NRECA Employee Benefits Weekly

125 Plans and HRAs: The Documents You’ll Need for 2020 Plans Are Online

Posted on Posted in Tax-advantaged Accounts

If your cooperative plans to offer the CBA-administered 125 Plan and/or health reimbursement arrangement (HRA) plan in 2020, keep in mind that completed documents must be returned to Cooperative Benefit Administrators, Inc. (CBA) by Friday, September 27.

The sample documents your co-op will need for 2020 plan year adoptions and amendments, enrollments and elections, along with other information for the 2020 plan year are now available on the NRECA Employee Benefits website:

Which documents do we need to complete?
Refer to the flier Making Changes to Your 125 Plan or Making Changes to Your HRA Plan for details on what’s required for plan adoptions and other plan changes.

Note: If your co-op sponsors a 125 plan, you must submit a payroll calendar each year for each subgroup administered—whether you are making changes to your plan or not. Plan dates in the payroll calendar must all be in the 2020 calendar year.

New flex plan contribution maximum
If your co-op chooses, you can adopt a new participant contribution maximum of $2,700 for health flexible spending accounts (health FSAs) and limited-use health FSAs for the 2020 plan year.

Open enrollment: November 1–29
The period for enrolling your employees in tax-advantaged plans will run from November 1–29. You’ll receive more information on the open enrollment process in the coming weeks, via email.

Coming soon: Restated SPDs
Summary plan descriptions (SPDs) for the 125 plan and HRA plans are being restated this year, as they are every five years. Updated sample SPDs will be made available to co-ops in early September. These documents will need to be revised by your co-op to reflect its plan choices, and we recommend that you have them reviewed by your co-op’s legal counsel; then your co-op will need to distribute the revised SPDs to its participants. Look for more information in Benefits Bulletin and NRECA Employee Benefits Weekly in the coming weeks. For questions about adopting plans, plan changes, or open enrollment, contact CBA at 866.673.2299 and choose option 1, then 4, or email cba.fsa.hra@nreca.coop.

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