Flexible Spending Accounts
Flexible Spending is available to all active employees working 20 or more hours a week. Flexible Spending Accounts (FSA) allow you to set aside money on a pre-tax basis to use for eligible expenses for Health and Dependent Care and new for this year Commuter Spending (Transit and Parking) Plans. These plans are handled through the City of Newton’s Plan Administrator “Cafeteria Plan Advisors (CPA)”.
1) Health Care: allows you to set aside between $100 and $2,750 annually for all eligible medical/dental out-of-pocket expenses for you and your dependents.
If you are a new enrollee in a Medical FSA, you will receive a Cafeteria Plan Prepaid Benefit Card to be used as you incur eligible out-of-pocket medical care expenses. If you already have a CPA Prepaid Benefit Card and you re-enroll, the funds will load on to your existing card as of January 1, 2022. This card makes it fast and convenient to access your annual medical care FSA election amount.
For those expenses that you did not use your Benefit Card, a Medical Reimbursement Claim form can also be submitted to Cafeteria Plan Advisors (CPA) via fax or the www.cpa125.com website.
FSA Grace Period: At the end of the 2022 plan year, you will have an extra 75 days to incur new expenses and use up any unspent Health Care Flexible Spending Account monies.
2) Dependent Care: allows you to set aside between $300 and $5,000 annually to pay for qualifying work-related child or adult daycare expenses.
If you enroll in a Dependent Care FSA, you will need to submit a Dependent Care Reimbursement Claim form. You will need to provide an itemized statement from the dependent care provider that includes: service dates, dependent’s name, type of service, amount billed, and provider’s name and address. Credit card receipts, canceled checks, and balance forward statements do not meet the requirement for acceptable documentation.
Commuter Spending Accounts For Employees Only!
(Cannot be Used by Dependents)
3) Transit Plan: For employees mass-transit expenses (subway, train, bus, trolley, commuter boat, Uberpool, and Lyft Line. Tolls are not included.) used to commute to/from work. Maximum monthly election of $270 (up to $3,240 per year).
4) Parking Plan: If you as an employee pay to park at work, this plan may be a good option. Maximum monthly election of $270 (up to $3,240 per year)
A portion of the total amount you elect for each Flexible Spending Account will be deducted from each of your paychecks on a pre-tax basis during the 2021 calendar year and deposited into your Flexible Spending Accounts. Be sure to estimate your expenses carefully – IRS regulations state that any unused funds remaining in the accounts at the end of the plan year must be forfeited.
You must re-enroll each year if you wish to maintain this benefit. However for those re-enrolling from the 2021 calendar year, you may do so online at www.cpa125.com.
For new plan participants you must submit an enrollment form to the Human Resources Office, Ed Center, Room 201.
Do not send paper enrollment forms directly to CPA!
In order to enroll or re-enroll into a FSA after the open enrollment period ends on November 30, 2021, you must have a qualifying event such as: birth of child, marriage, divorce, loss of insurance, etc.
The next Open Enrollment period will be in October/November 2022 for the calendar year 2023.
Important Information for 2021 Plan Participants
Employees currently enrolled in Flexible Spending Plans for the 2021 plan year must incur expenses by December 31, 2021 and reimbursement claims must be submitted to CPA by March 31, 2022.
ALL CLAIM FORMS MUST BE SENT DIRECTLY TO CPA (FAX: 781-848-8477)