St. Charles City-County Library

Flexible Spending Plan

The St. Charles City-County Library District utilizes Section 125 and 129 of the Internal Revenue Code to provide employees with the opportunity to realize tax savings through pre-tax spending accounts.

The flexible spending accounts allow participants to make pre-tax contributions to accounts used to pay for eligible medical expenses, dependent care expenses, and group insurance premiums.  Participants are subject to eligibility rules and receive benefits as outlined in the plan document, which may be amended during the plan year or as IRS regulations change.

Employees who hold positions budgeted at 17.5 hours or greater per week are eligible to enroll in the flexible spending account plan sponsored by the Library District.  Eligibility shall begin upon the first day of the month following or coinciding with the hire date. 

Participants must re-enroll for the Medical and Dependent Care Spending Account each year by completing a new enrollment form during the annual open enrollment period; contribution amounts may be changed at that time.  The District will notify all eligible employees of the annual open enrollment period.

The District shall pay administrative fees connected with this benefit but will not be responsible for payment of benefits placed under the FSA unless such benefits are agreed to under separate policies.

The District may set up a separate account or accounts to disperse the money and may place funds in the account to insure coverage of eligible claims. 

The District shall administer a fund to reimburse employee charges for District supplied insurance, a fund for miscellaneous medical charges and deductions not covered under insurance if allowed under Section 125 and related sections of the Internal Revenue Code, and a fund for dependent care expenses allowed under Section 129 and related sections of the Internal Revenue Code.   Employees may not under the provisions of Section 125 and 129 transfer monies between accounts.

Employee contributions to the Flexible Spending Accounts will be capped according to Internal Revenue guidelines.   The plan year shall run from January 1 to December 31 of each year and will include a grace period of two months and 15 days immediately following the plan year as described in the Plan Document.    Unused balances may not carry over to the next year. 

Disbursements of unused balances, less beginning contributions, and operational expenses, but crediting interest earned in the account, with the exception of interest charged against initial balances placed by the District to pay claims, may be distributed equally to all participants per spending account fund.  However, no amount less than $5.00 per employee shall be dispersed. 

(Revision Approved 12/8/08, 11/13/12)