Guest EDD Posted February 27, 2003 Posted February 27, 2003 We have had a transit/parking pre-tax reimbursement plan in place for a few years. The employees have rolled over balances from year to year. Starting in 2003, we changed TPA's but some employees still had balances from 2002 with the prior plan. We're not sure how to handles these balances. We don't want to make them forfeit the balances, but I don't believe we can tax and then refund the money.Any suggestions?
E as in ERISA Posted February 27, 2003 Posted February 27, 2003 Why do you need to do any different than in past years? Why does this have to be a "new plan"?
GBurns Posted February 28, 2003 Posted February 28, 2003 Why would you need a new Plan? What does changing your TPA have to do with the account balances? You are changing TPAs not your Plan. A TPA provides you with services to administer your plan because you do not want to do it yourself. The TPA is not the Plan. The Plan is yours, the Plan stays but the TPA changes whenever you feel like changing TPAs. Or is there something else that we missed? George D. Burns Cost Reduction Strategies Burns and Associates, Inc www.costreductionstrategies.com(under construction) www.employeebenefitsstrategies.com(under construction)
Guest EDD Posted February 28, 2003 Posted February 28, 2003 The new TPA will not administer claims for the rolled over balances. If the employees sign up with the new vendor, they have to have payroll deductions to fund those reimbursement claims or purchase transit/parking passes or vouchers.
E as in ERISA Posted February 28, 2003 Posted February 28, 2003 Maybe you just picked the wrong vendor! I think that you just need to "self-administer" the remaining dollars from last year.
GBurns Posted March 5, 2003 Posted March 5, 2003 What does your choice of TPA have to do with the "vendor"? What does this "vendor" do? As far as I know transit passes and public transportation "tickets" are sold by the transport providers, and parking is sold by the parking space provider, so what does this "vendor" sell and what is this "sign up with the new vendor" ? I am wondering what it is the employees have to sign up for with anyone other than you the Plan Sponsor and why there would be anyone other than the transit and parking providers from which to buy anything? George D. Burns Cost Reduction Strategies Burns and Associates, Inc www.costreductionstrategies.com(under construction) www.employeebenefitsstrategies.com(under construction)
Guest EDD Posted March 5, 2003 Posted March 5, 2003 I guess my use of the word "plan" caused some confusion. The employees signed up with the new vendor/TPA for 2003 via their website. We receive a file from the vendor to set up payroll deductions based on the eployees' monthly order.The vendor purchases transit passes or vouchers and ships them to us (the employer) for distribution. Parking vouchers are not readily available so the employees submit reimbursement claims for those monthly expenses. We are then invoiced monthly to pay for the purchased vouchers or reimbursements.
GBurns Posted March 6, 2003 Posted March 6, 2003 Then I have to agree (go) with Katherine. You picked the wrong vendor and should self administer the claims from last year. George D. Burns Cost Reduction Strategies Burns and Associates, Inc www.costreductionstrategies.com(under construction) www.employeebenefitsstrategies.com(under construction)
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