Benefits Plans - Flexible Spending Accounts:
Bi-Weekly Payroll Deduction Schedules for Flexible Spending Accounts
Deductions will occur over 12 paychecks for faculty and staff members paid monthly, and over 24 paychecks for staff members paid bi-weekly. Deductions for mid-year enrollments will be based on the number of paychecks remaining in the calendar year after the effective date. Deductions cannot be taken from stipend or fellowship funds. No deductions will be taken during periods such as a leave when the enrollee is not receiving a salary from the university.
In months where there are three paychecks, you will not have a deduction from the last paycheck. Deductions taken in one month are reported to PayFlex on the first working day of the following month.
Deductions cannot be changed or canceled during the calendar year unless a qualified family status change occurs (marriage, divorce, birth of baby, etc.), in which case the coverage change must be consistent with the change in status. If such a change occurs, the participant must provide documentation of the change by submitting a Health Care FSA Request for Change in Status and/or Dependent Care FSA Request for Change in Status form to the HRRIS Benefits Transaction Team within 30 days of the event. Otherwise, the change cannot be made until the next Open Enrollment period, usually in October.
Changes in deduction amounts will be effective the first day of the month following the receipt of the authorization form or date of eligibility, whichever is later. For example, assume that you enroll in a Health Care FSA to begin on January 1 and designate an annual contribution amount of $300. Then, on April 1 you increase the annual contribution amount to $1,000 due to a family status change. Between January 1 and March 31, $300 is available for incurred expenses. Any expenses incurred after April 1 are eligible for reimbursement up to $1,000, assuming no claims were previously filed.
The University of Michigan in its sole discretion may modify, amend, or terminate the benefits provided with respect to any individual receiving benefits, including active employees, retirees, and their dependents. Although the university has elected to provide these benefits this year, no individual has a vested right to any of the benefits provided. Nothing in these materials gives any individual the right to continued benefits beyond the time the university modifies, amends, or terminates the benefit. Anyone seeking or accepting any of the benefits provided will be deemed to have accepted the terms of the benefits programs and the university's right to modify, amend or terminate them.