| Contact the HR/Payroll Service Center if you experience one
of the following special circumstances.
Leaves
During periods when you are not receiving a salary from U-M, you can contribute to a Health Care FSA, but you cannot contribute to a Dependent Care FSA. Such periods include a leave of absence (Leave),
reduction if force (RIF), and a leave under the Family Medical Leave Act
(FMLA).
During these periods you can continue to submit claims for eligible expenses incurred, the procedures vary depending on the type of account.
- Health
Care FSA
- You
may only receive reimbursements for services incurred during periods
when you made contributions to the account.
- If
you wish to receive reimbursements during a Leave or other period
when you are not receiving a salary, you must make aftertax contributions
to your Health Care FSA. Reimbursement will be based on the
total amount you elect for the year and will be paid upon request.
- When
you return from a Leave or RIF
to an appointment eligible for benefits within the same year, your monthly or bi-weekly FSA payroll deduction amounts will increase in order to reach your annual contribution amount if you did not cancel your participation at the start of your leave or request a change upon your return if permissible.
- Dependent
Care FSA
- You
may continue to submit claims for eligible expenses incurred.
- The amount of the reimbursements will be subject to the balance in your account. If there are sufficient funds, claims will be honored upon request.
- When you return from a Leave or RIF to an appointment eligible for benefits within the same year, your monthly or bi-weekly FSA payroll contribution amounts will increase in order to reach your annual contribution amount if you did not cancel your participation at the start of your leave or request a change upon your return if permissible.
COBRA
The Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) allows
you to continue your Health Care FSA with aftertax contributions
even after losing your eligibility to participate (for example, due to termination
of your employment).
To submit
claims for expenses incurred after you become eligible
for COBRA, you must continue your account through COBRA.
A letter
explaining your rights and responsibilities under COBRA will be mailed
to your home within six weeks after you enroll in University benefits as a newly hired or newly eligible faculty or staff member.
Please read the letter carefully and keep it with your records for future
reference, if necessary. If you do not receive the letter, please contact the HR/Payroll Service Center.
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