Pechanga 2013-2014 Benefits Guide

Flexible Spending Accounts

Flexible Spending Accounts (FSAs) enable you to put aside money for important expenses and help you reduce your income taxes at the same time. PR&C offers two types of Flexible Spending Accounts a Health Care Flexible Spending Account and a Dependent Care Flexible Spending Account. Our Flexible Spending Accounts are administered by Discovery Benefits and work like a savings account—each pay period a pre-tax payroll deduction is deposited into your Health and/or Dependent Care Spending Account. When you need money to cover an eligible expense, you make a pre-tax "withdrawal" by using the Discovery Benefits Debit Card* at the point of services and/or completing a claim form and providing proper documentation (pharmacy receipts, detailed bills or explanation of benefits [EOB]). Note: The FSAs run on a calendar year basis from January 1st through December 31st. You must re- elect your FSAs for the following year each November. How Flexible Spending Accounts Work 1. Each calendar year during the FSA open enrollment period, you decide how much to set aside for health care and/or dependent care expenses. 2. Your contributions are deducted from your paycheck on a pre-tax basis in equal installments throughout the calendar year.

3. As you incur health care or dependent care expenses throughout the year, submit a claim form for reimbursement. Your claim will be processed and you will be reimbursed from your account. You may also use your FSA debit card to pay for eligible expenses at the point of sale. If you use your FSA debit card there is no need to fill out a claim form and wait for reimbursement. Please note that these accounts are separate - you may choose to participate in one, both, or neither. You cannot use money from the Health Care FSA to cover expenses eligible under the Dependent Care FSA or vice versa.

You must actively re-enroll in the FSAs each year. You are not automatically re-enrolled.

Plan

Annual Maximum Contribution

Examples of Covered Expenses Copays, deductibles, orthodontia, prescription medications, etc.*

Health Care Flexible Spending Account

$2,500

Dependent Care Flexible Spending Account

$5,000 ($2,500 if married and filing separate tax returns)

Day care, nursery school, elder care expenses, etc.

* See IRS Publications 502 and 503 for a complete list of covered expenses.

* Discovery Benefits Debit Card When you use the Discovery Benefits Debit Card to pay for eligible expenses, the payment is automatically withdrawn from your account. Certain expenses may need to be substantiated to satisfy IRS guidelines, so be sure to save all your receipts when using the debit card. Careful Planning Required for FSA's Use it or Lose it. Remember to calculate your expenses conservatively when making your FSA elections and deposit only the money you expect to use. IRS regulations require that you forfeit any money left in your account after the claims submission deadline.

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