PEN SEASON REPORT plan, if he or she is eligible for a survivor’s annuity, and you are enrolled in a family enrollment at the time of your death. For active federal employees: Survivors’ benefits are determined by operation of law; there is no requirement for active federal workers to elect survivors’ annuity benefits for their spouses in order to protect the spouse’s future FEHBP entitlement.
If I have FEHBP plan coverage, do I need to sign up for Medicare Part D prescription drug plan benefits as well? Your prescription drug benefits under the FEHBP are generally better than, or at least as good as, the prescription drug benefits under Medicare. You do not need to sign up for Medicare Part D. The OPM contract year 2011 FEHBP plan brochures will each contain a statement telling you that your FEHBP prescription drug benefit is superior to or at least as good as Medicare’s. If you subsequently decide to sign up for Medicare Part D, the plan brochure statement from OPM will excuse you from any Medicare Part D late-enrollment penalty.
Can I find information concerning my FEHBP plan on the Internet? Information on the 2010 Open Season (for contract year 2011) will be posted on the OPM insurance Web site, www.opm. gov/insure. The OPM site will provide links to the health plan brochures for 2011 before Open Season begins on November 8. These links also will be posted on the NARFE Web site, www.narfe.org.
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Your Open Season package from OPM also will provide you with other sources.
Who is eligible to participate in the Federal Flexible Spending Account Program (FSAFEDS)?
would still pay for these expenses, but you would do so using money remaining in your paycheck after federal (and often state and local) taxes are deducted.
Employees who work for an executive branch agency or an agency that has adopted the Federal Flexible Benefits Plan (FedFlex) can elect to participate in FSAFEDS.
The employee’s annual election is deducted from his or her pay in allotments spread evenly over the number of pay dates remaining in the benefit period.
When do you enroll?
What is the “Use-It-or-Lose-It” Rule?
Eligible employees can enroll in FSAFEDS during Open Season. Open Season enrollments are effective January 1 of the following year. Current enrollees must remember to enroll each year to continue participating in FSAFEDS. Enrollment does not carry forward year to year.
Under Internal Revenue Service rules, you forfeit any money for which you did not incur an eligible expense under your FSA during the benefit period.
What is a Flexible Spending Account (FSA)? A flexible spending account is a tax-favored program offered by employers that allows their employees to pay for eligible out-of-pocket health care and dependent care expenses with pretax dollars. By using pretax dollars to pay for eligible health care and dependent care expenses, an FSA gives employees an immediate discount on these expenses that equals the taxes they would otherwise pay on that money.
How do I pay for this benefit?
Can an annuitant participate in this program? No. By law, annuitants (other than reemployed annuitants) cannot participate in FSAs. FSAs are a way of setting aside pretax salary for payment of eligible expenses. Annuitants receive annuities, which are not salary. Re-employed annuitants must be eligible for active FEHBP coverage to participate.
How do I get more information about FSAFEDS? For further information, visit www. fsafeds.com or call 877-372-3337 (TTY: 800-952-0450).
Retirement Benefits Service Department
How can an FSA help me? An FSA offers tax savings by allowing you to pay for out-of-pocket expenses with pretax money. Without an FSA, you
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OCTOBER 2010 | NARFE