When an employee terminates during the Plan Year, several steps should be followed. If the terminating employee has pre-tax benefit elections through the flex plan, a Status Change Form should be completed and returned to ProBenefits promptly.
If the terminating employee has a Flexible Spending Account (and especially if he/she has a Flex Debit Card), it is essential that this form be returned to ProBenefits quickly to avoid errors in reimbursement.
Medical/Dental/Vision Care FSA Participants
- Provide Election Notice (for Medical FSA only) if you are a COBRA-compliant employer. (See our COBRA Compliance section.)
- Provide a Certificate of Creditable Coverage (for Medical FSA only) if your Flex Plan qualifies under HIPAA as requiring issuance of such a "CCC" to terminating employees. (See our HIPAA Compliance section.)
- If you are a COBRA-compliant employer, offer the employee an opportunity to use the flex plan to pre-pay COBRA continuation premiums from the final paycheck on a pre-tax basis.
If there are questions about how to handle flex plan benefits upon termination of employment, please feel free to contact us.