Payrol Deductions

Currently, schools mail the payroll deductions for their participants to CSI each pay period. CSI maintains a claims account and reimbursements are paid from that account. Beginning September 1, 2008, each school can keep these funds in their own general assets. The school will be responsible for maintaining and funding a checking account that CSI’s claims administrator, Arcadia Benefits Group, will use to generate the Health or Dependent Care FSA reimbursements. This account can be a separate checking account or it can simply be the school general fund.

There are advantages and disadvantages to this change. An advantage is that you no longer need to mail payroll deductions to CSI. Your school will keep your own payroll deductions in your general assets and may earn interest on any excess funds. A disadvantage is that participants may claim their entire Health Care Spending Account at the beginning of the plan year if they have already incurred the expense. This means that some prefunding may be required if one of your participants incurs a large claim at the beginning of the plan year.

You will receive forms with your annual enrollment package that will allow Arcadia Benefits to set up your selected bank account on their claims payment system.

Full Issue: No. 54 - May 9, 2008

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