Flexible Spending Account Program Launching

Executive branch employees will be allowed to set aside salary on a pre-tax basis to pay certain dependent care and medical-related costs through flexible spending accounts, following award of a contract to SHPS, Inc., to administer the program. Under the contract award by the Office of Personnel Management, SHPS, Inc.-which administers similar programs for many state and local governments as well as private sector employers-will be primarily responsible for educating employees regarding how FSAs work, providing customer service, integrating the program with agency payroll systems and other administrative matters. OPM says that as previously announced, an open season will be held in May with the benefit available starting July 1, with future plan years running each calendar year and future open seasons held each autumn in conjunction with the federal health insurance open season. Those interested will be required to make a new enrollment each year and they will not be able to change their elections during a plan year except in the case of a “life event” such as marriage.