Cafeteria Plans/FSAs

[Guidance Overview] Flexible Spending Accounts Can't Reimburse OTC Drugs Without Prescription, Says IRS
Excerpt:"The rules issued September 3 involve a section of the health care reform law that sharply restricts FSA reimbursements for over-the-counter medications such as nonprescription pain relievers, cold medicines, antacids and allergy medications."(Workforce Management; free registration required)

Repeal Sought for FSA Cap
Excerpt:"New contribution limits imposed on health flexible spending accounts would be repealed under a pending House bill."(Investment News; free registration required)

[Official Guidance] Text of IRS Rev. Rul. 2010-23: Making Obsolete the Existing Revenue Ruling on Reimbursement of Drug Expenses by FSAs, HRAs, HSAs, MSAs (PDF)
1 page. Excerpt:"Because the definition of medical expenses has been changed, the Internal Revenue Service has concluded that the ruling position stated in Rev. Rul. 2003-102 is no longer determinative. Accordingly, Rev. Rul. 2003-102 is declared obsolete as of the effective date of section 9003 of the Affordable Care Act."(Internal Revenue Service)

[Official Guidance] Text of IRS Notice 2010-59: Most Non-Prescription Drugs Purchased After 2010 Cannot Be Reimbursed from FSAs, HRAs (PDF)
6 pages. Excerpt:"The Affordable Care Act, enacted in March, established a new uniform standard that, effective Jan. 1, 2011, applies to FSAs and health reimbursement arrangements (HRAs). Under the new standard, the cost of an over-the-counter medicine or drug cannot be reimbursed from the account unless a prescription is obtained. The change does not affect insulin, even if purchased without a prescription, or other health care expenses such as medical devices, eye glasses, contact lenses, co-pays and deductibles."(Internal Revenue Service)

New IRS Guidance on Health Care Reimbursement
Excerpt:"The IRS said that Notice 2010-59 provides guidance on new section 106(f) of the Internal Revenue Code, added by section 9003 of the Affordable Care Act. That section sets forth a new standard, effective January 1, 2011, for reimbursement of expenses for over-the-counter drugs from all workplace health plans . . . ."(PLANSPONSOR.com)

[Guidance Overview] Simple Cafeteria Plans under Health Care Reform (PDF)
Pages 4-5 of 6 pages. (Trucker Huss)

[Guidance Overview] Required Cafeteria Plan Amendments
Excerpt:"Internal Revenue Code Section 125 requires that a cafeteria plan be in writing and be adopted on or before the first day of the first plan year to which it relates. This applies to amendments to the plan as well. In proposed regulations issued in 2007, the IRS stated that if a cafeteria plan does not comply with applicable requirements regarding content and timing of adoption, then the plan is not a cafeteria plan and all employees'elections of non-taxable benefits are not effective."(Fisher&Phillips LLP)

[Guidance Overview] Employers Must Amend Cafeteria Plans by December 31 to Comply with Health Care Reform
Excerpt:"Any cafeteria plan that has allowed changes of election with respect to adult children in 2010 must be amended by Dec. 31 to conform to its operation."(Davis Wright Tremaine LLP)

[Guidance Overview] New Simple Cafeteria Plans (PDF)
4 pages. Excerpt:"The health care reform act, better known as the Patient Protection and Affordable Care Act of 2010 . . ., enacted a new form of cafeteria plan that is available to small employers starting in 2011."(Kushner&Company)

[Guidance Overview] Cafeteria Plans, HRAs and Health Care Reform
Excerpt:"This article will explain which PPACA requirements impact HRA and/or Cafeteria plans. In the chart . . ., we summarize the main requirements that apply to HRA and/or Cafeteria plans and provide the effective dates of the requirements. Rules that apply differently to grandfathered plans are noted under the effective date . . . ."(CCH INCORPORATED)

Flexible Spending Arrangement Participation Grows from 16.7% in 2007 to 20.4% in 2009
Excerpt:"In 2009, among individuals younger than age 65 with private health insurance, 20.4% had a flexible spending arrangement . . . for medical expenses, according to the Centers for Disease Control and Prevention . . . ."(Wolters Kluwer)

[Guidance Overview] What Will Health Reform Mean for HRAs, HSAs, and FSAs?
Some changes to those account-based plans will be effective January 1, 2011. (PLANSPONSOR.com)

Tricare to Allow Civilian Employers of Military Retirees to Offer Cafeteria Insurance Plans
Excerpt:"Tricare is allowing civilian employers of military retirees to offer a cafeteria-style supplemental health insurance plan so that'workers who elect to use their Tricare Standard benefit can buy coverage conveniently and with pre-taxed dollars,'The Colorado Springs Gazette reports."(Henry J. Kaiser Family Foundation)

[Guidance Overview] Simple Cafeteria Plans under Health Reform
Excerpt:"An employer may elect to exclude from the plan employees who have not attained the age of 21 before the close of the plan year, who have less than one year of service with the employer as of any day during the plan year, who are covered under a collective bargaining agreement . . . ."(Wolters Kluwer)

[Guidance Overview] Flexible Health Spending Accounts to Become Less Flexible Under Health Reform
Excerpt:"Under the new health care reform law, obtaining reimbursement for over-the-counter medications will become more difficult. The primary change: A doctor's prescription will be required beginning January 1."(Workforce Management; free registration required)

Changes Under Health Care Reform to the Cver-the-Counter Medicine Rules
Excerpt:"One provision that is effective fairly quickly is the change to the over-the-counter drugs/medicines rules in Flexible Spending Accounts (FSA), Health Reimbursement Arrangements (HRA) and Health Savings Accounts (HSA)."(TRI-AD)

[Guidance Overview] Simple Cafeteria Plans Boon for Small Employers
Excerpt:"In years beginning after Dec. 31, 2010, certain small employers'cafeteria plans can qualify as simple cafeteria plans and thus avoid the nondiscrimination requirements of a classic cafeteria plan under IRC Sec. 125(b)."(Wolters Kluwer)

[Guidance Overview] SIMPLE Cafeteria Plans Available in 2011; Owners Can Only Be Covered in C Corporations (PDF)
7 pages. Excerpt:"Simple cafeteria plans will be treated as meeting nondiscrimination requirements applicable to cafeteria plans if they meet minimum eligibility, participation, and contribution requirements. This safe harbor covers the regular cafeteria plan nondiscrimination requirement of section 125(b), the 25% concentration test, and the nondiscrimination requirements of 79(d), 105(h), and 129(d) applicable to group term life insurance, a self-insured health insurance or medical reimbursement plan, and dependent care assistance benefits (child care)."(Small Business Council of America)

[Guidance Overview] Limitation on Health FSAs Offered in Cafeteria Plans Under Health Reform
Excerpt:"Sec. 9005 of the Affordable Care Act concerns the limitations placed on health flexible spending arrangements (FSAs) offered in cafeteria plans. Effective for tax years beginning after Dec. 31, 2012, a health FSA will not be a qualified benefit under a cafeteria plan unless the plan provides for a $2,500 maximum annual salary reduction contribution to the FSA. If the plan does not specifically prohibit salary reductions in excess of $2,500, the benefit under the health FSA will not be qualified."(Wolters Kluwer)

[Guidance Overview] Flexible Spending Accounts under Health Care Reform (PDF)
2 pages. Excerpt:"This issue . . . focuses on two new requirements that will apply to health care flexible spending accounts (FSAs): prohibiting reimbursement of over-the-counter medications obtained without a prescription beginning January 1, 2011 and limiting annual contributions to $2,500 beginning January 1, 2013."(Seyfarth Shaw LLP)

[Guidance Overview] A Quick Review of Plan Amendments Required in 2010 (PDF)
Excerpt:"As we approach the midway point of 2010, plan sponsors should be aware of amendments that may be required to be made by the end of the year under the Pension Protection Act of 2006 (PPA), the Heroes Earnings Assistance and Relief Tax Act of 2008 (HEART Act), the Worker, Retiree, and Employer Recovery Act of 2008 (WRERA), and the Patient Protection and Affordable Care Act (PPACA)."(Sutherland Asbill&Brennan LLP)

Limitation on Health FSAs Offered in Cafeteria Plans Under Health Care Reform
Excerpt:"Effective for tax years beginning after Dec. 31, 2012, a health FSA will not be a qualified benefit under a cafeteria plan unless the plan provides for a $2,500 maximum annual salary reduction contribution to the FSA."(Wolters Kluwer)

[Guidance Overview] A New Era Begins for Employer-Sponsored Coverage After Healthcare Reform (PDF)
13 pages. Excerpt:"To help you understand your obligations as an employer/plan sponsor, we have provided a detailed discussion of health care reform as it relates to group health plans, beginning with a general timeline of the applicable provisions."(Alston+Bird)

[Guidance Overview] IRS Clarifies Rules Regarding Adult Dependents
Excerpt:"[I]f an adult child turns 27 in any month of 2010, a Health FSA/HRA cannot reimburse any 2010 expenses for that adult child. However, expenses for adult children who are 26 or younger as of the end of the calendar year may be reimbursed if incurred on or after March 30, 2010. . . . [P]articipants who add an adult child dependent can increase their current year Health FSA election."(Infinisource)

[Guidance Overview] Health Care Reform Reshapes Tax Code; Several Employee Benefit Provisions Affected
Excerpt:"[A]mounts paid for over-the-counter medications will no longer be reimbursable from health savings accounts (HSAs), Archer medical savings accounts (MSAs), health FSAs, or health reimbursement arrangements. . . This provision is effective for amounts paid or expenses incurred after Dec. 31, 2010."(Journal of Accountancy)

[Guidance Overview] Health Accounts'Limits for Over-the-Counter Medicines Under Health Reform
Excerpt:"[R]eimbursements for over-the-counter medicines through a health FSA, HRA, or other employer-provided accident or health plan may not be excluded from the employee's gross income. Also, distributions from an HSA or Archer MSA to pay for over-the-counter medicines may not be excluded from the employee's gross income and will be subject to additional penalty."(Wolters Kluwer)

New Health Law Means Changes in Flexible Spending Plans
Excerpt:"[S]tarting in 2013 the annual limit that any employee may contribute to these plans will go down, to $2,500, half the current maximum. The policy rationale for that change is simple. As the health law ushers in more comprehensive, affordable coverage, Kelly Traw, a principal at Mercer's Washington Resource Group, said the assumption was that employees would have less need for flexible spending accounts. And the revenue the government may get by limiting this tax break is meant to help finance the nation's health care overhaul."(The New York Times; free registration required)

[Guidance Overview] Limitation of Distributions from Health Accounts for Over-the-Counter Medicines
Excerpt:"The definition of qualified medical expenses, for purposes of reimbursements from health flexible spending arrangements (health FSAs) or health reimbursement arrangements (HRAs), and distributions from health savings accounts (HSAs) or Archer medical savings accounts (Archer MSAs), has been modified to include amounts paid for medicine or a drug only if such medicine or drug is a prescribed drug (determined without regard to whether such drug is available without a prescription) or is insulin."(Wolters Kluwer)

Flexible Spending Accounts Will Become Slightly Less Flexible
Excerpt:"Now, lawmakers have changed the way flexible spending accounts are treated in order -- they say -- to discourage wasteful health care spending at the end of the year. The government will now cap annual contributions to FSAs at $2,500 and consumers will no longer be able to use the accounts to purchase over-the-counter medications such as allergy medicine or aspirin without a doctor's prescription."(Henry J. Kaiser Family Foundation)

Reform Takes a Bite Out of Flexible Spending Accounts
Excerpt:"In 2013, the new health-reform law will limit the amount you can sock away in a flexible spending account (FSA) for health expenses to $2,500 a year, with annual increases reflecting cost-of-living adjustments. Today, on average, only a third of people offered FSAs contribute to them at all, according to Mercer, a New York-based consulting firm."(The Wall Street Journal)

Health Reform Provisions that Could Impact Consumer-Driven Health Plans (PDF)
3 pages. Excerpt:"The health care reform legislation approved by the 111th Congress (H.R.3590, now Public Law 111-148, as amended by the budget reconciliation bill, H.R.4872) will likely have a modest impact on consumer-driven health plans and their associated health care accounts (i.e., FSAs, HRAs, and HSAs). Earlier proposals that would have eliminated some of these options (particularly FSAs and HRAs) did not survive the legislative process. [The target page] is a description of the provisions that were included in the final legislation."(The Council for Affordable Health Insurance)

[Guidance Overview] Health FSA Uniform Coverage Rule Precludes Recoupment
Excerpt:"On March 26, 2010, the IRS released Chief Counsel Advice No. 201012060 (pdf), in which the Chief Counsel concluded that, if an employee's reimbursements from a health FSA exceed her contributions to the health FSA at the time of the termination of her employment, the employer cannot recoup the difference from the employee. Neither the previous proposed regulations nor the current proposed regulations regarding health FSAs (Prop. Treas. Reg. ? 1.125-5(d)(1) (pdf)) stated explicitly that such recoupment is not permitted."(Delaware Employment Law Blog)

[Guidance Overview] Alzheimer's Expenses are Qualified Medical Expenses
Excerpt:"A recent information letter by the IRS addressed whether the monthly fee that is paid to an Alzheimer's medical facility is considered a qualified medical expense and in turn tax deductible."(Infinisource)

[Guidance Overview] Book Excerpt: Contingent Workers&Employee Benefits (PDF)
57 pages. Excerpt:"This chapter discusses how the courts have dealt with the Code and ERISA in ascertaining: whether and under what circumstances contingent workers have been found eligible to participate in a service recipient's benefit plans; and whether a service recipient is in fact the actual employer in cases where the contingent worker was employed by a [Professional Employer Organization]."(Daniel N. Janich, Esq. of Greensfelder law firm; from BNA's book,'ERISA Litigation,'copyright 2008)

Which Consumer-Driven Health Care Option Should You Choose: HSAs, FSAs, HRAs? (PDF)
4 pages. Excerpt:"As the satisfaction of consumer driven health plans hasincreased over the years, the interest has grown significantly. Unfortunately, many consumers and employers are confused about the differences between the various consumer driven plans and which optionwould be best for them. The Council for Affordable Health Insurance (CAHI) first prepared this analysis in 2002 and has updated it annually in an effort to help people make informed choices about consumer driven health plans."(Council for Affordable Health Insurance)

Bill Calls for Ensuring Flexible Spending Account Funds Go with Departing Employees
Excerpt:"The bill also would require that the funds distributed to an employee on leaving a job are included in gross income for that taxable year. The language in the bill suggests that the legislation would include both employees who were fired and those who left their jobs voluntarily."(Investment News; free registration required)

[Guidance Overview] First Circuit: Expenses of Fathering Children Through Unrelated Egg Donor and Gestational Carriers Aren't Medical Care
Excerpt:"EBIA Comment: Infertility expenses can raise thorny issues for health FSA administrators. Consequently, health FSA administrators should not rely solely on entries in Publication 502 for guidance when determining whether a particular infertility expense qualifies as medical care under Code Section 213(d). Even when infertility services are qualified medical expenses, we note that infertility treatment programs often require participants to make substantial payments before medical services are provided."(Employee Benefits Institute of America)

[Guidance Overview] Small Plan Seven-Day Safe Harbor for Remitting Participant Contributions (PDF)
2 pages. Excerpt:"On January 14, 2010, the U.S. Department of Labor (DOL) issued final regulations establishing a seven-day optional'safe harbor'period in which employers may remit participant contributions to certain ERISA-covered plans with fewer than 100 participants (small plans)."(Drinker Biddle&Reath LLP)

Health Reform Bills Contain Additional Taxes on Cosmetic Procedures, Simple Cafeteria Plans
Excerpt:"This series is examining features of the legislation already passed in the House (H.R. 3962) and the Senate (H.R. 3590). These features are likely to survive in health care reform legislation and would directly affect employers. Today, an employer requirement to report health care costs and a distribution limitation on flexible spending arrangements (FSAs) are discussed."(Wolters Kluwer)

[Official Guidance] Text of DOL Final Regulations on Participant Contributions, Loan Repayments; 7-Day Safe Harbor for Small Plans (PDF)
To be published in January 14, 2010 Federal Register. 36 pages. Excerpt:"This document contains a final regulation that establishes a safe harbor period during which amounts that an employer has received from employees or withheld from wages for contribution to certain employee benefit plans will not constitute'plan assets'for purposes of [ERISA], and the related prohibited transaction provisions of the Internal Revenue Code. This regulation will enhance the clarity and certainty for many employers as to when participant contributions will be treated as contributed in a timely manner to employee benefit plans. This final regulation will affect the sponsors and fiduciaries of contributory group welfare and pension plans covered by ERISA, including 401(k) plans, as well as the participants and beneficiaries covered by such plans and recordkeepers, and other service providers to such plans."(Employee Benefits Security Administration, U.S. Department of Labor)

In Health Reform, Employers Must Report Costs; FSA Distributions Limited to Prescribed Drugs
Excerpt:"As the House and the Senate discuss their differing health reform proposals, Spencer's Benefits Reports continues a series examining health reform provisions that would affect employer-sponsored health plans and would take effect soon after enactment of any legislation."(Wolters Kluwer)

Flexible Spending Accounts'Contribution Cap Included in Health Care Reform Act
Excerpt:"Both the House bill (HR 3962) and the Senate bill (HR 3590) include a provision to limit pretax contributions to FSAs to $2,500 per year."(Investment News; free registration required)

States'Use of'Cafeteria Plans'to Provide Health Insurance
Updated: May 2009; reposted November 2009. Excerpt:"2009 Activity: For this year's sessions, bills to expand use of section 125 cafeteria plans are being discussed in at least eight states, including Alaska, California, Iowa (enacted), Kansas, Mississippi, New Jersey, Oklahoma and Washington (as of August 4, 2009)."(National Conference of State Legislatures)

2009 Versions of HSA Reporting Form 8889 and Publication 969
Excerpt:"EBIA Comment: The absence of significant changes in these 2009 releases is what we expected, given that the rules governing HSAs, HRAs, and health FSAs have remained relatively stable this year. It will be interesting to see what changes may emerge in 2010 as part of any health care reform proposals that may be enacted, and to see whether the final cafeteria plan regulations will be issued."(Employee Benefits Institute of America)

Rules for Flexible Spending Accounts Loosen Up
Excerpt:"In the last few years, many employers have extended the use-it-or-lose-it provisions up until March 15 of the following year. The grace period option was made possible by an Internal Revenue Service rule change four years ago that allowed employers to offer up to a 14- and a half-month frame for account usage. However, many employers are still sticking with the Dec. 31 deadline, which means you only have a few weeks instead of a couple months to figure out how to best spend any unused dollars.'Participants should really be encouraged to check with their employer or employee benefits plan to see what the specific rules are for their plans,'said Jody Dietel, chief compliance officer for WageWorks Inc., a San Mateo-based provider of employee benefits."(Contra Costa Times via The Oakland Tribune)

[Guidance Overview] Decrease of 7.5 Cents in 2010 Mileage Rate for Transportation to Obtain Medical Care or as Part of Deductible Moving Expenses
Excerpt:"EBIA Comment: Transportation expenses that are deductible medical expenses under Code Section 213 generally form the basis for tax-free transportation benefits under a health FSA, HRA, or HSA. To simplify administration, some employers'health FSAs or HRAs exclude medical transportation expenses from the list of reimbursable items; if not excluded, such expenses may be reimbursed by health FSAs or HRAs at the 16.5 cents per mile rate for 2010. HSA account holders can also choose to use the standard mileage rate to calculate the tax-free distribution that they can take for medical transportation expenses that meet the Code Section 213 definition of medical care. But remember, the new rate doesn't apply until 2010."(Employee Benefits Institute of America)

[Guidance Overview] IRS's 2009 Version of Pub. 502 on Medical and Dental Expenses
Excerpt:"EBIA Comment: Pub. 502 provides valuable guidance on what qualifies as a medical expense under Code Section 213(d), and thus, certain information about which expenses can be reimbursed or paid by health FSAs, HSAs, or HRAs. However, using Pub. 502 to determine what expenses are reimbursable under these tax-favored vehicles must be done with caution, because Pub. 502 addresses only what expenses are deductible -- -it doesn't describe the different rules for reimbursing medical expenses under health FSAs, HSAs, or HRAs."(Employee Benefits Institute of America)

Mercer Says'Cadillac Tax'Would Force Employers To Trim Health Insurance Costs
Excerpt:"Two-thirds of employers would raise deductibles, change insurers or scale back coverage to avoid the so-called Cadillac tax on high-cost benefits proposed in the Senate Democrats'health care bill, a survey to be released Thursday by consulting firm Mercer says. Among things employers might change or drop: flexible spending accounts, which are used to cover unreimbursed medical expenses, and dental or vision policies."(Kaiser Health News)

[Guidance Overview] Cancer Insurance Policy Endorsed by Employer and Offered Through Cafeteria Plan Was an ERISA Plan
Excerpt:"EBIA Comment: Employees who choose to participate in a voluntary plan may expect the employer to allow them to pay premiums through the employer's cafeteria plan. Before permitting this, however, the employer must weigh the risk that use of the cafeteria plan may contribute to endorsement, taking the voluntary plan out of the safe harbor and making it subject to ERISA. While it's not clear how much weight the court gave to the employer's use of a cafeteria plan (or to the fact that the policy was apparently the only benefit offered on a pre-tax basis), there will inevitably be additional employer involvement when a cafeteria plan is utilized. And while not at issue in this case, employers should also consider the impact of COBRA, HIPAA, and other laws before allowing coverage to be paid for through a cafeteria plan."(Employee Benefits Institute of America)

[Guidance Overview] Chart of 2009 and 2010 Retirement Plan and Other Inflation‑Adjusted Benefits (PDF)
3 pages. Also included are transportation and adoption benefits. (Seyfarth Shaw LLP)

IRS Personnel Share Unofficial Comments on Compliance Issues with ABA Employee Benefits Committee
Excerpt:"IRS representatives shared their unofficial views on certain benefits issues that were presented earlier this year by the Employee Benefits Committee of the Tax Section of the American Bar Association. Although the views cited by the IRS representatives are not binding and do not represent the policy of the agency, they provide useful insight into areas of concern. Some of the notable unofficial and non-binding views shared by the IRS representatives were the following . . . ."(Deloitte via BenefitsLink.com)

[Guidance Overview] Michelle's Law Amendments: HRA Plans and Cafeteria Plans with Health Care Reimbursement Accounts
Excerpt:"Tax/COBRA Treatment[:] Because Michelle's Law did not amend Code section 152, reimbursements for eligible expenses of dependents covered under Michelle's law that do not meet the definition of dependent under Code section 152 may be subject to tax. In addition, it is unclear whether COBRA coverage for'Michelle's Law'dependents is measured from the loss of student status or the loss of extended coverage provided by Michelle's law."(Fort William LLC)

[Guidance Overview] Red Flags Rule: Application to Health Flexible Spending Accounts, Health Reimbursement Arrangements, Dependent Care Assistant Programs and Transportation Plans
Excerpt:"Under the Red Flags Rule, certain businesses and organizations must establish and implement a written Identity Theft Prevention Program (ITPP). To comply with the Red Flags Rules, a written ITPP must have four basic elements . . . ."(Groom Law Group)

[Guidance Overview] IRS and Treasury Officials Provide Unofficial Views on Imputing Income for Health Coverage and More
Excerpt:"The Joint Committee on Employee Benefits (JCEB) of the American Bar Association has reported on its May 2009 Q&A session with IRS and Treasury officials. Highlights include . . . ."(Employee Benefits Institute of America)

Health Expense Accounts Could Face Cuts
Excerpt:"The health care bill proposed last week by the Senate Finance Committee would pare tax-free health expense accounts. . . . The legislation would limit FSA contributions to $2,000 a year beginning in 2013. And it would standardize the expenses that are qualified.'The Finance Committee presumably decided that the revenue loss from FSAs is large in relation to the good it does,'says Paul Ginsburg, president of the Center for Studying Health System Change."(USA TODAY)

[Guidance Overview] Ohio Health Reforms Mandate Cafeteria Plans, Expand Access for Adult Children and Increase State COBRA Coverage Period (PDF)
3 pages. Excerpt:"Ohio's recently enacted state budget (Am. Sub. H.B. 1) includes several provisions that may affect employer-sponsored plans. The new law requires employers with 10 or more employees to offer full-time employees the opportunity to pay for health insurance with pre-tax dollars, requires insurers and public employee benefit plans to offer coverage to dependents up to age 28, and extends the period of health continuation under the state COBRA law from 6 to 12 months."(Buck Consultants)

[Guidance Overview] Your Employee Benefits and the FTC's New Red Flag Rules
Excerpt:"Are the employee benefits that your company offers subject to the new Red Flag Rules? Under new guidance issued by the FTC, the answer is probably not. But if your cafeteria plan includes a Flexible Spending Arrangement (FSA) benefit with a debit card, you may want to take some steps to ensure that the third party administrator issuing the debit card is in compliance with the Red Flag Rules by November 1, 2009. You may also want to take similar steps with the trustee of your 401(k) or other pension benefits."(Warner Norcross&Judd LLP)

[Guidance Overview] DOL Staff Members Provide Informal Views on SPDs/SMMs and Issues Under the Davis-Bacon and Service Contract Acts
Excerpt:"The Joint Committee on Employee Benefits (JCEB) of the American Bar Association has reported on its May 7, 2009 Q&A session with DOL staff members. Highlights include unofficial, nonbinding remarks about these welfare plan topics: (1) SPD requirements when there is a change in federal law, and (2) treatment of FSAs, HRAs, and HSAs under the Davis-Bacon Act and the Service Contract Act."(Employee Benefits Institute of America)

Don't Tread on My FSA, Advocacy Group Warns
Excerpt:"The Employers Council on Flexible Compensation (ECFC), a non-profit organization dedicated to the maintenance and expansion of private employee benefit programs on a tax-advantaged basis, has formed a national grassroots advocacy organization called Save Flexible Spending Plans'to protect against the elimination of flexible spending accounts as an option to help fund a small portion of the costs for health care reform efforts.'"(Wolters Kluwer)

Flexible Spending Accounts May Change Under Health Care Reform
Excerpt:"One issue in the health care reform debate could involve a proposal to cap flexible spending accounts -- pre-tax funds that employees can use to cover certain out-of-pocket medical expenses -- which many federal workers use. The House version of the health care reform legislation (H.R. 3200) currently includes an amendment that would limit the scope of FSAs by prohibiting employees from using them to pay for over-the-counter medicines -- a move that the Joint Committee on Taxation estimated would save the government $8.2 billion over 10 years."(GovernmentExecutive.com)