Heathcare policy & Benefit services division header

DIVISION MEMORANDUM 2016-08

TO THE HEADS OF ALL STATE AGENCIES

October 12, 2016

ATTENTION:   Personnel and Payroll Officers, Chief Administrative and Fiscal Officers, and Business Managers
SUBJECT:   Update on Open Enrollment for Dependent Care Assistance Program and Medical Flexible Spending Account Program for Plan Year 2017

 

 

I. INTRODUCTION

The purpose of this memorandum is to announce the availability of a new method for employees to complete open enrollment for the Dependent Care Assistance Program (DCAP) and the Medical Flexible Spending Account Plan (MEDFLEX), and (2) publicize the Qualified Transportation Account (QTA) program. These programs allow participants to pay for eligible expenses on a tax-free basis.

II. ANNUAL OPEN ENROLLMENT

The open enrollment period for the 2017 Plan Year for the DCAP and MEDFLEX began on Saturday, October 1, 2016, and is scheduled to end on Monday, October 31, 2016. As a new initiative the plans' administrator, Progressive Benefit Solutions (PBS) will provide an online tool as an additional way for employees to complete the open enrollment process.

III. PROCESSING PROCEDURES

A. Online Open Enrollment Process

Employees that wish to do so can still complete the paper forms and return them to PBS by mail, fax or email. Those who want to use the online method should go to the PBS website, www.ctpbs.com,  and clink on the link to “enroll online”. Follow the prompts to enroll in the plans of your choice.

Most employees who are eligible to participate in these programs should be able to use the online enrollment process. PBS has an eligibility file with the employee numbers and basic details of those eligible to participate in these programs. If your name/employee number is not in the database, you will not be able to enroll online and will need to fill out a paper form. If you are planning to retire during Plan Year 2017, you will also need to fill out a paper enrollment for the 2017 Plan Year.

B. MEDFLEX Maximum Amount

Customarily, the IRS does not announce any increase in the maximum deduction amount for medical flexible spending account programs for the upcoming year until the 3rd or 4th week of October. For MEDFLEX participants, the online enrollment offers the ability to select “Maximum Amount” as your annual election for 2017. In the event that the maximum limit for 2017 is increased after you have enrolled you will be automatically set up for the maximum deduction.

Online open enrollment will be live until  midnight on October 31, 2016. All paper forms must be sent to PBS by fax or email by October 31, 2016. Forms sent by mail must be postmarked by that date.

C. Open Enrollment Forms:

Form CO-1306 should be used to enroll in MEDFLEX. For DCAP enrollment Form CO-1310 should be used. The QTA enrollment form is CO-1312 and can be submitted at any time. Employees may obtain open enrollment forms from the PBS web site: www.ctpbs.com  or by contacting PBS toll free at 1-866-906-8023.

VI. CONCLUSION

These benefits help employees save money on necessary expenses by reducing their taxable income. Please make sure that your agency's employees get this information about the availability of online enrollment for 2017.

Questions concerning the DCAP and MEDFLEX open enrollment period or the QTA may be directed to PBS at 1-866-906-8023. Questions pertaining to this memorandum may be directed to the Healthcare Policy & Benefit Services Division, Employee Benefits Unit at (860) 702-3570.

 

Very truly yours,

Thomas C. Woodruff, Ph.D., Director

Attachment - Poster

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