Plan Documents

mrsbowden

Yet another question about plan documents...Our org. is trying to roll out the new IRS ruling to include over-the-counter non-prescription drugs under FSA's. We have one manager that believes since the ruling has already taken effect we should just send a note out to ee's letting them know its available and then worry about the plan document. The other manager feels that we should FIRST update the plan documents (Which if you read one of the previous posts of mine has not be updated SINCE 1993, I about died when I found out) then send out a notice about the new ruling and a copy of the amended plan document.

Thoughts?? Anyone know the legallity of this? or even suggestions at this point.

Thanks again for helping the newbies x:)

irenesmsaclaims

MrsBowden, the ruling is permissive. Plans do not have to add OTC drugs to their FSA plans, but they CAN. You should amend the FSA plan document prior to allowing the new benefit, if you're going to. A 10 year old plan document should definitely be re-written to include all amendments, compliance issues, etc. There have been many!!

mrsbowden

Thank you for the info. I am having trouble convincing some of my co-workers that we are not REQUIRED to include OTC drugs. Although we are leaning toward including it some managers don't feel we should and want to see legal writing that we are NOT required too! Do you know where I can find this in writing?

irenesmsaclaims

It's Revenue Ruling 2003-102. You can find the text at [url]www.ustreas.gov/press/releases/js695.htm[/url], or another website with resources like this.