SECTION 125 FLEXIBLE ENROLLMENT


The district has established a voluntary Flexible spending account plan under IRS Section 125. This plan allows employees to enroll in payroll deductions for certain health/dental and dependent care spending including your payroll deductions for health insurance. These deductions are used to reimburse the employee after actual expenditures and have the privilege of being tax sheltered under the IRS code.  During the contract renewal time the employee will have the opportunity to enroll for the next school year. HR will have the enrollment form included in the employee’s packet. In order to get reimbursed for expenses incurred the employee must submit a reimbursement form and submit to Local Government Center.

Important Flexible Spending Account Update

Change to Over-the-Counter Medications Reimbursement

Effective January 1, 2011 and as part of recently enacted healthcare reform legislation, a medicine, drug or insulin must be prescribed by a physician in order for incurred related expenses to be reimbursable.

At that time, Flexible Spending Account (FSA) funds can no longer be used for over-the-counter (OTC) drugs and medicines (e.g., Advil, cough medicine, antihistamine and Benadryl). You
will, however, be able to continue using your FSA funds and Benny™ Prepaid Visa® Card for purchasing prescribed medications as well as OTC supplies and equipment like bandages and reading glasses.

New Hampshire Local Government Center (LGC) anticipates further guidance from the IRS regarding this legislation. Based on current interpretation, a revised Healthcare FSA List of
Eligible/Ineligible Expenses is now available at www.nhlgc.org. To download a copy, click on FSA Program Individual > Healthcare FSA List of Eligible/Ineligible Expenses. Please contact LGC at 800.527.5001 or This email address is being protected from spambots. You need JavaScript enabled to view it. with related questions or for further assistance.

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