Enabling partial-year spending account enrollments

If you enable employees to use the web benefits enrollment process to specify elections for Spending Account plan (Contribution Type = 5; Record Type = 6) during the plan year, then you must complete this step.

Because spending plan account plans are tied to a flex plan, enrollments are usually based on a 12-month period. When an employee enrolls in this type of plan mid-year with a flat amount contribution, the number of cycles remaining in the year must be specified. This is necessary for the system to perform the correct checks against annual limits that are defined on the plan.

Use Benefits Cycle Rules (BS06.1) to manage benefits cycle data. The form enables Web Benefits Enrollment to handle mid-year hires and mid-year changes for spending account plans. These plans are tied to flexible plans on Benefit Plan (BN15.1) that have a Contribution Type of 5 (Contribution Limits), where employees specify a flat dollar amount.

You must perform this procedure if your organization offers partial-year spending account enrollments.