Date of Issue 7/97

Subject: Flexible Spending Plan

IIT offers a Flexible Spending Plan that allows the employee to pay, on a before-tax basis for health care coverage premiums, certain medical expenses that are not covered under the university’s health care plan, and eligible dependent (child and elder) care expenses. The Flexible Spending Plan is administered in accordance with Section 125 of the Internal Revenue Code. However, Section 125 may not permit participants to include unreimbursed expenses attributable to domestic partners in the Flexible Spending Plan.

The employee must make a written election to participate prior to the first of the month after hire or the start of the plan year. The plan year begins June 1 and ends on May 31.

The employee funds his/her individual flexible spending account through payroll deduction on a pre-tax basis.

Changes may be made during the plan year if the employee has a change in family status for one of the following reasons:

marriage
divorce
death of a dependent
birth or adoption of a child
a change in health care coverage due to spouse's employment

An employee cannot cancel this plan during the plan year.

Participation ends on May 31 or the last day of employment, whichever occurs first.

The following forms are available in the Payroll Office:

Flexible Spending Salary Reduction Agreement Form
Flexible Spending Enrollment Form
Waiver of Participation Form
Flexible Spending Medical Reimbursement Form
Flexible Spending Dependent Care Reimbursement Form

Consult Payroll for further plan information and Summary Plan Description.

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