applied to your remaining 2008 balance must be submitted using a paper claim form.

Please Note:  The debit card can only be used up to your available account balance, which varies by account.  Debit charges that exceed this balance will be denied at the time of use.  More information will be included with your debit card.