COMPTROLLER'S MEMORANDUM NO. 99-40

OCTOBER 8, 1999

TO THE HEADS OF ALL STATE AGENCIES

I. INTRODUCTION

The purpose of this memorandum is to (1) advise of the annual open enrollment for the Dependent Care Assistance Program (DCAP), and (2) restate the DCAP payroll, enrollment, and election change processing procedures.

II. ANNUAL OPEN ENROLLMENT

The open enrollment for the 2000 DCAP plan year is scheduled to occur during the month of November; the program's administrative services provider, Colonial Life & Accident Insurance Company, will conduct informational sessions throughout the state for employees; the statewide schedule is attached.

Once again, the Office of the State Comptroller will be providing agencies with DCAP brochures to be distributed to employees with paychecks dated October 22, 1999. The DCAP brochure will inform employees of the open enrollment period and will include the statewide schedule of informational sessions. The brochure is the only statewide communication regarding the 2000 plan year enrollment that will be issued to employees; your cooperation is, therefore, essential in distributing the brochures to employees. Agencies will be provided with a sufficient supply of brochures to incorporate within their new employee orientation materials; new employees have thirty-one days from date of hire in which to enroll in DCAP.

Employees interested in participating will be responsible for obtaining the necessary enrollment applications and meeting all associated deadlines. Applications may be obtained at the informational sessions or by contacting Colonial Life & Accident Insurance Company. Employees who fail to return the application before the deadline, will be denied participation in the program; no late applications will be accepted; no exceptions will be made.

III. PROCESSING PROCEDURES

A. Enrollment Procedures:

Colonial Life & Accident Insurance Company is responsible for the enrollment of eligible employees who wish to participate in DCAP. Employees are entitled to enroll in DCAP during one of the following periods:

1. The annual open enrollment period;

 

2. Within thirty-one days of the hire date; and

 

3. Within thirty-one days of a change in family status which makes the employee eligible to participate.

Please direct employees to a Colonial Life & Accident Insurance Company representative at (860) 290-6633 for enrollment information and election forms.

B. Payroll Procedures:

As stated in Comptroller's Memorandum No. 96-62, dated December 13, 1996, the payroll processing of DCAP accounts is performed by the Comptroller's Retirement & Benefit Services Division, Employee Benefits Unit, formerly Pre-Tax Programs Unit. Agencies are not responsible for processing DCAP enrollment applications for payroll purposes; they will, however, be provided with a payroll report at the conclusion of the DCAP open enrollment period which will indicate the employees of the agency who are enrolled

C. Election Changes:

Once enrolled, changes in elections are allowed only under the following circumstances:

1. Participant terminates employment;

 

2. Participant experiences a family status change, such as marriage, divorce, death of a spouse or dependent, birth or adoption of a child, changes in spouse's employment status.

Participating employees who wish to make an election change must file a Dependent Care Change Form with the Employee Benefits Unit within thirty-one days of the change in status. Dependent Care Change Forms must also be filed for terminating employees. Employees may obtain change forms by contacting Colonial Life & Accident Insurance Company at (860) 290-6633

IV. CONCLUSION

Your anticipated assistance in distributing the 2000 DCAP brochures and making the program accessible to your agency's employees is appreciated. The DCAP program not only assists employees in managing their dependent care expenses while reducing their taxable income, it saves the state money as well.

Questions concerning DCAP may be directed to the Employee Benefits Unit at (860) 702-3543.

NW/km

Back to Comptroller's Home Page
Back to Index of Comptroller's Memoranda