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Automatic Increase in FSA Limit


kgr12
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Is there any reason that a cafeteria plan document with a health FSA couldn't (or shouldn't) provide for the automatic inflation adjustment to the dollar limit in section 125(i) rather than amending the document each year to state the dollar amount in effect? This is the standard practice in 401(k) plan documents, but most of the FSA documents I've seen for some reason specify the dollar amount without providing any automatic adjustment for inflation language.  

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Funny, most of the documents I've seen DO provide the automatic inflation adjustment. At any rate, unless an employer for some reason does not want the limit to increase, it seems like it is unnecessary work and expense to amend each year. (The cynical part of me wonders if a TPA might do this intentionally to increase billings, but that is perhaps an unworthy thought.)

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