Sing the Holiday Carols, Hum the Benefit Tunes


December 10, 2007

Deck the halls with boughs of holly,
Fa la la la la, la la la la.
Tis the season to be jolly,
Fa la la la la, la la la la.

When reading these words it automatically has you humming the song and thinking of all the holiday preparations to be completed. Does your list encompass year-end benefit planning? Strike the harp and join the chorus with these helpful reminders to prepare for 2008:

  • Open Enrollment. Each COBRA Qualified Beneficiary (QB) is entitled to the same options and benefits available to similarly situated active employees, including notifications, rate changes and the ability to switch to another plan, if applicable. If an outside administrator (e.g., Infinisource) provides COBRA premium billing for QBs, remember to notify the administrator of new plans, changes in rates and changes that QBs have made during open enrollment.

  • Grace Periods. These are available for Health and/or Dependent Care Flexible Spending Accounts (FSAs). Employers with calendar-year plans who adopt grace periods for the first time must amend plan documents before the end of 2007. Employers adopting a Dependent Care FSA grace period may continue to report the amount of 2007 deductions in Box 10 or the W-2, which generally must be distributed by January 31, 2008.

  • New Elections. FSAs also require new elections every plan year. It is important to update any necessary payroll records or systems and to report this information to an outside administer, if applicable.

  • Plan Changes. Any changes to ERISA plans will require notifications to affected participants in the form of a Summary of Material Modifications or an updated Summary Plan Description.

  • Health Savings Accounts (HSAs)/High-Deductible Health Plans (HDHPs). For 2008, the HSA annual contribution maximums will increase for individual ($2,850 to $2,900) and family ($5,650 to $5,800) coverage. For HSA-compatible HDHPs, the annual out-of-pocket spending limits will increase for individual ($5,500 to $5,600) and family ($11,000 to $11,200) coverage. The HDHP minimum deductibles will remain the same for individual ($1,100) and family ($2,200) coverage. The catch-up contributions available to HSA participants age 55 and over will also increase ($800 to $900).

  • Mileage Rates. The 2008 mileage rate for reimbursable medical expenses in Health FSAs and Health Reimbursement Accounts (HRAs) is $.19 per mile.

  • Transportation Plans. In 2008, monthly transportation benefits for parking will be $220. The combined limit for transit passes and vanpooling will be $115.

  • Nondiscrimination Testing. For Health and Dependent Care FSAs and HRAs, there will be new dollar limitations for key employees ($145,000 to $150,000). The limitation for highly compensated employees increases to $105,000.

Thumpetty thump thump,
Thumpety thump thump,
Look at Frosty go.
Thumpetty thump thump … benefit professionals head over the fields of information to a bright and prosperous 2008.

Infinisource clients may contact a Customer Response Representative at 866-320-3040 for assistance with providing plans and rates.