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Conference 7.286::digital

Title:	The Digital way of working

Moderator:	QUARK::LIONELON

Created:	Fri Feb 14 1986
Last Modified:	Fri Jun 06 1997
Last Successful Update:	Fri Jun 06 1997
Number of topics:	5321
Total number of notes:	139771

2239.0. "HCRA and TFSO?" by RIPPLE::KOTTERRI () Tue Nov 24 1992 10:55

    I have some questions about how the Health Care Reimbursement Account
    (HCRA) for 1993 works for those employees who receive the TFSO package
    on December 7.

    1- Since the employee was notified of TFSO before 1993, but is still
       technically employed for nine weeks (through February 13, 1993
       according to my calculations), does the HCRA withholding and ability
       to make claims against the HCRA extend during that nine week period?

    2- Does this also extend for the additional weeks in the 'package',
       beyond the initial nine weeks? 

    3- Does the employee have access to the full amount of HCRA funds from
       January 1, as if he would if he were not TFSO's?

    4- If the employee uses more of the HCRA fund than he has contributied
       in weekly withholding, prior to departing Digital due to TFSO, does
       he have to pay it back?

T.R	Title	User	Personal Name	Date	Lines
2239.1		USPMLO::JSANTOS		`Tue Dec 01 1992 17:00`	8
	re.0 1-yes, 2-no, 3-yes, 4-no. Please note - you can only submitt claims that were incured while you were participating in the plan. For example, if your nine weeks run until the middle of February and you began HCRA for January 1 you can only get reimbursed for expenses from January 1 until the middle of February (when your nine weeks ends.
2239.2		TLE::TOKLAS::FELDMAN	Opportunities are our Future	`Tue Dec 01 1992 17:18`	26
	re: the note in .1 That's not the way I read the explanation in VTX BENEFITS_US. My reading is this: Suppose your deduction is $10/week ($520/year) Suppose your employment officially ends Feb. 19 (for whatever definition of "ends" is correct) Then: If you incur a reimbursable expense of $700 on Jan. 15, you may claim against the full, annualized amount, i. e., you can be reimbursed $520 of the $700. On the other hand, if you have no reimbursable expenses between Jan. 1 and Feb. 19, but you incur a reimbursable expense of $700 on Mar. 1, then you may only claim against your balance in the account, (which is $70 +/- $10, depending on the exact dates the deductions start and end). In other words, the rules here are stacked in favor of the employee. It also seems fair, since someone who wasn't TFSO'd could file a claim against the full annualized amount in January, and then decide to quit in March before paying in the full amount. People who are TFSO'd surely deserve the same benefit. Gary
2239.3		USPMLO::JSANTOS		`Thu Dec 03 1992 08:34`	15
	re.2 HCRA and DCRA work differently. If you stop working at Digital or stop your participation in the reimbursement accounts during the course of the benefit period, your contributions to the reimbursment accounts will stop the date you leave Digital or stop participating. However, you will be able to submitt Dependent Care expenses that you incurred during the benefit period until all funds are used (or until the runout period ends on March 31). You will be able to submit claims for eligible Health Care expenses that you incurred during the benefit period and prior to the date you terminated, retire or stop participation. These claims for Health Care expenses incurred prior to the effective date of change can be submitted for reimbursment until all the funds are used (or until the runout period ends on March 31).
2239.4		USPMLO::JSANTOS		`Fri Dec 04 1992 09:12`	8
	.3 and our benefits book are incorrect and the information in VTX is correct. If you have HCRA and stop participating you can submitt claims for expenses incurred after you stop particpating if there is money in the account that you contributed through a payroll deduction. Thanks to the folks who followed up on this one with me. John