City & County of Honolulu’s “City Flex” Flexible Spending Program National Benefit Services, LLC Third Party Administrator Who is National Benefit Services, LLC? Salt Lake City, UT Dallas, TX Honolulu, HI San Diego, CA Who is National Benefits Services, LLC? • NBS has been working with employers in Hawaii for over 15 years, including: - State of Hawaii - City & County of Honolulu - Many other private sector ERs The Basics By enrolling in the City Flex Plan offered through NBS, city & county employees can save money on taxes by using their FSA dollars for everyday eligible expenses. What is a Limited Purpose Flexible Spending The most important feature of a the FSA benefits is that they allow youAccount? to pay for (LFSA) expenses you already plan on incurring, but you are able to pay for those expenses with pre- tax funds which allows you to increase your take-home pay. City Flex Benefit Options Medical FSA: ▪ Maximum annual limit is $2,400 Dependent Care FSA: ▪ Maximum annual limit is $5,000 per year or $2,500 if you are married and filing separately Why Employee Sample Employee Sample Savings Participate? Savings No HSA With HSA No FSA With FSA Salary $36,000 $36,000 Save on Taxes! Gross Pay $1,200.00 $1,200.00 Contribution — $3,350 Contribution — $200 An employee, Susan, has one child attending preschool. Taxable TaxableIncome $36,000 $32,650 Income $1,200.00 $1,000.00 She pays her pre-school provider $400/month. Taxes $9,954 $9,028 Taxes $261.41 $201.36 Medical Expenses $3,350 — She is paid twice per month so she pays her preschool Net Pay $938.59 $798.64 Spendable provider $200 every paycheck. $22,696 $23,622 PreschoolIncome Expense $200.00 — Spendable$926 in savings Income $926 in$738.59 savings $798.64 $1441 in annual savings Eligible Medical FSA Expenses Medical Dental Deductible Expenses Copays Copays (office visits, lab work, Cleanings etc) Fillings Prescription Drugs Crowns/Bridges Chiropractic Care Dentures Acupuncture Orthodontia Physical Therapy Individual Counseling/Therapy Vision First Aid Items Eye Exams Diabetic Supplies Lenses/Frames Vaccinations Contact Lenses Hearing Aids & Batteries Contact Lens Solution Lasik Eye Surgery Ineligible Expenses • Cosmetic Surgeries/Procedures • Vitamins & Supplements • Massage Therapy • Teeth Whitening • Over-the-counter drugs (unless a prescription is provided) Medical FSA: Things to Consider • Eligible dependents include your spouse and any children up to the age of 26 • Your election must continue for the full plan year unless you have a qualified event for a change of status • Marriage, birth, death, divorce, etc. • Annual election is available upfront • Consider pairing the FSA benefit with medical plans that offer a lower premium and higher out of pocket deductible Eligible Dependent Care FSA Expenses Day Care Facilities Preschool Before and After School Care Day Camps Baby-sitter (neighbor, friend, family) Adult Day Care Dependent Care FSA: Things to Consider • Eligible dependents are your children under the age of 13 • Other dependents may qualify if they are a dependent on your tax return and incapable of self-care • In order to be eligible, you and your spouse must both be working (or spouse must be going to school full-time) • Funds are available as they are withheld • Education expenses do not qualify • Examples: summer school, private school tuition, Kumon, Japanese lessons. Important Plan Year Deadlines • Plan Year • July 1st – June 30th • This is the time period funds will be withheld. It is also when your expenses must be incurred. • Run-out Period • Last day to submit claims for prior year expenses • 90 days after plan year ends (September 28th) Use your NBS Card for FSA Medical Expenses When you use your NBS Card, the merchant code identifies the type of expense and allows you to use your card for eligible expenses. Keep receipts if you use your card in case of an IRS audit or in case NBS needs more information to adjudicate your expense. If you have a card from last year, you will use the same card in the new plan year. Cards can be issued for spouses or dependents for no additional charge. Participant Portal: my.nbsbenefits.com Participant self-service overview ▪ Check your balance ▪ Manage communications and alerts ▪ Access to education and planning tools ▪ Replace debit cards ▪ Submit claims ▪ Review your transaction history Mobile Account Access Mobile applications ▪ Supports Apple and Android smartphones and tablets ▪ Shared username and password with [my.nbsbenefits.com] ▪ View account balances ▪ View transaction history ▪ Attach receipts ▪ Submit claims by taking pictures of your receipts ▪ Edit Alerts ▪ Contact Administrator ▪ Includes new virtual assistant “Emma” Manual Claim Reimbursement You can submit a claim form for reimbursement either online, through our mobile app, via fax, mail or email. The easiest way to submit your claims is online at my.nbsbenefits.com or through our mobile app. You can also elect to have your reimbursement deposited directly into your checking or savings account by enrolling in direct deposit. Administration Fee • Monthly fee is $6.00, whether you participate in one or both FSA’s (Dependent Care & Medical Reimbursement) • The fee is deducted from your paycheck on a pre-tax basis ($3.00 per paycheck) • Break even point is an annual election of about $240 (considering you will see a tax savings of about 30%) • Tax savings and monthly fee work out to be about $72 Open Enrollment: May 1st – May 31st • Forms must be faxed, emailed, or postmarked no later than May 31st • Send your forms directly to NBS *Do not turn your form into your personnel office • Forms can be sent by fax, email, or mail (details are provided on the enrollment) • Visit www.nbsbenefits.com/cityofhonolulu for all OE information! How Can I Contact NBS? • Our service center is available from 6am MST through 9pm MST • Equivalent to 2am HST through 5pm HST • ContactWhat NBS directly: is a Limited Purpose Flexible Spending - Local # (Oahu): 465-2284 - Toll-free #: (855)399-3035 Account? (LFSA) - Email: [email protected] • Walk-in visits: 1314 S King St., Suite 326 • City Flex Website: www.nbsbenefits.com/cityofhonolulu Questions?.