UpDate - Vol. 11, No. 29, Page U.D. BENEFITS-2
April 30, 1992
UD Benefits 1992-93
Q&A

     Q. When can I make changes?
     A. You can make changes only during the re-enrollment period for
a July 1 effective date. However, if your family status changes (known
as a "life event," i.e., birth, adoption, marriage, divorce, death,
job change, etc.), you can modify your benefits within 30 days of the
event.

     Q. When my spouse's medical coverage changes, why can't I change
my UD plan at the same time?
     A. According to the IRS regulations on cafeteria-style plans,
this type of change is not considered a "life event" and can only be
made at the beginning of a new plan year.

     Q. Why is the Benefits staff so "picky" about the kind of changes
I can make during the year?
     A. The Benefits Office is responsible for ensuring that the
University's programs are administered in compliance with federal law.
There are severe penalties for noncompliance, including the
elimination of favorable tax status for all flex contributions.

     Q. I am moving soon and will not need my day care. How soon can I
make a change in my deduction amount?
     A. You cannot immediately change your FSA contributions because
of relocating. The earliest you can do so is at the next enrollment
period for coverage effective July 1 of the following plan year.

     Q. I am divorced and do not have primary custody of my child, nor
do I live with my child. However, I do pay day-care expenses for my
child. Am I eligible to participate in the FSA dependent care program
and receive reimbursement for my expenses?
     A. No, you would not be eligible. IRS Publication 503 indicates
that to be able to claim credit for child and dependent care expenses,
you must maintain a home that you live in with your dependent.