90-day deadline for FSA claims ... should it be the date we have claim in hand, or postmark date?

[Guest MSMA]

HOW DO Y'ALL HANDLE THIS?

We have a 90-day (consecutive/calendar days) run out after the end of the plan year for participants to get their claims in...In the past, we have advised them that we must have the claims in our office by the 90th....not the post-marked date.

We've now be quasi-challenged on this....

Thanks in advance for your input on this!!!

[Dave Baker]

What's the exact language of the plan document? Who is the plan administrator who's responsible for applying and interpreting the terms of the plan document?

[Lisa Hand]

Since this is federal code governed by IRS, we have always followed the IRS's procedure on this, taxes and submissions like Form 5500s met deadlines if postmarked by deadline and if the deadline is on a Sunday, the next business day after the deadline.

That said, if the plan documents and communications materials (educational materials, SPD, Plan Information Summary, status letters ect) clearly say it is 90 days and must be recieved in the office by that date, then that is the rule for that plan. But this needs to be in writing and should have been clear communicated to the participants. If that is the case, then a denial letter with a copy of the previously provided materials would be the response to the appeal.

[Guest MSMA]

Unfortunately, the Plan Doc does not indicate how this issue is addressed. It only states the number of day within the run off.

It is indeed a gray area...which is why the question came up.

[Sandra Pearce]

When your materials have left you without a definitive answer then you should probably allow whatever interpretation is most favorable to the employee/participant. Then clean up the language in your documents and materials.

[SLuskin]

Then I would amend the document and clarify for the future. Make sure that it is clear in the spd and in the enrollment materials that you use.

[Guest Carolynn]

I've always been intrigued by answers that include..."change the language in your document..." as if it is so easy! I no longer work with document software, but others in this office do and we've not yet found a software provider that makes custom language easy to set up. Difficult is too mild a word to describe it. Is it appropriate for me to ask who the premier document software vendor is that allows so many administrators to recommend this path?

Thanks!

Carolynn

[GBurns]

Why would the document software provider be the controlling factor as to whether or not a Plan Document can be changed to better meet the needs of the Plan?

[mbozek]

Why does an amendment to the plan require a software application? Just write up an amendment to the plan and have it adopted in accordance with the terms of the plan to provide that the plan administrator must receive all FSA claims within 90 days after the end of the plan year. The other alternative (if the plan permits) is for the plan administrator to promulgate an administrative rule that requires that all claims must be recieved within 90 days after the end of the year. After making the change send each participant a summary of material modifications notifying them of the change.