What are the 2021 mid-year benefit election options being offered under the Consildated Appropriations Act?

As part of the nation’s continued response to the 2019 Novel Coronavirus outbreak (COVID-19), new COVID-19 relief legislation under the Consolidated Appropriations Act is providing additional flexibility to employees in employer-sponsored benefit programs. Under this legislation, the City's LAwell Civilian Employee Benefits Program (LAwell Program) allows mid-year election changes to a Healthcare Flexible Spending Account (HCFSA) or a Dependent Care Reimbursement Account (DCRA) effective March 1, 2021 and continuing for the remainder of 2021.

New or changed elections for a 2021 Healthcare Flexible Spending Account (HCFSA) or Dependent Care Reimbursement Account (DCRA)
• An employee not currently enrolled in a HCFSA or DCRA for 2021 may elect a new 2021 account beginning March 1, 2021. A qualifying life event is not needed for this election, but all new elections are irrevocable. Contributions made into your account may only be reimbursed for qualifying expenses incurred from the date of your election through December 31, 2022 (see extended grace period below).
• Employees currently enrolled in a HCFSA or DCRA for 2021 may increase or decrease their election amounts. A qualifying life event is not needed to make a change. All contributions are irrevocable. Elections cannot be reduced to an amount less than your year-to-date contributions or the minimum annual amount required to participate in the account.
• All changes are prospective and will be effective on the next applicable paycheck and continue through the remainder of the calendar year, subject to eligibility. To make a change effective for a specific paycheck, please make your request by the deadlines shown in the FAQ below.

Extended Grace Periods for an HCFSA or DCRA for Plan Years 2020 and 2021

• Employees enrolled in an HCFSA or DCRA for 2020 will have from January 1, 2020 to December 31, 2021 to incur qualified expenses. Reimbursement claims must be made by April 30, 2022. This change occurs automatically for all 2020 enrolled employees. No election is required.
• Employees enrolled in an HCFSA or DCRA for 2021 will have from January 1, 2021 to December 31, 2022 to incur qualified expenses. Reimbursement claims must be made by April 30, 2023. This change occurs automatically for all 2021 enrolled employees. No election is required.

DCRA Age Limit Temporarily Increased to 14

• If you had a qualifying dependent who turned (or will turn) 13 during the 2020 or 2021 plan years, you may be able to use any unused funds from those plan years for qualifying expenses for that child until they turn 14. To qualify for this relief, enrollment in the DCRA prior to January 31, 2020 is required. This change occurs automatically for all 2020 and 2021 enrolled employees.

What are the 2021 mid-year benefit election options being offered under the American Rescue Plan Act?

The American Rescue Plan Act (ARPA) of 2021 provides for an increase of the maximum contribution amount to a Dependent Care Reimbursement Account (DCRA). For tax year 2021, the maximum contribution amount to a DCRA has increased to $10,500 (or $5,250 for married taxpayers filing separately).

How do I make a mid-year benefit election change??

To enroll or make an increased change to an HCFSA or DCRA account permitted under this new federal guidance, please call the LAwell Program Benefits Services Center at:

The LAwell Program Benefits Services Center
833-4LA-WELL, (833-452-9355)
Open Monday through Friday, 8:00am to 5:00pm.

To request a decrease to your current HCFSA or DCRA election permitted under this new federal guidance, email per.empbenefits@lacity.org or call 213-978-1591.

What are the deadlines to make HCFSA or DCRA changes effective for a specific paycheck?