HCSA for 2014 Retirees-FedEx
09-18-2013, 11:48 AM
#11
Gets Weekends Off
Thread Starter
Joined APC: Dec 2007
Position: Retired
Posts: 404
Originally Posted by TonyC
Unspent HCSA funds is a different issue than that which you presented in your first post. When an individual does not spend all of the money set aside in the HCSA, he defaults on that money. I would imagine that the defaulted money is what is used to offset the cost of "loaning" money up front to indivuduals who use the money at a faster rate than their contributions. In other words, if you spend $1,800 on January 1st but don't contribute that amount until December 1st, somebody has to pay for the "loan." If the servicing company couldn't make a profit in total by keeping the defaulted funds, they would have no incentive to be in the business of administering the funds.
Of course, the defaulted funds are income that the individual doesn't pay taxes on, but it's also money which he doesn't get to keep when it's not spent. That's silly, really, as the money can be used to buy aspirin and bandaids. If it gets to the end of the year, take a trip to Walgreens and stock up.
What you claimed in your first post is that you did not have to contribute $1,800 in order to get the $1,800 benefit. I'll bet that if you look more carefully, you'll find that the "missing" $450 was deducted from another check or bucket of money which you have received or will receive in retirement.
.
Of course, the defaulted funds are income that the individual doesn't pay taxes on, but it's also money which he doesn't get to keep when it's not spent. That's silly, really, as the money can be used to buy aspirin and bandaids. If it gets to the end of the year, take a trip to Walgreens and stock up.
What you claimed in your first post is that you did not have to contribute $1,800 in order to get the $1,800 benefit. I'll bet that if you look more carefully, you'll find that the "missing" $450 was deducted from another check or bucket of money which you have received or will receive in retirement.
.
In response to Mayday's comment: Mark, you never paid a dime towards my wifes dental work unless you failed to use all of the funds in your HCSA either through lack of knowledge or lack of attention. No one has ever not gotten their funds out of the account if they used them in accordance with the rules of the plan.
Also, every open enrollment period, you should receive a booklet about the HCSA/DCRA. There is a section in there that addresses when coverage ends and the rules for retirement/termination. I played by the rules.
The original intent of this post was to share information with folks looking at retirement in 2014 and the upcoming open enrollment period. Thats all!!!
09-18-2013, 01:44 PM
#12
Line Holder
Joined APC: Sep 2010
Position: Retired
Posts: 42
Flying High,
Your info is spot on. The $450 you get to spend comes from all the monies that others didn't use. Some simply don't pay enough attention.
Whats more interesting is the HCSA used to be un capped. With Obama Care there is now a $2500 cap on what you can set aside annually.
Thanks for keeping us informed on these retirement issues. We are all getting closer.
Your info is spot on. The $450 you get to spend comes from all the monies that others didn't use. Some simply don't pay enough attention.
Whats more interesting is the HCSA used to be un capped. With Obama Care there is now a $2500 cap on what you can set aside annually.
Thanks for keeping us informed on these retirement issues. We are all getting closer.
09-18-2013, 01:57 PM
#13
Gets Weekends Off
Joined APC: Nov 2006
Position: 767 FO
Posts: 8,047
Originally Posted by Adlerdriver
Well, it's clear the funds aren't coming from the guy spending them. I guess I sort of see that as a problem, regardless of their source. There's no free lunch.
Someone maxing out their HCSA for the year knowing they're going to retire in Feb should raise some eyebrows. The OP didn't know and a little slack here and there isn't a big deal. I don't see this as a situation to be exploited.
Really?
Someone maxing out their HCSA for the year knowing they're going to retire in Feb should raise some eyebrows. The OP didn't know and a little slack here and there isn't a big deal. I don't see this as a situation to be exploited.
Really?
HCSA are not set up as I would set them up but the rules are the rules. Meanwhile I am going to go kick my 90 year old neighbor down the stairs. I am tired of those old geezer mooching Social Security off us guys who keel over at 67.
09-18-2013, 02:01 PM
#14
Gets Weekends Off
Joined APC: Apr 2006
Position: MD-11 Captain
Posts: 4,304
Originally Posted by FDXLAG
Think of it as joining a Country Club. Everyone pays the same dues. Is the guy who plays 2 rounds a weekend mooching off the guy who plays once a month?
09-18-2013, 02:23 PM
#15
Gets Weekends Off
Joined APC: Nov 2006
Position: 767 FO
Posts: 8,047
Originally Posted by MaydayMark
I never realized our HCSA 'dues' came with a Country Club membership. Where do I sign up for that option?
09-18-2013, 05:34 PM
#16
Gets Weekends Off
Joined APC: Aug 2007
Position: MD-11 FO
Posts: 608
Originally Posted by dogbone
Flying High,
Your info is spot on. The $450 you get to spend comes from all the monies that others didn't use. Some simply don't pay enough attention.
Whats more interesting is the HCSA used to be un capped. With Obama Care there is now a $2500 cap on what you can set aside annually.
Thanks for keeping us informed on these retirement issues. We are all getting closer.
Your info is spot on. The $450 you get to spend comes from all the monies that others didn't use. Some simply don't pay enough attention.
Whats more interesting is the HCSA used to be un capped. With Obama Care there is now a $2500 cap on what you can set aside annually.
Thanks for keeping us informed on these retirement issues. We are all getting closer.
09-19-2013, 02:43 PM
#18
Organizational Learning
Joined APC: Nov 2005
Position: Directly behind the combiner
Posts: 4,948
Originally Posted by Flyinhigh
Tony; For once in your distinguished tenure on APC you are wrong. I have never had the $450 deducted from any paycheck (pre or post retirement and I have been retired for one year.) The HCSA is a managed fund ...
The Pilot Benefit Book also discusses how the HCSA works when you terminate, retire, or are no longer eligible to participate in HCSA (pages O-19 thru O-20). Any eligible expenses incurred prior to the date you cease to be a pilot are eligible for reimbursement, and you have until May 31 of the following year to file your claims. FedEx doesn't take a hit for the pre-tax dollars that the pilot does not have withheld for the remainder of the year -- the fund administrator does.
Also, if you have unspent funds in the HCSA when you terminate, retire, etc., you may opt to continue participation under COBRA with post-tax contributions to the account. That gives you a second chance to use the funds if you decide to retire earlier than planned, or if you mis-estimated your eligible expenses.
Flyinhigh, I apologize for implying that you might be misinformed. Thanks for going easy on me, and, more importantly, thanks for the great retirement planning tip.
.
09-20-2013, 03:56 AM
#19
Gets Weekends Off
Thread Starter
Joined APC: Dec 2007
Position: Retired
Posts: 404
Originally Posted by TonyC
You are right, I was wrong, and far more than once.
The Pilot Benefit Book also discusses how the HCSA works when you terminate, retire, or are no longer eligible to participate in HCSA (pages O-19 thru O-20). Any eligible expenses incurred prior to the date you cease to be a pilot are eligible for reimbursement, and you have until May 31 of the following year to file your claims. FedEx doesn't take a hit for the pre-tax dollars that the pilot does not have withheld for the remainder of the year -- the fund administrator does.
Also, if you have unspent funds in the HCSA when you terminate, retire, etc., you may opt to continue participation under COBRA with post-tax contributions to the account. That gives you a second chance to use the funds if you decide to retire earlier than planned, or if you mis-estimated your eligible expenses.
Flyinhigh, I apologize for implying that you might be misinformed. Thanks for going easy on me, and, more importantly, thanks for the great retirement planning tip.
.
The Pilot Benefit Book also discusses how the HCSA works when you terminate, retire, or are no longer eligible to participate in HCSA (pages O-19 thru O-20). Any eligible expenses incurred prior to the date you cease to be a pilot are eligible for reimbursement, and you have until May 31 of the following year to file your claims. FedEx doesn't take a hit for the pre-tax dollars that the pilot does not have withheld for the remainder of the year -- the fund administrator does.
Also, if you have unspent funds in the HCSA when you terminate, retire, etc., you may opt to continue participation under COBRA with post-tax contributions to the account. That gives you a second chance to use the funds if you decide to retire earlier than planned, or if you mis-estimated your eligible expenses.
Flyinhigh, I apologize for implying that you might be misinformed. Thanks for going easy on me, and, more importantly, thanks for the great retirement planning tip.
.
09-21-2013, 03:32 AM
#20
Line Holder
Joined APC: Sep 2006
Position: B757/CA
Posts: 61
Only prescription drugs can be used with your Health Care Spending Account. From the Pilot Flexible Spending Accounts HCSA booklet; "Effective in 2012, over-the-counter (OTC) medications require a prescription in order to be considered an eligible expense under the HCSA". There are exceptions, go to www.wageworks.com for the most up-to-date information.
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