IRC 125 Cafeteria/Flexible Benefit Program
What is an IRC 125 Cafeteria/Flexible Benefit Plan?
It is a plan offered by the District to cover specific medical and dependent care expenses with pre-tax dollars, thereby, reducing taxable income.
Who is eligible to participate in this plan?
All Regular Classified, Contract Faculty, Foundation, Adjunct Faculty, and Management/Confidential employees who meet the eligibility requirements for the District’s Health Benefits.
When can I enroll in an IRC 125 Cafeteria/Flexible Benefit Plan?
Open enrollment is during the month of December.
What is the plan year for IRC 125 Cafeteria/Flexible Benefit Plan?
IRC 125 Cafeteria/Flexible Benefit Plan is a calendar year plan from January 1st to December 31st.
How does the plan work?
You set an amount you would like to contribute toward the plan. Elected amount is deducted from each paycheck on a pre-tax basis and deposited into an account for your use during the plan year. For Adjunct Faculty, deduction takes place over January-June and September-December.
Participation is irrevocable for the calendar year unless you qualify for a "triggering event" (i.e. marriage, divorce, birth, adoption, loss of income, significant change in employment status, significant change in health coverage, Family Medical Leave Act, Child Support Order, Medicare or Medicaid eligibility, change in coverage for dependent care, Military leave, or death).
What is the reimbursement procedure?
To receive a reimbursement of your expenses, submit a reimbursement claim form with your receipts attached to Shirrell Consultants. The frequency of when a claim is submitted is up to the employee. Claims may be submitted as expenses are incurred or on a monthly, quarterly, or an annual basis. You have 90 days after the plan year ends to submit all your claims and deplete your account balance.
Termination of employment: If employment is terminated before the end of the plan year, you have 90 days from the date of termination to submit your claims. Claims can only be submitted for expenses incurred during time of employment.
Leave of absence without pay: Employees on the plan who go on a leave of absence without pay during the plan year, should continue to submit their monthly payments directly to the Plan Administrator. Payments submitted directly to the plan administrator are not considered pre-tax dollars.
Employer sponsored qualified plan expenses:
Group medical premiums-Employee’s portion of pro-rata health insurance premiums paid via payroll deduction is automatically processed through the IRC 125 plan. It can only be for SRJC Health Plans. Do not include these amounts in the out-of-pocket expenses.
Out-of-pocket medical expenses-deductibles, co-payments, and other eligible medical expenses not covered by the insurance. Some examples are orthodontia (braces); dental crowns & bridge work; crutches; insulin; co-pay for prescriptions; psychologist fees; vision (eye glasses, exams, contacts, saline solution, laser surgery); x-rays; wheelchair; chiropractors; hospital fees; obstetrical expenses; hearing aids; and acupuncture. Certain over-the-counter drugs are also eligible. Examples include pain relievers, allergy medicine, cold & cough medicine, etc. Please contact Shirrell Consultants for other considerations. Cosmetic expenses are not eligible. A maximum of $5,000 of earnings per year can be allocated as pre-tax dollars for medical expenses. Note: Premiums for private plans or other employer plans are NOT ELIGIBLE.
Dependent Care-for children (13 or under) or care for a dependent who is disabled and living with you for a minimum of 8 hrs a day. Expenses include but not limited: day care centers; baby-sitters; caregivers for disabled spouse or dependent; nursery schools; preschools; tuition (through kindergarten); camps (excluding overnite camps); and household services to include care of a qualified dependent. A maximum of $5,000 of earnings per year can be allocated as pre-tax dollars for dependent care expenses.
The employee forfeits any unused balance at the end of the year.
More Information:
2016 125 Plan Frequently Asked Questions
2016 Direct Deposit Request
2009 125 Plan Highlights of Changes
2009 125 Plan Frequently Asked Questions
2009 125 Plan Approved Vendors List
125 Plan Adjunct Faculty Information
125 Plan Summary
Salary Reduction Agreement Form
Lisa Hotchkiss, Payroll Specialist
707-527-4200
Deepa Desai, Payroll Supervisor
707-527-4500
Plan Administrator:
Shirrell Consultants, Inc.
P.O. Box 329
Santa Rosa, CA 95402
707-544-1801 |
