The IRS has provided us with a method of reducing the taxes we have to pay on our wages and salaries.  Under a rule called Section 125, associates are allowed to pay for certain expenses with PRE-TAX dollars.  By so doing, we reduce our federal, state, and social security taxes.

ELIGIBILITY: Regular full-time associates, and part-time associates with over 5 years of service and 1000 hours worked the previous year.

EFFECTIVE DATE: The January 1st following thirty-one (31) days of employment.

COST: The Company pays Administrative costs.

BENEFIT: The Flexible Spending Account Plan allows an associate to defer up to $5,000 into a reimbursement account for medical, dental, and optical expenses, and, up to $5,000 for dependent care expenses.  A list of eligible expenses is available.

Associates on the payroll on January 1st may participate by electing to reduce their pay by an amount they choose.  Once an amount is elected it cannot be changed during the calendar year unless there is a change in family status or employment status.

All premiums for health, dental, vision, life, and dependent life are automatically paid with pre-tax dollars. This reduces the actual cost to the associate.

IRS rules require that amounts not used for eligible expenses during the plan year will be forfeited.  It is advisable to plan accurately when calculating the amount to be deducted.

Associates must enroll annually every January 1.  This program does not carry over year to year.

Information about the Flexible Spending Accounts can be secured by calling 1-800-234-1229, or www.dbsbenefits.com.

EXPENSES ELIGIBLE FOR REIMBURSEMENT: Examples are available on the application form, which is available from Benefit Services.

TERMINATION: Three options are available to participating associates upon termination.    This is a complex plan and details on these options are available from your Human Resource Manager or Benefit Services.