State of California M E M O R A N D U M REFERENCE CODE: 99-025 DATE: May 19, 1999 TO: Personnel Officers Personnel Transactions Supervisors Personnel Transactions Staff FROM: Department of Personnel Administration Benefits Division SUBJECT: FlexElect Program Plan Year 2000 CONTACT: William Page, Benefits Program Analyst (916) 445-9801, CALNET 485-9801 FAX: (916) 322-3769 OFFICE VISION: DPA(WILLIAMPAGE) INTERNET: WILLIAMPAGE@DPA.CA.GOV The annual open enrollment period for the 2000 FlexElect Plan Year is September 1, 1999 through October 15, 1999. This memo provides information on the communication material that will be mailed to employees and how department personnel offices can order the 2000 Plan Year FlexElect Brochures. In addition, information is provided regarding important changes for the 2000 Plan Year and the Consolidated Benefits (CoBen) Cash Option. Departments need to be aware that depending on the outcome of the current collective bargaining process, benefits available in the State's FlexElect Program could be impacted. The Department of Personnel Administration (DPA) will ensure that employees who enroll during the FlexElect open enrollment, as well as personnel office staff, are advised of any program changes. Important Changes Hunt, Dupree, Rhine & Associates, Inc. (HDR) is currently the company that handles the record keeping for both the Medical Reimbursement Account and the Dependent Care Reimbursement Account. The State's contract with HDR expires December 31, 1999. DPA is currently in a bidding process for a recordkeeper to begin January 1, 2000. Once the contract is awarded, information on the selected recordkeeper for the 2000 Plan Year will be sent to Personnel Offices and participants enrolled in the reimbursement accounts. Consolidated Benefits Program The Consolidated Benefits (CoBen) Program, which is a component of the State's FlexElect Program, improves the way the State contributes toward health, dental, and vision benefits and allows employees to receive additional taxable cash each month, if their benefit choices are less than their benefit allowance. At the time the FlexElect brochure was being printed, CoBen had been implemented for Bargaining Units 8, 16, 18, and 19, and excluded employees. These employees' benefit allowance is automatically established, therefore, no enrollment form is required. Additionally, these employees are eligible for the CoBen Cash Option in lieu of health or health and dental benefits, thus they are not eligible for the FlexElect Cash Option. Should eligible employees want to enroll in the CoBen Cash Option, they will need to complete a Consolidated Benefits Cash Enrollment Election Form (DPA 666). Keep in mind, as with the FlexElect Program Cash Option, once employees enroll in the CoBen Cash Option for the first time, they will not need to re-enroll for each succeeding plan year to continue their enrollment. Implementation of CoBen will not impact those employees enrolled in the Dependent Care Reimbursement Account (DCRA) or Medical Reimbursement Account (MRA). The DCRA and MRA will remain under the FlexElect Program. For all other eligible employees, the current benefits under the FlexElect Program will continue as described in the FlexElect brochure. Employee Communications Departments are responsible for informing their employees of the open enrollment period, the available options, and the enrollment process for the FlexElect Program and CoBen Cash Option. We encourage departments to conduct awareness sessions for employees prior to the open enrollment period. DPA staff are also available to answer FlexElect Program questions. You may contact Jennifer Sandness, Benefits Program Representative, at (916) 327-6429 or CALNET 467- 6429 for assistance. DPA will be communicating the FlexElect Open Enrollment Period to employees using a variety of methods. A notification will be mailed in August to the home of all employees currently enrolled in the 1999 FlexElect and CoBen Cash Option informing them that they will be automatically reenrolled for the 2000 Plan Year. Permanent-Intermittent employees who are required to reenroll in the Cash Option each year will also receive a notification highlighting their enrollment requirements. Postcard reminders will also be sent to employees currently enrolled in a 1999 FlexElect Reimbursement Account. In addition, a global message will be printed on the bottom of the August 1999 pay warrants regarding the open enrollment period. FlexElect Brochures The FlexElect Brochure is currently being revised for the 2000 Plan Year and will be available in early August. To order a supply of brochures, please complete the attached request form (Attachment A) and fax or mail it back to William Page, as indicated on the top of the request form, by June 25, 1999. When indicating the number of brochures your department will need, please also include the number needed for your field offices, except for the following departments: Corrections, Developmental Services, Education, Mental Health, and Youth Authority. These departments should only order brochures needed for employees located at their headquarters office. A copy of this PML will be sent to all field offices associated with these departments, and they will be asked to submit a separate request. FlexElect Video The information contained in the FlexElect training video, which was produced for the 1998 Plan Year, may still be used for employee awareness sessions. There have been a few minor changes since the video was originally produced (i.e., administration fee has been changed from $3.00 to $1.00 and the term "Family Status Change" has been changed to "Changes in Status Events." However, the video contains very useful information and is available upon request. The information contained in this video focuses on the Medical and Dependent Care Reimbursement Accounts and does not include information on the Cash Option. To order a copy of the video, please indicate your request by completing Section B on Attachment A. If you have any questions regarding the information contained in this PML, please contact William Page at (916) 445-9801 or CALNET 485-9801. Kathie Vaughn, Chief Benefits Division Attachments will be distributed via mail.