Updated 5/2014


Flexible Spending Plan

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Flexible Spending Accounts

How The Plan Works

Health Care Flexible Spending Accounts

Dependent Care Flexible Spending Account

Premium Only Plan

Reimbursement forms


Flexible Spending Accounts

Regular full-time or regular part-time employees can set aside pre-tax dollars for reimbursement of non-reimbursable health care expenses (i.e., not paid by the insurance plans) or dependent care. A fixed amount determined by the employee is deducted from your paycheck before deductions for income and social security taxes are calculated, and kept in an account. Checks are produced weekly to reimburse employees for their submitted eligible expenses. Employees who choose to participate in the flexible spending accounts must keep in mind that the money deposited must be used during the plan year or it will be forfeited, as described below.

The plan offers two different spending accounts:

1) for the reimbursement of health care expenses (excluding insurance premiums).  Maximum allowed per the IRS is $2500.

2) for the reimbursement of dependent care expenses. Maximum allowed per the IRS is $5000. 

These accounts are administered by BAC.

An annual Open Enrollment period allows employees to re-enroll or make changes in their spending accounts. Changes are not allowed outside Open Enrollment unless the employee experiences a life status change such as: marriage or divorce; birth or adoption of a child; termination or commencement of a spouse's employment; death of a spouse or child; loss of eligible status for employee benefits.

Re-enrollment is required each year for participation in the next plan year.

The plan year is from July 1 to June 30 with an additional grace period for dental, vision and dependent care expenses from July 1 - August 31.

Plan information can be found here.

See "How the Plan Works" below for more information.

How the Plan Works

During Open Enrollment, an employee who chooses to participate in a flexible spending account elects the monthly dollar amount for pretax payroll reduction. This amount is deposited into the flexible spending account on a monthly basis. After the employee incurs and pays out of pocket expenses, the employee submits a copy of the receipt and a claim form to BAC for reimbursement from the account. Alternately, for the healthcare flexible spending account only, the employee may obtain a debit card that will come preloaded with the employee's chosen annual election. As always, the employees that participate in flexible spending are required to keep all receipts for these qualified purchases - but in the case of the debit card user, they only need to turn them in to BAC when requested.

Expenses are claimed based on the date services were provided, not on the date services are paid. Qualified expenses incurred during the plan year (July 1 - June 30) are reimbursable. In addition, a grace period has been instated which allows the employee to continue incurring qualified expenses through August 31 as part of the previous July 1 - June 30 plan year. Expenses incurred must be filed as claims prior to September 30, each plan year. Any expenses incurred for flexible spending that have not been submitted for reimbursement by September 30 are considered unclaimed funds and will be forfeited.

Health Care Flexible Spending Account

This account allows employees to set aside pre-tax dollars for out-of-pocket medical, prescription and dental expenses (amounts that have not already been paid or reimbursed by insurance) such as deductibles and coinsurance, copayments, vision expenses and other health care related expenses.  Over-the-counter medications (except insulin) are no longer eligible for reimbursement.  Over-the-counter medications with a prescription, will continue to be reimbursable through your flexible spending account.

Dependent Care Flexible Spending Account

This account allows an employee to pay for child care or for the care of a disabled child or elderly dependent parent living with the employee, with pre-tax dollars. Because total family income is one factor in determining whether this plan will provide favorable tax treatment over the current child care tax credit, please review examples provided in the Flexible Spending Summary Plan Description.

Premium Only Plan

Seattle Pacific University makes it possible to pay benefit premiums such as medical, dental and vision with pretax dollars through the Premium Only Plan. Participation is automatic unless the employee completes a waiver form.

During the annual Open Enrollment employees are automatically re-enrolled in the Premium Only Plan, unless the employee completes a waiver form at that time.