BPC Breaking News

BPC Summer Hours

Thu, 6 Jun 2013 06:50:53 CST

BPC has been named to the list of the Best Places to Work in Illinois 2013. Best Places to Work is a statewide survey and awards program designed to identify, recognize and honor the best places of employment in Illinois, benefiting the state's economy, workforce and businesses.

To honor and reward our employees for their commitment to our organization, we will be closing our offices at 3:00 p.m. Central Standard Time on Friday’s for the months of June, July and August.

If you have any questions or need additional information, please contact BPC at (217) 355-2300 or (800) 355-2350

or visit us at bpcinc.com.

Thank you

Benefit Planning Consultants, Inc.

IRS Releases New 2014 HSA and HDHP limits

Mon, 6 May 2013 04:54:55 CST

The IRS has released the 2014 cost-of-living adjustments affecting HSAs and HDHPs. Only the HSA contribution limits and the HDHP out-of-pocket maximums will increase for 2014. The HDHP minimum required deductibles will be unchanged. Here are the details:

HSA Contribution Limits. The 2014 annual HSA contribution limit for individuals with self-only HDHP coverage is $3,300 (a $50 increase from 2013), and the limit for individuals with family HDHP coverage is $6,550 (a $100 increase from 2013).
HDHP Minimum Required Deductibles. The 2014 minimum annual deductible for self-only HDHP coverage is $1,250 and the minimum annual deductible for family HDHP coverage is $2,500. Both are unchanged from 2013.
HDHP Out-of-Pocket Maximums. The 2014 maximum limit on out-of-pocket expenses (including items such as deductibles, co-payments, and co-insurance, but not premiums) for self-only HDHP coverage is $6,350 (a $100 increase from 2013), and the limit for family HDHP coverage is $12,700 (a $200 increase from 2013).

BPC Named to the List of Best Places to Work in Illinois 2013

Fri, 3 May 2013 04:25:13 CST

BPC has been named to the list of the Best Places to Work in Illinois 2013. Best Places to Work is a statewide survey and awards program designed to identify, recognize and honor the best places of employment in Illinois, benefiting the state's economy, workforce and businesses.

“Being named to the list of Best Places to Work in Illinois is a great honor for BPC because it recognizes the dedication and strong relationships of our professional staff, partners and clients. BPC is intentional about cultivating a corporate culture that focuses on lifting up people and providing service excellence to our co-workers and our clients”, said BPC CEO, Habeeb Habeeb. “At BPC, the administration of employee benefits is simply the service we provide. But we attribute our success and our rapid growth to the passion we have and the high value we place on our relationship with our clients and partners. Our niche is to place the client and the client’s employees first and to look at things from their point of view. BPC is small enough to care, and large enough to do the job, serving 1800 clients ranging from two to 20,000 employees.”

BPC has approximately 60 employees in Illinois and Indiana and is continuously adding new talent to its growing team and opening new employment opportunities. BPC is comprised of professionals in Benefits Administration, Retirement Administration, Sales, Human Resources, IT, Marketing and Communications, Compliance and Office Support.

Companies from across the state entered the two-part process to determine the Best Places to Work in Illinois. The first part consisted of evaluating each nominated company's workplace policies, practices, and demographics. This part of the process was worth approximately 25% of the total evaluation. The second part consisted of an employee survey to measure the employee experience. This part of the process was worth approximately 75% of the total evaluation. The combined scores determined the top companies and the final ranking. The independent Best Companies Group managed the overall registration and survey process in Illinois and also analyzed the data and used their expertise to determine the final rankings.

BPC will be recognized and honored at the Best Places to Work in Illinois awards ceremony coordinated by The Daily Herald Business Ledger on May 16.

About BPC

BPC, an award-winning third party administrator of employee Retirement and Benefit Plans, is one of the longest operating firms in the Midwest. Since 1979, BPC's certified professionals have been helping businesses on the design, implementation and administration of Retirement Plan Services such as 401(k), 403(b), 457, Money Purchase, Profit Sharing and ESOP; and Benefit Plan Services such as Flex, HRA, HSA, Sec.125 Cafeteria Plans, COBRA, Eligibility Audits, Transportation Plans, and Identity Theft Protection.

In 2013 BPC became one of the first TPAs in the country to be certified by the Centre for Fiduciary Excellence (CEFEX) for Retirement Plan Administrations Services. BPC was named AAIM Employer's Association Employer of the Year in 2010 and Champaign County Chamber of Commerce Small Business of the year in 2006. BPC is led by Habeeb Habeeb, President and CEO. BPC was founded in 1979 by Chairman of the Board, Scott Reichard. BPC’s headquarters is based in Champaign, Illinois and has offices in Indianapolis, Indiana. Learn more at www.bpcinc.com.

MEDIA CONTACT: Kristin Williamson, Director of Public Relations, BPC, Inc., +1-217-355-2300, kristin.williamson@bpcinc.com

BPC Benefit Cards Now Have PIN Capabilities

Mon, 1 Apr 2013 02:29:14 CST

Due to new legislation, effective April 1, 2013 you will have the option to pay for eligible Flex expenses using a PIN (Personal Identification Number) when you use your BPC Benefits Card.

In 2010, Congress passed the Dodd-Frank Wall-Street Reform and Consumer Protection Act which requires that debit cards provide consumers with the ability to access their accounts through at least two unaffiliated payment networks to reduce debit card costs and increase the competition in payment processing. Today the BPC Benefit Card provides one network through MasterCard. In order to comply with the law, the benefit card company must add a second network. It is not technically feasible to add a second signature network, so the only practical alternative is to add a PIN network solution.

How do I view/retrieve my new PIN?

1. BPC recently launched a new online account manager. If you have not already registered for the site, you can learn how to do so here. You, as a BPC Benefit Card holder, can then log into your account and navigate to the account information page. You can view your existing cards (only the last 4 digits of the card will display). Next to each entry you will see a View PIN link. Clicking the link will open a new window that displays the PIN for your Benefit Card.

2. Dependent PINs will be listed under the participant’s account as well. The primary account holder should login to retrieve PINs for all cards (including dependents).

To use your PIN at the point of sale, simply select "Debit" and enter your PIN when prompted.

Using a PIN is not required. You can continue to sign for BPC Benefit Card purchases, just as you’ve done in the past, by choosing "Credit."

If you forget your PIN at the time of a sale, you can request that the merchant run the transaction using the signature process. You would then sign the receipt, as you have done in the past with your BPC Benefits Card.

Some merchants may not have updated their IIAS system to work with the PIN system. If you use your BPC Benefit Card as a "Credit" card and the signature process, as you have in the past, the IIAS system at the merchant will work to approve the Flex Eligible items.

You may contact the BPC Flex Department at 217-531-9000 or 877-272-8880 if you have any questions.

BPC Launches New Online Account Manager

Mon, 1 Apr 2013 02:15:55 CST

BPC is pleased to announce that the enhanced online portal for managing your BPC Benefits account is now live! The new portal provides plan participants with improved efficiency, comprehensive account information, and handy tools and resources to help them get the most out of your benefits.

The new solution provides one stop-shop access:

Submit claims and documentation online
Sign up for direct deposit
View account balances and detailed transaction history
Download electronic statements
Learn more about your benefits with videos and tutorials

It's important to note that there is no change to the account numbers and you can continue to use your existing BPC Benefits Debit Card, if applicable. Additionally, if you’re a BPC Benefits Card holder, the new online portal will allow for Benefits Debit Card holders to request a PIN, per the Durbin Amendment of the Dodd-Frank Wall Street Reform and Consumer Protection Act. Learn more about using a PIN with your debit card here.

The new site can be accessed by clicking here or by clicking the "Access My BPC Online" in the upper right-hand corner of bpcinc.com. To register for the new site, participants will need to know their Employee ID as well as their Employer ID. Should participants have any trouble registering for the new site, a member of the BPC Team is happy to help.

Employers will not need to register on the new site to access the Employer Tools options. They can simply click "Employer Tools Login" located at the top right corner.

Thanks to the advancement and flexibility of the new portal, we'll be able to introduce a number of new tools, including a mobile app, in the very near future. We look forward to sharing these enhancements with you soon. We hope you enjoy the new online account experience.

If you have any questions, please contact us at 800-355-2350 or info@bpcinc.com.

BPC Among First in the Nation to Earn CEFEX Designation for Retirement Plan Services

Tue, 12 Feb 2013 11:10:11 CST

BPC, Benefit Planning Consultants, Inc., has become one of the first third party administrators in the nation to earn certification from CEFEX, Centre for Fiduciary Excellence, LLC, for Retirement Plan Services. After successfully completing an in-depth independent audit, CEFEX certified BPC as adhering to the American Society of Pension Professionals & Actuaries (ASPPA) Standard of Practice for Retirement Plan Service Providers.

BPC's Retirement Plans Division serves plans with assets exceeding 1.1 billion dollars for approximately 700 employers and more than 30,000 retirement plan participants across the nation. "The CEFEX designation for Retirement Plan Service Providers recognizes the high bar BPC set for itself and has been operating at for more than 30 years," said Chief Executive Officer of BPC, Habeeb Habeeb. "I am proud that we passed this rigorous certification and it is a testament of the hard work and integrity demonstrated by our highly-trained professionals."

"The CEFEX certification provides assurance to fiduciaries and their stakeholders that BPC has demonstrated adherence to the best practices in the recordkeeping and administration industry," said Managing Director of the Centre for Fiduciary Excellence, Carlos Panksep. "The successful completion of the independent assessment is an extraordinary indication of a firm's accountability to its clients."

The annual certification process involves a detailed assessment of operational data and procedures, followed by on-site interviews with key personnel. BPC is registered at http://www.cefex.org/registrationDetails.aspx?reg=10160 where its certificate can also be viewed. A summary of the Standard can be viewed by clicking on the certificate.

About Benefit Planning Consultants (BPC)

Benefit Planning Consultants (BPC), Inc., an award-winning third party administrator of employee Retirement and Benefit Plans, is one of the largest and longest operating firms in the Midwest. Since 1979, BPC's certified professionals have been helping businesses on the design, implementation and administration of Retirement Plan Services such as 401(k), 403(b), 457, ESOP, Money Purchase, Profit Sharing and ESOP; and Benefit Plan Services such as Flex, HRA, HSA, and Sec.125 Cafeteria Plans, COBRA, Eligibility Audits, Transportation Plans, and Identity Theft Protection.

BPC was named AAIM Employer's Association Employer of the Year in 2010 and Champaign County Chamber of Commerce Small Business of the year in 2006. The organization is led by Habeeb Habeeb , President and Chief Executive Officer. Mr. Habeeb serves on the Board of Directors for the Employers Council on Flexible Compensation and the Illinois Chamber of Commerce. BPC was founded in 1979 by Scott Reichard, Chairman of the Board. Learn more at www.bpcinc.com .

MEDIA CONTACT: Kristin Williamson, Director of Public Relations, Benefit Planning Consultants, +1-217-355-2300, kristin.williamson@bpcinc.com

Transit and Parking Benefits Increase to $245 Per month

Mon, 14 Jan 2013 10:36:41 CST

On January 11, 2013, the Internal Revenue Service released annual inflation adjustments for tax year 2013, the monthly limit for transit and parking is $245, up from $240 in tax year 2012. The American Taxpayer Relief Act (ATRA) of 2012 extended the increase in the monthly exclusion for employer-provided transit and vanpool benefits through 2013 so that it would be the same as the exclusion for employer-provided parking benefits and also provided a retroactive increase for transit in 2012.

CEO Habeeb Habeeb elected to Illinois Chamber of Commerce Board of Directors

Tue, 18 Dec 2012 11:53:31 CST

Habeeb Habeeb, President & Chief Executive Officer of BPC, Inc. (Benefit Planning Consultants) was approved as a new member of the Illinois Chamber of Commerce Board of Directors at their quarterly meeting on December 13, 2012.

The Illinois Chamber of Commerce promotes the interests of Illinois business by working to improve the state’s business climate. The Illinois Chamber aggressively advocates legislation and public policies that support economic growth, and is a source of timely and reliable information on matters important to its members, Illinois employers and the general public.

“We are looking forward to utilizing Habeeb’s expertise especially as we help employers move toward implementation of the ACA,” said Doug Whitley, President & CEO of the Illinois Chamber.

About Habeeb Habeeb:

Habeeb G. Habeeb is the president and CEO for Benefit Planning Consultants (BPC, Inc.), an Employee Benefits Administration firm based in Champaign, Illinois, and is the founder of H Squared, an initiative focused on the idea of taking the good in life to a higher power.

Born in Lebanon, Mr. Habeeb has been an Illinois resident since 1973 and has 36 years of business management and operational experience. Habeeb has held volunteer leadership roles in various community and industry organizations such as the Champaign County Chamber of Commerce Board of Directors, Employer’s Council on Flexible Compensation Board of Directors, former board chairman for Champaign County First, The Illinois Chamber Healthcare Council, Senator Mark Kirk’s Small Business Advisory Committee, and Chairman of the Champaign County Republican Central Committee.

Habeeb is passionate about helping people and organizations thrive through the power of kindness and positivity. He frequently speaks on these topics and hosts a popular “Motivational Minute” series. He and his wife Joy reside in Champaign. Their children Paul and Hannah attended the University of Illinois.

Connect with Habeeb online by following @HabeebHabeeb on Twitter or Facebook.com/habeebsquared.

New Medical Mileage Rate for 2013

Fri, 30 Nov 2012 04:40:27 CST

The IRS recently announced a 1 cent increase in the standard medical mileage rate for use of an automobile to obtain medical care. The new rate for 2013 is 24 cents per mile. This means that transportation expenses that are deductible medical expenses under Code § 213 generally can be reimbursed on a tax-free basis by a health FSA or HSA at a rate of 24 cents per mile.

BPC’s team of certified benefit administration professionals are continuously monitoring changes to the IRS code and are available to guide you through implementation. If you have questions about this rate change, please contact a member of the BPC team at 800-355-2350.

ID Theft Makes Headlines, Again. Are Your Employees Protected?

Fri, 30 Nov 2012 09:14:38 CST

On Friday, the State of South Carolina reported that foreign hackers accessed 3.6 million social security numbers along with 387,000 credit card, impacting most of its residents. This report comes just days after The New York Times reported that hackers swiped credit card data for customers who shopped at 63 Barnes & Noble stores.

As you know, this headline is being written all too often these days, which is why BPC has teamed up with LifeLock Identity Theft Protection to safeguard your employees, with the fastest growing employee benefit, at no cost to your company.

Identity theft is personal. But when it happens to an employee in or out of the office, their personal problem becomes yours. Last year, 11.6 million U.S. adults were victims of identity fraud. The resolution time for one new account fraud can take up to 59 hours which mostly occurs during the 9am-5pm business day.

Now with LifeLock Identity Theft Protection from BPC, your business can maintain productivity and modernize its benefit package at no cost to the company. LifeLock provides 24/7 monitoring of accounts, and if an employee became a victim of identity theft, LifeLock will resolve matters on their behalf and cover each member with LifeLock's $1 Million Dollar Total Service Guarantee. And, by offering LifeLock through BPC, your employees receive LifeLock at a rate much lower than they could obtain on their own.

Offering LifeLock through BPC couldn't be easier. There's no cost to you, participation is voluntary, and only a minimum of two enrolled employees is required. Plus, BPC and LifeLock provides unparalleled support and does most of the work for you.

Watch a one minute video on the benefits of adding LifeLock as a voluntary employee benefit and explore a number of handy resources such as Frequently Asked Questions and more on our website.

Contact the BPC team today at 800-355-2350 or email us to learn how to start offering LifeLock, the fastest growing employee benefit, to your employees.

Special Alert: IRS Announces 2013 401(k) Plan Limits

Thu, 18 Oct 2012 04:07:32 CST

On October 18, 2012, the Internal Revenue Service (IRS) announced the cost of living adjustments affecting dollar limitations for pension plans for 2013. Several of the pension plan limitations changed for 2013 due to the increase in the cost-of-living index.

BPC Partners with FSAStore.com to Help Maximize Your FSA Funds

Wed, 19 Sep 2012 12:37:49 CST

BPC is pleased to announce that we’ve partnered with FSAStore.com to help participants maximize their FSA funds. FSAStore.com is the only one-stop-shop stocked exclusively with FSA-eligible products and services so there are no guessing games as to what is and isn't reimbursable which is what consumers face every time they walk into a drugstore. In addition to more than four thousand FSA-eligible products the site offers a national provider database of FSA-eligible services and an FSA Learning Center. FSAStore.com accepts all FSA-debit and major credit cards, offers 24/7 customer service, one-to-two-day turnaround and free shipping on orders $50+. Get the most out of your Flexible Spending Account this year with FSAStore.com.

Supreme Court Upholds the Affordable Care Act

Fri, 29 Jun 2012 01:58:31 CST

Employer plan sponsors and administrators should continue implementing ACA provisions

The Supreme Court upheld the Affordable Care Act (ACA). In the 5-4 decision authored by Chief Justice Roberts, the Supreme Court found that the individual mandate provisions of the ACA were constitutional as a tax. The relevant quote from the section on the mandate is as follows: "Our precedent demonstrates that Congress had the power to impose the exaction in Section 5000A under the taxing power, and that Section 5000A need not be read to do more than impose a tax. This is sufficient to sustain it." You can read the decision in full here.

As a result of this ruling the ACA will continue to stand. This means that employer plan sponsors and plan administrators should continue their efforts to ensure compliance with all of the ACA's provisions (e.g., including the upcoming exchange and minimum coverage requirements, looming deadline to distribute summaries of benefits and coverage (SBCs), to calculate and report CER and reinsurance fees and taxes, and to report benefits on Form W-2s). As always, BPC remains committed to helping our clients implement ACA provisions in a compliant and efficient manner.

We believe the affirmation of ACA is an opportunity for the benefits industry and elected leaders to continue the conversation on how employers and employees can get the maximum value out of flexible compensation and individual account plans–including flexible spending account (FSAs), Health Reimbursement Arrangements (HRAs), and Health Savings Accounts (HSAs). BPC will continue to advocate for measures such as the repeal of the FSA “use it or lose it” rule on behalf of your company to ensure that your benefit plans are working for you.

If you have questions on how ACA provisions impact your benefit plans, please contact us via email or 800-355-2350.

Regulatory Update: 408(b)(2) & 404(a) Fee Disclosure Regulations

Wed, 13 Jun 2012 02:43:49 CST

On February 2nd the Department of Labor (DOL) issued final new incoming plan-level fee and expense disclosure regulations for ERISA retirement plans. Also triggered that day are separate new incoming DOL regulations for participant investment directed plans for participant-level fee and expense disclosures, and new investment disclosures for designated plan investment options.

This BPC regulatory update addresses -

What are these two new regulations?
When are these regulations effective?
What retirement plans are affected?
Who are plan service providers?
What is your role as the plan fiduciary?
What are the penalties for non-compliance?
How will BPC help your plan comply?

Please realize - ERISA industry service providers are just now finalizing how to meet and help sponsor clients meet these just released regulations. You should receive separate disclosure communications from each of your plan service providers over the next few months.

What are these two new regulations?

ERISA 408(b)(2) - Requires all plan service providers to fully disclose to the plan fiduciary (usually the plan sponsor) information on all fees, compensation and services provided to the plan, and requires the plan fiduciary to review the fees for reasonableness and appropriateness. The intent of this regulation is to allow a plan sponsor to better determine if the compensation paid to their plan service providers from plan assets and participant accounts is appropriate for the scope and quality of services provided by that service provider.

ERISA 404(a) - Requires the plan fiduciary to communicate all plan fees to eligible employees, plan participants and plan beneficiaries with the right to direct investments, plus specific information about the plan's investment options. The intent of this regulation is to allow those covered by the plan to make informed decisions about their plan investment options and available plan services. This regulation requires those covered by the plan be given an annual statement that provides a general explanation on their investment choices, investment fees and expenses for each option, and investment performance / benchmarking information. Each participant with a balance in the plan must receive a quarterly statement that provides a detailed explanation of any fee actually assessed to their account during the previous quarter. One major difference between the two notices is that the annual notice is required to be provided to ALL ELIGIBLE employees, while the quarterly statement is only required to be provided to participants WITH A BALANCE in the plan.

When are these regulations effective?

ERISA 408(b)(2) - For existing plans a plan fiduciary must receive a service and fee disclosure from their plan service providers no later than 7/1/2012. A plan fiduciary hiring a new service provider on or after 7/1/2012 must obtain and review the service provider's disclosures before engaging any new provider. The DOL did NOT mandate a reporting format for service provider disclosures. They did however provide a sample as an exhibit in these regulations.

ERISA 404(a) - Initial, quarterly and ongoing participant disclosures are effective 60 days after 408(b)(2) is effective, which begins 8/30/2012. All Eligible employees currently covered by a plan must be given an initial 404(a) disclosure by or before 8/30/2012. For calendar year-end plans, the first quarterly participant 404(a) disclosure for covered employees is required by 11/14/2012, which is effectively the 9/30/2012 quarterly statement for calendar year plans. The DOL has NOT yet mandated a reporting format for investment disclosures. The DOL did provide a detailed roadmap for what information must be shown in the investment option disclosures.

What plans are affected?

ERISA 408(b)(2) - This regulation APPLIES to all ERISA defined contribution plans. This includes, for example: 401(k) plans, profit sharing plans, money purchase pension plans, ERISA 403(b) plans, ESOPs, and to all ERISA defined benefit plans. This regulation DOES NOT APPLY, for example, to certain frozen 403(b) plans, non-ERISA 403(b) plans, HR-10 plans, SEPs, SIMPLE Plans and IRAs.

ERISA 404(a) - This regulation applies to all ERISA plans where participants may direct their investments.

Who are plan service providers?

The DOL established three categories of plan service providers. Any provider who provides one or more services to a plan in any category is considered a plan service provider - and required to provide the plan sponsor with disclosures to help the sponsor meet these new disclosure regulations.

Providers that perform "fiduciary" services to the plan, or a Registered Investment Advisor (RIA);
Providers of daily recordkeeping or brokerage services who make a platform of investment options available to a participant directed plan;
Providers of other plan services who receive or may receive indirect compensation or compensation paid from a plan related party to perform: accounting, auditing, actuarial, appraisal, banking, consulting, custodial, insurance, investment advisory, legal, recordkeeping, securities / investment brokerage, third-party administration, or asset valuation services.

What is your role as a plan fiduciary?

ERISA 408(b)(2) - You will be required to obtain and review all services, fees and compensation information for your service providers to determine if the charges are reasonable and appropriate for your plan. You can anticipate each of your plan service providers will provide their 408(b)(2) disclosures to you before 7/1/2012. If not, you should contact your service provider for this information.

ERISA 404(a) - You will be required to obtain and communicate all plan fees to participants, to provide annual disclosure documents that include plan-related information, and to provide investment information on plan investment options, and also quarterly statements showing the actual fees paid by participants. You can anticipate that each of your plan service providers will provide you with their initial 404(a) disclosures for you to distribute to employees covered by your plan before 8/30/2012. If not, you should contact your service provider for this information.

What are the penalties for non-compliance?

ERISA 408(b)(2) - If a plan fiduciary fails to satisfy this regulation the result is an ERISA prohibited-transaction with required excise taxes. You should monitor each of your plan service providers to ensure they each timely provide you with their applicable 408(b)(2) disclosures before 7/1/2012.

ERISA 404(a) - There are currently no announced penalties for non-compliance. However, failure to comply with 404(a) disclosure regulations could result in a breach of fiduciary duty, which may expose the plan sponsor to civil penalty and/or participant lawsuits.

How will BPC help your plan comply?

For BPC clients and plans where 408(b)(2) or 404(a) disclosures are required by BPC ...

ERISA 408(b)(2) - BPC will send all plan sponsors affected by these regulations an updated service agreement, along with our specific 408(b)(2) disclosures prior to July 1, 2012. BPC is using a prominent nationally recognized ERISA firm to update our service agreement and to confirm BPC's 408(b)(2) disclosure format.

ERISA 404(a) - BPC will send all plan sponsors affected by these regulations a BPC 404(a) disclosure prior to August 30, 2012. For clients using a daily recordkeeping platform, some recordkeepers may allow BPC to consolidate our 404(a) disclosures with their 404(a) disclosures - but this is a fluid and a generally unconfirmed option.

Conclusion. For clients and plans covered by these new regulations BPC's disclosures under these new regulations will be timely and complete. If these regulations apply to your plan you should also start watching for incoming 408(b)(2) disclosures from your other service providers, and then later, their 404(a) disclosures - most notably from your daily investment platform recordkeeper (if that is your plan recordkeeping format ) and from your plan investment advisor.

The industry is encouraging the DOL to better address the logistics of 404(a) disclosures, including more practical ways for the electronic delivery of 404(a) disclosures, including consolidated electronic disclosures from all providers. Initially it is possible employees receiving multiple 404(a) disclosures will have questions and need assistance. BPC is prepared to assist you in disclosures inquiries for BPC services. Your other service providers will also be available to respond to you on behalf of their services.

IRS Releases Notice 2012-40 Providing Guidance Concerning the $2,500 FSA Contribution Limit

Thu, 31 May 2012 03:17:07 CST

The IRS has released Notice 2012-40 which provides guidance on the effective date of the $2,500 contribution limit to health flexible spending arrangements (FSAs) under IRS Code Section 125(i). The notice states that “taxable year” refers to the plan’s “plan year;” therefore, the rule will not affect any plans beginning prior to January 1, 2013, and fiscal plan years will not be impacted until the first plan year beginning on or after January 1, 2013.

This is good news for non-calendar year plans. The guidance indicates plans will have until the end of the calendar year 2014 to amend their plans. The notice also provides relief for contributions that mistakenly exceed the $2,500 limit provided they are corrected in a timely manner.

Specifically, Notice 2012-40 provides the following:

the $2,500 limit does not apply for plan years that begin before 2013;
in the case of a short plan year, the $2,500 limit must be prorated based on the number of months in the short plan year;
the $2,500 limit is applied on an employee by employee basis and is applied separately for each unrelated employer that an individual may be working for during the year;
the term “taxable year” in § 125(i) refers to the plan year of the cafeteria plan as this is the period for which salary reduction elections are made;
plans may adopt the required amendments to reflect the $2,500 limit at any time through the end of calendar year 2014;
in the case of a plan providing a grace period (which may be up to two months and 15 days), unused salary reduction contributions to the health FSA for plan years beginning in 2012 or later that are carried over into the grace period for that plan year will not count against the $2,500 limit for the subsequent plan year;
relief is provided for certain salary reduction contributions exceeding the $2,500 limit that are due to a reasonable mistake and not willful neglect and that are corrected by the employer., and
the statutory $2,500 limit under § 125(i) applies only to salary reduction contributions under a health FSA, and does not apply to certain employer non-elective contributions (sometimes called flex credits).

In another very favorable development, the IRS is also calling for comments on modifying (and perhaps eliminating) the use-or-lose-it rule.

New HSA limits for 2013 Announced

Thu, 3 May 2012 03:59:37 CST

The Internal Revenue Service (IRS) recently issued the 2013 limits for health savings account (HSA) contributions, deductibles, and out-of-pocket limits.

• The annual HSA contribution limit for individuals with self-only coverage is $3,250, and $6,450 for individuals with family coverage. (2012 limit is $3,100 and $6,250)

• Qualified "high deductible health plans" must have an annual deductible that is not less than $1,250 for self-only coverage or $2,500 for family coverage, (2012 limit is $1,200 and $2,400) and annual out-of-pocket expenses may not exceed $6,250 for self-only coverage or $12,500 for family coverage.(2012 limit is $6050 and $12,100)

IRS Announces Retirement Plan Limitations for 2012

Thu, 19 Jan 2012 11:12:35 CST

The Internal Revenue Service recently announced the annual Cost-of-Living Adjustments (COLA) for retirement plans and related limitations for the 2012 tax year.

Mileage Rates Released

Thu, 15 Dec 2011 08:34:44 CST

The IRS issued the 2012 standard mileage rate used to calculate the deductible costs of operating an automobile for medical purposes. Beginning on January 1, 2012, the standard mileage rates for the use of a car (also vans, pickups, or panel trucks) will be 23 cents per mile driven for medical purposes. The new medical rate has been reduced by 0.5 cents per mile from the 2011 rate.

New Limits for Transportation and Adoption

Wed, 26 Oct 2011 02:50:21 CST

The IRS has released the 2012 cost-of-living adjustments (COLAs) for limits relating to qualified transportation fringe benefits and adoption assistance.

Qualified Transportation Fringe Benefits. For 2012, the monthly limit on the amount that may be excluded from an employee’s income for qualified parking benefits will be $240, which is a $10 increase from the 2011 limit. But the temporary increase in the combined limit for transit passes and vanpooling expenses that was in effect for 2011 (which made the combined limit the same as the parking limit) has expired. Unless Congress acts to reinstate the increase, the combined monthly limit for transit passes and vanpooling expenses will be $125 in 2012.

Adoption Assistance Exclusion and Adoption Credit. First EGTRRA and then health care reform enhanced the maximum adoption tax credit and income exclusion for employer-provided adoption assistance. Despite temporary extensions under the 2010 Tax Relief Act the tax credit will again be nonrefundable in 2012 and the limits will be reduced. The maximum amount that may be excluded from an employee’s gross income under an employer-provided adoption assistance program (under Code § 137) for the adoption of a child will be $12,650 for 2012 (a $710 reduction from the enhanced 2011 limit). In addition, the maximum adoption credit allowed to an individual (back again under Code § 23, after having been temporarily redesignated as Code § 36C) for the adoption of a child will be $12,650 for 2012 (also a $710 reduction from 2011). Both the exclusion and the credit will begin to be phased out for individuals with modified adjusted gross incomes greater than $189,710 and will be entirely phased out for individuals with modified adjusted gross incomes of $229,710 or more (both income levels are $4,500 higher than for 2011).

Account Management Interface Maintenance Planned

Mon, 24 Oct 2011 04:41:01 CST

We will be taking the account management interface offline from Monday October 24 from 7:00 p.m. and 12:00 a.m. central time.

Additional maintenance will be taking place Thursday, October 27th between 7:00 a.m. and 12:00 a.m. central time.

While balance information will be unavailable, you will still be able to access online claims and documentation upload systems during the outages.

We apologize for any inconvenience in accessing your account information online. If you have questions please do not hesitate to contact us at (800) 355-2350.

Mileage Rate for Transportation to Obtain Medical Care Will Increase in July

Fri, 1 Jul 2011 05:58:16 CST

The IRS has announced a midyear increase in the standard mileage rate for use of an automobile to obtain medical care (which may be deductible under Code § 213 if it is primarily for, and essential to, medical care). For travel on or after July 1, 2011, the new rate will be 23.5 cents per mile (a 4.5 cent increase from the 19 cents per mile rate that applied during the first six months of 2011).

IRS Announces That Breast Pumps Will Qualify as Medical Care Expenses

Fri, 4 Mar 2011 11:10:56 CST

The IRS has ruled the cost of breast pumps and supplies that assist lactation will be tax-deductible and qualify as medical care expenses under Code Section 213(d) because they are for the purpose of affecting a structure or function of the lactating woman's body. The ruling means that women will be able to use money set aside in pretax spending accounts (health FSA or HRA, or for a tax-free distribution from an HSA) to buy the pumps and related equipment. For women without flexible spending accounts, the cost of pumps will only be tax deductible if their total medical costs exceed 7.5 percent of adjusted gross income.

In the past, plans treated breast pumps as dual-purpose expenses that could only be reimbursed if the participant provided a note from a medical practitioner recommending the breast pump to treat a specific medical condition (e.g. a breast abscess). The new guidance allows these items to be reimbursed, regardless of the existence of a medical condition.

FSA participants may submit claims for breast pumps and supplies for reimbursement from their FSA for the current plan year or during the run-out period for the prior plan year if they have a remaining balance.

IRS Announcement 2011-14 (Feb. 10, 2011) is available at http://www.irs.gov/pub/irs-drop/a-11-14.pdf

Additional Upgrades to www.bpcinc.com Improve Website Speed

Wed, 2 Mar 2011 02:43:52 CST

In order to improve the reliability and speed of our websites, BPC will be installing additional system upgrades this coming weekend starting at 5:00 PM CST on Friday, March 4th. While there may be intermittent downtime to our websites, we expect everything to be completed and your access speed to be improved before business resumes Monday morning. If you have any questions or need additional information, please contact BPC at (217) 355-2300 or (800) 355-2350 or visit us at bpcinc.com

Congratulations to Ann Campbell of Indiana University Health North Hospital!

Tue, 15 Feb 2011 01:52:55 CST

Ann's name was randomly selected as the winner of the iPad giveaway sweepstakes from BPC.

Agencies Delay Applicability and Enforcement Of Fully Insured Nondiscrimination Requirement

Tue, 18 Jan 2011 03:19:51 CST

The IRS has delayed the application and enforcement of the additional nondiscrimination requirements for non-grandfathered FULLY INSURED plans that are required under the Affordable Care Act. This notice only impacts fully insured plans. Self-insured plans continue to be subject to the Code's nondiscrimination requirements and penalties.

IRS Notice 2011-1, available at www.irs.gov/pub/irs-drop/n-11-01.pdf states that ". . . compliance with §2716 should not be required (and thus, any sanctions for failure to comply do not apply) until after regulations or other administrative guidance of general applicability has been issued under §2716." This means:

No excise tax under the Code §4980D ($100 per day per person discriminated against);
No Form 8928 self-reporting of excise tax due to nondiscrimination failure;
No civil penalties; and
No civil action to enjoin noncompliant conduct or seek other equitable relief.

According to Notice 2011-1, compliance with the new nondiscrimination requirements will be prospective after regulations or other guidance is issued.

The agencies received many comments and questions regarding application and implementation of these new rules. The agencies are now requesting additional comments on the problems associated with implementing the statutory mandate. The comment period is open until March 11, 2011. We are grateful the agencies are showing genuine concern for employers difficulties implementing these changes so quickly with no guidance. If you have any questions, please contact BPC at 217-355-2300 or 800-355-2350.

Sign Up for Direct Deposit and Win an iPad!

Tue, 18 Jan 2011 03:16:51 CST

With direct deposit, you can get reimbursed faster . . . BPC flex reimbursements will be deposited directly in your checking or savings account saving you time and getting your money back to you safely and quickly. Direct deposit with BPC is convenient, fast, reliable, and safe. For complete details and to sign up today go to: www.bpcinc.com/directdeposit or use the attached form above.

IRS Announces 2011 Dollar Limitations

Tue, 18 Jan 2011 03:13:43 CST

The Internal Revenue Service has announced Pension Plan Limitations for retirement plans for the tax year 2011. The Social Security Administration also announced the Taxable Wage Base for 2011. These amounts, which are in general the same as 2009 and 2010, are outlined in the above attachment.

Updated IRS Guidance: OTC Changes Effective January 1, 2011

Tue, 18 Jan 2011 03:13:01 CST

On Friday, September 3, 2010, the IRS issued Notice 2010-59 and Revenue Ruling 2010-23 which provided initial guidance with respect to the new rule included in the Affordable Care Act that requires a doctor's prescription for the reimbursement of over-the-counter (OTC) drugs and medicines from Health FSA accounts and other tax-advantaged health care accounts.

In summary, the guidance confirms the following:

Participants will still be able to use their tax advantaged health care accounts for purchases of ALL OTC drugs and medicines, as long as they have a doctor's prescription.
The rule applies to all tax-advantaged health care accounts, including Flexible Spending Accounts (FSAs), Health Savings Accounts (HSAs), Health Reimbursement Arrangements (HRAs) and Archer Medical Savings Accounts (Archer MSAs).
The rule takes effect January 1, 2011 and applies to purchases on or after January 1, 2011, regardless of plan year. This includes 2010 plan year grace period expenses for OTC drugs/medicines purchased on or after January 1, 2011. The only acceptable form of documentation for reimbursement for OTC drugs and medicines is a doctor's prescription, as regulated by state law.
Insulin, medical devices (crutches, blood sugar monitors, etc.) and items such as bandages, contact lens solution, denture bond, etc. remain eligible and will not require a prescription. See attached list for additional examples.

BPC Flex Benefit Cards will be affected when using it for OTC medicine/drug purchases on or after January 1, 2011. Most retailers will update their Inventory Information Approval Systems (IIAS) with the new eligible products list as soon as possible on or after January 1 to reflect movement of OTC drugs or medicines from the "Eligible" to "Dual Purpose" category. The new guidance allows for a 15-day enforcement delay until January 16, 2011 for card transactions. This is to allow merchants time to implement the new eligible product list. Eligible items will continue to be approved at the point-of-sale. Dual Purpose items, however, such as aspirin and cough medicine, will require a doctor's prescription. Dual Purpose items will no longer be eligible for BPC Flex Benefit Card purchase at the point of sale so you will need another form of payment. You can submit a claim with a detailed receipt and a doctor's prescription for the OTC drug/medicine purchased to BPC for reimbursement.

You can find additional information on the BPC website at www.bpcinc.com or the IRS has posted additional details, including a helpful FAQ, about the OTC rule change on its Affordable Care Act website and includes links to the following:

BPC will be sending the necessary amendments regarding this OTC change for your plan documents before the end of the year. Standard amendment fees will apply.

If you have any questions or need additional information, please contact BPC at 217-355-2300 or 800-355-2350.

IRS Issues Guidance on OTC Changes for 1/1/2011

Tue, 18 Jan 2011 03:12:18 CST

On September 3rd, 2010, the Internal Revenue Service issued guidance IR-2010-95 reflecting statutory changes regarding the use of certain tax-favored arrangements, such as flexible spending arrangement (FSAs), to pay for over-the-counter medicines and drugs.

See the linked document above for the full release which includes FAQ.

EFAST2 Is Coming

Tue, 18 Jan 2011 03:07:23 CST

What is E-FAST2?

Beginning in 2010, the DOL will require that all Form 5500s be filed electronically through EFAST2. EFAST2 is short for electronic filing acceptance system part 2. It is an online system for submitting Form 5500s to the Department of Labor (DOL).

What changes will this bring for plan sponsors?

BPC will continue to prepare your Form 5500 as usual. However, you will notice the following changes in the forms and in our procedures:

Paper filings will no longer be accepted, except for the Form 5500-EZ used by one participant filers
Many small plans exempt from the audit requirement will now have the option of filing on the Form 5500-SF, which is a shorter form with no schedules
Plan sponsors will need internet access and a valid e-mail address
Individuals responsible for signing the Form 5500 will need to obtain “filing signer” credentials through the DOL website
You will be invited via e-mail to a “signing ceremony” where you will login to our website with your pre-approved credentials in order to electronically sign the forms.
We expect heavy use of the system at filing deadlines. Due to uncertainty of the system’s ability to process the anticipated level of high usage around deadlines, we strongly encourage all forms be filed a minimum of 2-3 weeks prior to your filing deadline
Plans subject to the audit requirements will need to have their audits performed earlier in order to ensure the forms and audit are filed timely
Plan sponsors will be required to retain a paper copy of the forms with a wet signature for their records as they always have in addition to the electronic processing. The paper forms will no longer have a bar code at the bottom.
ERISA 403(b) plans will also be subject to all of the above filing requirements

When will this change happen?

The EFAST2 system is expected to go live on January 1, 2010. All 2009 calendar year plans will be required to file using EFAST2. Any non-calendar year plans that have not filed by December 31, 2009, will need to file using EFAST2.

BPC wants to ensure these changes are as easy as possible for our clients. Over the course of the next few months, we will continue to communicate with you regarding the new filing requirements. We understand for some clients the new technological requirements may seem like a great burden. However, we will strive to make the process as easy as possible and will be available to walk you through the process.

Please watch for future communications from BPC regarding EFAST2.

BPC's CEO Fights for Flex Plans

Tue, 18 Jan 2011 03:06:19 CST

(Reprinted with permission from the News Gazette Saturday, August 1, 2009) [Permalink]

Benefit Planning Consultants, Inc. President and CEO Habeeb Habeeb is profiled regarding his passion for saving Flexible Spending Plans.

See the attached article for more!

Open Letter to President Obama from ECFC: Don't eliminate or curtail Flex Plans

Tue, 18 Jan 2011 03:05:05 CST

The Employers Council on Flexible Compensation (www.ecfc.org) (ECFC) urges the President, in an open letter, to not eliminate or reduce the tax benefits of flexible spending plans. See the attached document for a copy of the letter sent to President Obama yesterday.

Guest Commentary: BPC's CEO urges everyone to act now to save Flex Plans

Tue, 18 Jan 2011 03:03:30 CST

(Reprinted with permission from the News Gazette Sunday, August 2, 2009) [Permalink]

Act now to save your health care flex plans

By HABEEB HABEEB

In its rush to enact health care reform legislation, Congress may abolish or curtail flex plans, also known as FSAs. Your action is needed to tell them you want to keep your flex plan.

It is not that they dislike FSAs, but legislators need to raise revenue to pay for reform. We feel that capping or abolishing FSAs is a punch-in-the-pocket and a slap-in-the-face to the average working American who sets aside money to pay for medical expenses on a pre-tax basis. That saves the average taxpayer 25 percent in payroll taxes on every medical expense.

Should FSAs be eliminated or curtailed, it would mean a tax increase on average Americans already struggling to pay for health care. While health care reform is inevitable, FSAs must be preserved as a critical tool to save and pay for out-of- pocket medical expenses.

Why preserve FSAs? First, they are not a tool for the rich. The average salary of an FSA participant is $55,000.

FSAs help control health care costs by allowing participants to pay for co-pays, co-insurance, prescriptions and deductible expenses. In addition, many families use it to defray the high cost of dental treatments such as root canals and orthodontia and necessary vision expenses such as Lasik surgery, eyeglasses, and contact lenses. The most important use is to pay for chronic conditions such as high blood pressure and diabetes. Participants may forgo treatment if FSAs are unavailable, causing health costs to rise.

FSAs are not misused. Every expense must be verified to be eligible by an independent third party as a necessary medical expense under IRS code.

Most participants run out of money before the end of the year. Data over millions of claims show that there is no rush to spend at year-end as most people had exhausted their balances in the first three quarters. If anything, they wish they had set aside more funds at the beginning of the year.

Even though FSA funds are subject to the use-it-or-lose-it rule, very few participants lose any money and even then, the amounts are small. It would be better if the IRS abolishes the use-it-or-lose-it rule, encouraging more people to set aside money in their FSA account.

Eliminating FSAs would immediately raise the cost of medical expenses by 25 percent for most Americans.

The tax impact of paying for medical expenses with after-tax dollars will be devastating to at least 35 million Americans who rely on FSAs to help them save on three payroll taxes: Federal Income tax, State Income Tax, and FICA (Social Security and Medicare Tax). Federal income tax starts at 10 percent with many households paying 15 percent or more. State income tax is 3 percent, and FICA is 7.65 percent. Therefore most Americans would pay at least 25 percent more for their medical expenses (15 + 3 +7.65 = 25.65 percent) if FSAs are eliminated.

Americans are already struggling in a down economy. They don't need a tax increase on medical expenses.

Congressman Johnson has stated his opposition to capping or eliminating FSAs. Citizens are urged to contact U.S. Sens. Dick Durbin and Roland Burris and President Obama asking them to Preserve FSAs. Urge them not to eliminate nor curtail flex plans.

Habeeb Habeeb is President & CEO of Benefit Planning Consultants, Inc. in Champaign and a certified flexible compensation instructor. He is a member of the board of directors of the Employer's Council on Flexible Compensation, a national organization headquartered in Washington D.C whose goal is to preserve the tax exclusion for various employee benefits.

IRS Issues Interim Relief Regarding W-2 Reporting

Wed, 13 Oct 2010 12:00:00 CST

The IRS issued Notice 2010-69 which provides interim relief to employers from the mandatory reporting of the cost of employer-sponsored group health plan coverage on employees' Form W-2s beginning with the 2011 tax year. Further guidance is expected before the end of 2010 regarding the use of COBRA rules to determine the value of coverage and other issues that need clarification before reporting becomes mandatory.

The new draft W-2 tax form was also released Oct. 12, 2010. The draft includes a new code (DD) that employers may use to report the cost of coverage under employer-sponsored group health plans in Box 12. The amount reported with Code DD are nontaxable.

Additional information can be found on the following websites:

If you have any questions or need additional information, please contact BPC at 217-355-2300 or 800-355-2350.

OTC Changes Effective January 1, 2011

Sat, 8 May 2010 12:00:00 CST

As of January 1, 2011, Health FSAs and HRAs will not be able to reimburse over-the-counter (OTC) medicines or drugs (other than insulin) without a doctor's prescription; similar restrictions will apply to HSAs. Over-the-counter medicine expenses will only be reimbursable if participants have a prescription. Other OTC items such as medical supplies, that are not medicines or drugs, such as contact lens solution and bandages, will still be covered. This change aligns what is currently allowable as an IRS qualified medical expense deduction if you itemize your medical expenses with what will be allowed under an FSA/HSA/HRA plan.

This change is effective January 1, 2011 regardless of when the plan year starts or grace period that may be in effect for 2010 plan years. The change in OTC eligibility is not a change in status that will allow any mid-year changes to participant's elections.

BPC Benefits Card (flex debit card) users will not be able to use their cards to purchase OTC items on or after January 1, 2011. Because OTC medicines are no longer eligible for reimbursement without a prescription, they will not be listed in the IIAS eligible item list and therefore cannot be purchased with the card at IIAS merchants. Starting Jan 1, 2011, the participant will need to get a prescription from their medical provider, submit the prescription with the detailed receipt purchased and a signed claim form to BPC to be reimbursed for OTC medicine or drugs.

This change in eligibility for OTC drugs & medicines will require an amendment to all FSA plans, and any HRA plan that allowed OTC expenses. BPC will produce and send the required amendment(s) to you before the end of 2010.

BPC Implementing Secure Email Solution

Fri, 23 Apr 2010 12:00:00 CST

In order to maintain the confidentiality of private information and ensure compliance with privacy regulations such as HIPAA, HITECH, and Red Flag Rules, we are implementing a new email encryption service through Zix Corporation. The service will enable our organization to protect personal information, such as social security, driver's license, credit card, medical record numbers, and account numbers, from undesirable external parties on the internet.

Beginning Monday, April 26, 2010, electronic communications which contain confidential data sent between BPC and you will be encrypted. You will be able to receive and reply to our encrypted email communications easily, and with the knowledge that others will not be able to access that information.

If you do not currently have a ZixCorp email encryption password then you will be asked to click on a link in the email, which will connect you to our secure message center. There you will register a private password to retrieve and reply to our secure messages. This is a free BPC portal at no cost to you.

To learn more about our email encryption system, please go to: http://userawareness.zixcorp.com/sites/index.php?b=d31cd4752d24961493abf95c85b9c396&type=1&p=2. BPC is committed to protecting your personal and private information, and we're pleased to provide an easy-to-use solution that secures our shared email communications.

Legislative Alert: COBRA Premium Subsidy Extended for Two Months

Fri, 16 Apr 2010 12:00:00 CST

On Thursday afternoon April 15, 2010, the Senate approved H.R. 4851, the Continuing Extension Act of 2010 by a vote of 59 to 38. The House followed that action by passing the bill in the early evening by a vote of 289 to 112. President Obama signed the bill, which provides for a two-month extension of the COBRA premium subsidy (through May 31, 2010). Originally, H.R. 4851 called for a one-month extension (through April 30, 2010) of the COBRA premium subsidy. However, during the debate, the Senate adopted an amendment offered by Finance Chairman Max Baucus, which further extended a number of provisions in the bill, including the COBRA premium subsidy.

It is very likely that Congress will continue this approach – a series of short-term fixes, rather than a longer extension – for the remainder of the year.

COBRA Subsidy Extension Clears Procedural Hurdle in Senate

Tue, 13 Apr 2010 12:00:00 CST

Late yesterday afternoon, the Senate, by a vote of 60 to 34, invoked cloture on the motion to proceed to H.R. 4851, the Continuing Extension Act of 2010. Among other items, H.R. 4851 provides a one-month extension of the COBRA premium subsidy through April 30, 2010. The extension would be retroactive until April 1. The Senate expects to take up the measure on Tuesday with a vote on final passage expected on Thursday. Four Republicans -- Senators Scott Brown (MA), Susan Collins (ME), Olympia Snowe (ME), and George Voinovich (OH) -- voted in favor of cloture on the motion to proceed. We will provide additional information as it becomes available.

Legislative Update

Wed, 31 Mar 2010 12:00:00 CST

Historic Health Care Reform legislation has been enacted. BPC and our industry group worked tirelessly this past year to advocate for Flex plans. While some restrictions on FSAs remain part of the Health Care Reform package, the outcome for FSAs is far better than the changes initially proposed. Both H.R. 3590, the Patient Protection and Affordable Care Act (PPACA) and H.R. 4872, the Health Care and Education Reconciliation Act of 2010 (the Reconciliation Act) have become law.

Below is a brief summary of the parts of these new laws, as we currently understand them, that effect Cafeteria plans, Health FSAs, HRAs and HSAs.

FSA CAP. Health FSA salary reductions are limited to $2,500 each year. The cap is effective for tax years starting on or after January 1, 2013. It is indexed for inflation beginning in 2014.
OVER-THE-COUNTER REIMBURSEMENTS. Over-the-counter medicines or drugs are not eligible for reimbursement under an FSA, HRA or HSA unless prescribed by a doctor. This is effective for tax years beginning on or after January 1, 2011.
HSA DISTRIBUTIONS. The excise tax for nonqualified distributions from HSAs is increased from 10% to 20% for individuals under age 65, effective for distributions on or after January 1, 2011.
SIMPLE CAFETERIA PLANS. A new safe harbor from the nondiscrimination requirements for cafeteria plans of small employers is provided in PPACA. A Simple Cafeteria Plan requires an eligible employer to meet certain contribution, eligibility, and participation requirements. An eligible employer is an employer with 100 or fewer employees during either of the two preceding years. The Safe harbor applies to tax years beginning on or after January 1, 2011.
DEPENDENT COVERAGE FOR ADULT CHILDREN. Group health plans (insured and self- funded) offering dependent coverage for children must continue providing that coverage for adult children (married or unmarried) until age 26. The coverage for such children will be nontaxable. This is effective for plan years beginning 6 months or more after the date of enactment (Sept. 23, 2010). Coverage would not have to be offered by grandfathered group health plans to an adult child eligible for coverage under another employer- sponsored health plan until 2014.

Electronic Statements

Thu, 18 Feb 2010 12:00:00 CST

Beginning March 15, 2010 BPC will be rolling out a new electronic statement system. We are excited to bring this feature to your benefit accounts. We will be automatically creating electronic versions of some of the documentation you previously received at your home address.

Electronic-only documents include:

Explanations of Benefits for Direct Deposit Notifications
Quarterly Account Summary Statements

You will automatically be notified by email whenever a new statement is made available on our website.

As a bonus, this initiative will have the added benefit of making these documents available to you for download for a period of 3 years after they are first issued.

We would encourage you to visit bpcinc.com/paperless for additional details about this initiative.

Contact Senators on Health Care Reform Today!

Wed, 9 Dec 2009 12:00:00 CST

As you know, the Senate is currently debating the Patient Protection and Affordable Care Act. We urge you to contact Senate offices as soon as possible by calling (202) 224-3121, and urge your senators to adopt the Schumer amendment. See below for details:

It is our understanding that Senator Schumer (D-NY) later today plans to file an amendment to apply an inflation index of CPI plus 1 percentage point to the $2,500 cap imposed on flexible spending accounts (FSAs).

We strongly encourage clients to reach out to their Senators and urge them to join in cosponsoring Senator Schumer’s amendment. Senate offices interested in cosponsoring the amendment should contact Jeff Hamond with Senator Schumer’s office.

As we have previously reported, efforts are very much underway to get an FSA inflation index incorporated into the “manager’s amendment.” Senator Ben Nelson (D-NE) has voiced his support for such an action to the Democratic leadership. Getting strong co-sponsorship of the Schumer amendment will help further demonstrate support for the FSA index.

Points to Make

More than 35 million Americans rely on their FSAs to meet their health care needs.
The average annual income for an FSA participant is $55,000.
FSAs are particularly important for patients with chronic illnesses, who even with comprehensive coverage, can face thousands of dollars in total out of pocket costs.
Most insurance plans do not cover the full cost of care for conditions such as autism, or services, such as wheelchair repairs.
The legislation will have a devastating effect on Americans who rely on their FSAs.
First, the cap is much lower than what most states and the federal government allow their employees to set aside. Federal employees currently can set aside $5,000. State employees in more than half of all states can set aside $5,000 or more.
Second, since the cap is not indexed to inflation, the bill effectively eliminates FSAs over time.
That outcome is totally counter to the pledge made by many policy makers and President Obama – that is, if you like what you have you can keep it. And it will have a negative impact on Americans with chronic illnesses and those with middle-class incomes.
I strongly encourage the Senator in joining in co-sponsoring the Schumer amendment.

Decrease of 7.5 Cents in 2010 Mileage Rate for Transportation to Obtain Medical Care or as Part of Deductible Moving Expenses

Fri, 4 Dec 2009 12:00:00 CST

[Rev. Proc. 2009-54 (Dec. 3, 2009)]

For a copy: http://www.irs.gov/pub/irs-drop/rp-09-54.pdf

For a copy of the press release:

http://www.irs.gov/newsroom/article/0,,id=216048,00.html

The IRS has announced that the standard mileage rate for use of an automobile to obtain medical care (which may be deductible under Code Section 213 if it is primarily for, and essential to, medical care) will be 16.5 cents per mile for 2010. This is a 7.5 cent decrease from the 2009 rate of 24 cents. An IRS press release attributes the decrease to a general reduction in transportation costs.

BPC Launches 2 New Calculators to Illustrate Effects of Healthcare Reform

Fri, 2 Oct 2009 08:40:00 CST

BPC is pleased to announce the release of two new calculators to further enhance employee and employer knowledge regarding proposed legislation for healthcare reform. These calculators are designed to illustrate how the elimination or alteration of existing benefit plans may affect taxable income for individuals and companies.

Employee Effects on FSAs:This calculator demonstrates how employees will be hurt by any reform which hinders the use of health flexible spending accounts as a method for paying for medical expenses pre-tax. Employees can choose from one or more common expenses to illustrate the change in out-of-pocket costs that would result from the elimination of FSAs. [Access the Calculator]
Employer Effects on Health Plans: Employers who do not offer a health plan may be subject to certain penalties under proposed legislation. This calculator illustrates the total dollar value of that penalty and compares the penalty to the tax advantages offered by providing a health plan and gives a bottom line to show whether your company would be better off to provide some health option to all employees. [Access the Calculator]

BPC is committed to informing employees and employers about their options for improved healthcare and is active in lobbying the Federal government for improvements to the healthcare system which don’t restrict options or pile undue or unnecessary costs on individuals and businesses.

Retirement Plan Info Available on Employer Webpages

Wed, 26 Aug 2009 11:38:00 CST

BPC is in the process of rolling out information for retirement plan clients on employer specific webpages.

New information includes login portals for your other benefits and retirement providers, contact information where applicable for your brokers, as well as documentation specific to retirement plans.

Additional quick links and tools will added to this webpage in the near term so stay tuned!

New ARRA rules increase the combined transit pass/vanpooling monthly limit to $230 effective March 1, 2009

Sun, 1 Mar 2009 12:00:00 CST

COBRA affected by stimulus package

Tue, 17 Feb 2009 12:00:00 CST

Heartland Payment Systems Security Breach

Tue, 20 Jan 2009 12:00:00 CST

BPC has been made aware of a card security breach involving Heartland Payment Systems during the period of 5/15/2008 through 11/13/2008. No personally identifiable information such as SSNs, PINs, or addresses has been compromised. BPC advises all card participants to continue the practice of reviewing all card transactions on the Benefits Card website. Please notify us by phone or make use of the fraud tools on the Benefits Card website if you notice any erroneous activity so that we may assist you in having your card replaced.

Heartland is a payment processor which is not affiliated with BPC or Metavante (BPC's card vendor). BPC has today received notification of many cards which may have been affected and we will be contacting those individuals. BPC is relaying this information as a service to our cardholders and out of an over abundance of caution. For further information regarding Heartland Payment Systems and this security issue, please visit www.2008breach.com.

Mileage Rate Decrease

Mon, 24 Nov 2008 12:00:00 CST

In announcement 2008-131 the IRS lowered the reimbursement rate for mileage expenses incurred on or after January 1, 2009 to receive medical care. Effective January 1, 2009 the new mileage rate is 24 cents (down from 27 cents in IRS Rev Proc 2008-63).

BPC Benefits Card Usage - IIAS Update

Thu, 30 Oct 2008 12:00:00 CST

Update: IRS Bulletin 08-104 has extended the Pharmacy IIAS deadline to June 30, 2009

As of June 30, 2009 the federally mandated IIAS initiative will go into effect for pharmacies. This system will limit the locations you can use your benefits card to those vendors whose systems comply with IIAS. For more information on IIAS and how it will affect you click here. Walgreens will continue to work as it does now.