Flexible spending deadline extended for federal workers

The Office of Personnel Management followed the private sector this week by extending the "use it or lose it" deadline for Flexible Spending Accounts.

Last month, the Treasury Department made the same adjustment for workers in the private sector, prompting a federal workers' union to request the same benefit for the civil service. Flexible Spending Accounts allow workers to set aside untaxed income for certain expenses not covered by standard health insurance, including co-payments, deductibles, laser eye surgery and dental work. The accounts have been available to private sector workers for years, but federal employees were not allowed to use the benefit until 2003.

The previous, and much maligned, rules required federal workers to use all the funds in their FSA by the end of calendar year. The new rules are effective for the 2005 calendar year and allow employees to use the funds in their account for an additional two and a half months. The new regulations also give employees one extra month-until May 31, 2006-to submit reimbursement claims for 2005 expenses.

In May, OPM officials had indicated that there were no plans to mirror the private sector change. Agency officials did not explain the decision to adopt the new policy.

The National Treasury Employees Union applauded the move. When the Treasury Department made its private sector announcement, NTEU officials called on OPM to extend the benefit to the federal workforce.

"The changes made by OPM will reduce the amount of money set aside by federal workers that could otherwise have been lost at the end of the calendar year," said NTEU President Colleen M. Kelley. She said that this is "the kind of action the government needs to take in order to compete with the private sector as the employer of choice."

Under the FSA guidelines, participants are allowed to put aside up to $4,000 for these expenses and up to $5,000 in dependent care accounts for child care and elder care costs.

"Health care costs continue to top the list of increasing concerns to all Americans and federal employees," said acting OPM Director Dan Blair. "These enhancements encourage all employees to take full advantage of options available in the [FSA] program."

Stay up-to-date with federal news alerts and analysis — Sign up for GovExec's email newsletters.
FROM OUR SPONSORS
JOIN THE DISCUSSION
Close [ x ] More from GovExec
 
 

Thank you for subscribing to newsletters from GovExec.com.
We think these reports might interest you:

  • Going Agile:Revolutionizing Federal Digital Services Delivery

    Here’s one indication that times have changed: Harriet Tubman is going to be the next face of the twenty dollar bill. Another sign of change? The way in which the federal government arrived at that decision.

    Download
  • Cyber Risk Report: Cybercrime Trends from 2016

    In our first half 2016 cyber trends report, SurfWatch Labs threat intelligence analysts noted one key theme – the interconnected nature of cybercrime – and the second half of the year saw organizations continuing to struggle with that reality. The number of potential cyber threats, the pool of already compromised information, and the ease of finding increasingly sophisticated cybercriminal tools continued to snowball throughout the year.

    Download
  • Featured Content from RSA Conference: Dissed by NIST

    Learn more about the latest draft of the U.S. National Institute of Standards and Technology guidance document on authentication and lifecycle management.

    Download
  • GBC Issue Brief: The Future of 9-1-1

    A Look Into the Next Generation of Emergency Services

    Download
  • GBC Survey Report: Securing the Perimeters

    A candid survey on cybersecurity in state and local governments

    Download
  • The New IP: Moving Government Agencies Toward the Network of The Future

    Federal IT managers are looking to modernize legacy network infrastructures that are taxed by growing demands from mobile devices, video, vast amounts of data, and more. This issue brief discusses the federal government network landscape, as well as market, financial force drivers for network modernization.

    Download
  • eBook: State & Local Cybersecurity

    CenturyLink is committed to helping state and local governments meet their cybersecurity challenges. Towards that end, CenturyLink commissioned a study from the Government Business Council that looked at the perceptions, attitudes and experiences of state and local leaders around the cybersecurity issue. The results were surprising in a number of ways. Learn more about their findings and the ways in which state and local governments can combat cybersecurity threats with this eBook.

    Download

When you download a report, your information may be shared with the underwriters of that document.