State of California

M E M O R A N D U M


To:       PERSONNEL MANAGEMENT LIAISONS                     Date:  October 27, 1992
                                                  REFERENCE CODE:  92-108

          THIS MEMORANDUM SHOULD BE DISTRIBUTED TO:
          ALL PERSONNEL OFFICERS, PERSONNEL TRANSACTIONS SUPERVISORS
          AND PERSONNEL TRANSACTIONS STAFF

From:     Department of Personnel Administration


Subject:  Address Change for Third Party Administrator of the 1992 FlexElect
          Reimbursement Accounts

          Attached is a letter that is being sent to all participants in a 1992
          FlexElect Medical and/or Dependent Care Reimbursement Account.  The purpose
          of the letter is to notify them that effective immediately, Anthem Group
          Services in Dallas, Texas has moved its operations to their parent company,
          Acordia Corporate Benefits in Indiana.  All Medical and/or Dependent Care
          Reimbursement Account claims for the 1992 FlexElect Plan Year are now to be
          sent to the following address:

                    Acordia Corporate Benefits, Inc.
                    P.O. Box 10
                    Greenwood, Indiana  46142

          In addition to the letter, we are also sending participants mailing labels
          with the new address and a small supply of claim forms.  For the remainder
          of the 1992 Plan Year, we will continue to use the claim form which shows
          Anthem's address in Dallas.  If a participant should inadvertently send a
          claim to the Dallas address, it will be forwarded to Acordia in Indiana,
          via overnight express mail.

          The following toll-free telephone number has been established in Indiana,
          1-800-433-4169.  The old Dallas telephone number, which is on the FlexElect
          claim form, will remain in effect until January 1, 1993.  Calls placed to
          Dallas will automatically be forwarded to Indiana.

          As we indicated in our letter to the participants, Anthem assures us that
          there will be a smooth transition to Acordia, and there should be no change
          in the claims processing and schedule for issuance of reimbursement checks.

          This address change only impacts 1992 reimbursement account participants.
          The Department of Personnel Administration (DPA) will be contracting with a
          new third party administrator effective January 1, 1993 for the 1993
          FlexElect Plan Year.  DPA will be sending a notification letter to the 1993
          participants in December, 1992, and you will be receiving more information
          on this subject in a future PML.

          If you have any questions regarding this information, you may contact
          Janice Yates, Statewide FlexElect Coordinator at (916) 324-0535 or ATSS
          454-0535.



          Patricia Pavone, Chief
          Benefits and Training Division

          Attachment