P&A Group is the District's Third Party Administrator for the Section 125 Cafeteria Plan.
The Section 125 Cafeteria Plan, also known as a Flexible Spending Account, is a program that the Federal Government allows your employer to sponsor. It enables employees to save on Federal, State and Social Security taxes on the money they use to pay for eligible expenses. Employees and their eligible dependents can pay for health expenses, dependent care expenses, adoption expenses, and individual premiums on a pre-tax basis.
Employees must estimate how much they will spend on qualified expenses over the next 12 months (October 2012-September 2013). This amount is then divided by ten and deducted from their paychecks on a tenthly basis (ten payroll deductions). Payroll deductions are deposited into a trust account to pay for their eligible expenses. There is a $6.00 Administration Fee/Month to participate.
There are four types of accounts you can enroll in:
- Medical Expense Reimbursement
- Dependent Care Assistance
- Adoption Assistance
- Individual Premium Reimbursement
|2012/13 Contributions Per Plan Year||Minimum||Maximum|
|Dependent Care Assistance||No minimum||$5,000.00|
|Adoption Assistance||No minimum||$12,650.00|
|Individual Premium Reimbursement||No minimum||$10,000.00|
Please note: Medical insurance premiums are automatically deducted from your paycheck on a pre-tax basis. There are no fees for medical insurance premium deductions on a pre-tax basis.
For more information call customer service at (800) 688-2611 or view their plan brochure:
Section 125 Cafeteria Plan Forms
- 2012-13 Section 125 Cafeteria Plan Form
- MasterCard Request Form
- P&A Direct Deposit Form
- P&A Reimbursement Claim Form
- P&A Dependent Care Election Form
Enrollment does not roll forward each year. You must enroll during open enrollment each year to take advantage of the Section 125 Cafeteria Plan pre-tax deduction. To enroll, there will be a $6.00Administration Fee/Month.
Use it or Lose it
The “Use it or Lose it” rule under the IRS guidelines state that if you contribute dollars to a reimbursement account and do not use all of the monies you deposit, you will lose any remaining balance in the account at the end of the plan year (September 2013). Only contribute money you are confident you will use during the plan year to pay for qualified expenses.
P&A Group - Benefits Mastercard
P&A Group offers a Benefits MasterCard which works like a debit card. As you incur these expenses, simply present your Benefits Card to the provider of the goods or services you are purchasing. Eligible expenses will be automatically deducted from the trust account that is set up. If you are unable to use your Benefits Card, you can still be reimbursed for eligible expenses by submitting a claim with a copy of your receipt. Benefits MasterCard may not have funds available until November 15, 2012. Eligible expenses at the start of the plan year may require a claims submission for reimbursement, receipts are required.
Over-the-counter medicines requires a doctor's prescription!
Effective January 1, 2011, over-the-counter medicines are reimbursable if submitted with a doctor’s prescription. Sample eligible expenses without a doctor’s prescription include: Band aids, Elastic bandages & wraps, Birth control, First aid supplies, catheters, insulin/diabetic supplies, contact lens supplies and solutions.