All Pinnacle offices will be closed this Friday, July 4, in observance of Independence Day. See all federal bank holidays at PNFP.com/Holidays.
All Pinnacle offices will be closed this Friday, July 4, in observance of Independence Day. See all federal bank holidays at PNFP.com/Holidays.
Thanks to the CARES Act and other regulatory updates, employers that offer cafeteria plans and flexible spending accounts can allow their associates a few temporary relief measures. These options were available to employers starting with plan year 2020, and plan year 2021 is the last chance to take advantage of them.
What are the options, and what’s involved for companies that opt in?
Employers can choose to allow one of the following:
-OR-
Employers can also choose to allow any or all of the following:
In general, employers who implement any of these changes for a 2021 calendar year plan must amend relevant plan documents by the end of 2022. Employers with non-calendar year plans must amend their documents within one year after their plan year ends.
Keep in mind: Adopting these relief measures for your employees will affect plan forfeitures. If your company has historically relied on forfeited funds to offset plan expenses, know that access to these funds would be delayed by a grace period extension and the amounts may be reduced if you allow full-balance rollover.
Education is key: Be prepared to educate your employees on any changes you allow. For example:
Our team is here to answer questions about these options, including the benefits to employees and impact on benefits plan documents. Email us at health@pnfp.com.
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