Personal Choice Account - Flexible Benefits Administration

What does Personal Choice Account offer?

Personal Choice Account (PCA) is an administrator of personal savings accounts sponsored and designed by the Internal Revenue Service (IRS). These accounts are sometimes called Section 125 or Cafeteria Plans; however various accounts are part of other IRS Code Sections as well. What these accounts have in common is that they offer employees a choice to pay for certain qualified expenses on a pre-tax basis. Paying for certain benefits with pre-tax dollars reduces the amount you pay in taxes and increases your take-home pay. PCA offers the following plans;

• Health Care Flexible Spending Account (HFSA)
• Limited Health Care Flexible Spending Accounts (LFSA)
• Dependent Care Flexible Spending Account (DCAP)
• Health Reimbursement Accounts (HRA)
• Commute Reimbursement Accounts (CREA)
• Premium Conversion Accounts or Premium Only Plans (POP)

More information about these account types is available throughout this website.

Do I have to participate in all choices?

No. You can enroll in any combination of the choices or none at all. The decision is yours. Participation in these accounts should be based on your need. For instance, if you don’t have children or dependents that require daycare you wouldn’t want to participate in the Dependent Care Flexible Spending Account. Most people, however, will probably want to participate in the pre-tax premium coverage because there is no risk, only savings!

When you are making your choices you should not under estimate value of the Health Care Flexible Spending Account. With it’s vast array of eligible expenses which include your insurance deductible, co-pay, coinsurance and over the counter medications to name only a few, there are few people that will not save some money using this account.

Are there any risks? What are they?

There is some risk with a Health Care Flexible Spending Account, Dependent Care Flexible Spending Account and Commute Reimbursement Accounts. The Internal Revenue Service (IRS) states that if you do not have expenses that equal or exceed the money you have set aside on a pre-tax basis during a given plan year, you lose the remaining balance in your Flexible Spending Account. There are certain options that an employer may select that will lengthen the time you have to incur services. One such option is referred to as a 2.5 Month Extension. Your Employer will let you know if this is an option that has been chosen for your group.

You can minimize this risk by forecasting your expenses carefully and conservatively. We suggest that you use this Election Worksheet when determining your annual election.

Are there limits to how much I can be reimbursed for CREA expenses?

Yes! Each year the Internal Revenue Services (IRS) sets the monthly maximum reimbursement amount for both Mass Transit and Parking. Because these amounts are subject to change, please contact our Customer Service Representatives for additional information. At no point will your reimbursement exceed the monthly maximum (no matter what the cost of your pass or parking was). If you submit multiple expenses for a given month your combined reimbursement will not not exceed the monthly maximum.

How do you handle annual or multi-month transit passes?

You can submit your annual or multi-month pass at the time of purchase. The total cost will be divided by the months that the pass is valid, to determine a prorated fee. The claim will be entered into our system and will automatically issue payment once CREA contributions are received from your employer. If any of the months extend beyond your plan year they will be denied and you'll need to resubmit them after you enroll in the CREA plan the following year. At no point will your reimbursement exceed the IRS monthly maximum despite the cost of your pass or the prorated fee.

Is this an automatic election or do I need to sign a form?

Flexible Spending Accounts are not enrolled in automatically. This is because you also choose the amount of money you put into the account (we call this your annual contribution or annual election amount). In most cases, you will need to complete a form to enroll in or decline participation in the account. Return your completed form to your Human Resource Department on or before the last day of enrollment. Your Human Resource Department will notify you of the deadline.

In lieu of a form, some employers may have online enrollment. Your Human Resources Department will advise you if that is the case.

Do I need to have a certain insurance plan to participate?

For a Health Care Flexible Spending Account, Dependent Care Flexible Spending Account or Commute Reimbursement Account you do not need to be participating in any specific insurance plan in order to have a spending account.

Under what circumstances can the annual election be changed?

Changes to your annual election and enrollment in or termination of your Commute Reimbursement Expense Account can be made if you experience a change in transportation arrangements. Changes must be processed through your Human Resources Department. They will help you complete the proper forms and advise you of the required timing for your change.

What is the maximum amount of money that I can put in a (CREA)?

The Internal Revenue Service (IRS) determines the maximum monthly contribution. This amount is subject to change each year and is usually released to us in late October. We will notify employers of this new maximum.

If I terminate employment, what happens to the money I elected?

Because the Commute Reimbursement Expense Account (CREA) can only be used to reimburse transportation and parking expenses which enable you to travel to or park at or near your workplace, you must be an active employee to participate. When you terminate employment your CREA will also terminate. You will have 180 days (from the date of purchase) to submit claims that were incurred while you were an active employee.

Can I transfer funds between my other Flexible Spending Accounts?

No. Each account is separate and distinct. Funds can not be transferred between accounts.

Can I use my full election even though I haven’t made all the deposits to the account?

With a Commute Reimbursement Expense Account you can only be reimbursed the amount of money that has been contributed to your account.

Who determines if an expense is eligible?

To obtain reimbursement you must complete a Commute Reimbursement Request Form and also provide documentation of the expense. This could include a mass transit pass, parking pass or the proof of purchase of such.

How do I get reimbursed for Commute expenses?

To obtain reimbursement you must complete a Commute Reimbursement Request Form and also provide documentation of the expense. This could include a mass transit pass, parking pass or the proof of purchase of such.

When should I submit my reimbursement request?

You must submit your Commute Reimbursement Expense Account claims within 180 days of the date of purchase. You can submit them monthly, quarterly .. it’s up to you. But they must be submitted no later than 180 days from the proof of purchase.

Once I file an eligible expense, how long do I have to wait until I am reimbursed?

Personal Choice Account processes claims on a daily basis (Monday through Friday, excluding holidays). Generally, claims are processed within 3-4 days of being received. Some expenses may require additional information and incomplete or inaccurate claims may take longer.

Reimbursement checks are mailed to the employee's home or can be sent via direct deposit to your savings or checking account. In addition, if the reimbursement totals less than $10.00 and you have not elected direct deposit, you reimbursement will be delayed until additional expenses are received and reimbursement exceeds $10.00.

How will I know if you receive my request?

While your request will not show in your online account until it is processed, we can let you know if it’s arrived and awaiting processing. There are several ways. If you send your request via fax, write a note on the cover sheet asking that we call (or email) you to confirm receipt of the fax. One of our Customer Service Representatives will reply approximately 3-4 hours after receipt.

Once claims are received they are sorted and microfilmed. Once they return from that process they are “logged”. You can call or email us to see if your claim has been logged.

Will I receive a report showing the balance in my account?

Yes, with every reimbursement you will receive a check stub showing you the details of your account. During the third quarter of the plan year a report will be mailed to you showing your balance to that point and reminding you to use the money you have set aside or forfeit it at the end of the year. You may also access this information 24/7 on this website or by telephone/email 8:00am - 5:00pm PST.

My request has been paid but I didn’t receive the check. What should I do?

Simply contact us by phone or email so we can request a “stop pay” on the check and have it reissued to you. We are required to wait 15 days after the date of issue before a stop can be done. After requesting a reissue, if you locate the original check, do not try to cash it. Your bank may charge you a fee for attempting to do so.

I accidently shredded my check. Now what?

Simply contact us by phone or email and we will have the check reissued. If you know that the check has been destroyed, we can request a reissue right away. If you’re not sure that the check has been destroyed (i.e. you just haven’t received it) then we are required to wait 15 days after the day of issue before it can be reissued to you.

How do I report a change of address?

You can change your address with us in writing (via email or fax). Please indicate your old address and your new address. You must be sure to also change your address with your employer or there is a chance that your address will be inconsistent and could get changed back.

I have direct deposit into a bank account that I have now closed. What should I do?

You’ll need to request (in writing) that your direct deposit be cancelled. We will then set your account to pay you by check, until such a time as you complete a new direct deposit form.