Carrier Would Get What’s Lost

In private sector FSAs, typically any unused money in an FSA reverts to the employer. In the federal program, that money will go to the carrier, which should be announced soon by the Office of Personnel Management. On the flip side, the carrier-not the government-will be on the hook for another special monetary provision of FSAs. That provision requires that the entire amount an employee designates for a year be available immediately, regardless of whether the employee has yet paid that much into the account. Thus, an employee could use up the entire amount, leave and not have to pay the carrier the difference.