ADP, LLC is the new administrator for the TexFlex program. The contract will cover a four-year term that begins September 1, 2015.
The ERS Board of Trustees awarded the third-party administrator contract for the TexFlex program to ADP, LLC (ADP). The contract will cover a four-year term from September 1, 2015, through August 31, 2019.
When and how to contact
ADP will provide more information about its administration of the TexFlex program this summer. ADP will work with ERS to:
- attend Summer Enrollment fairs from June 22 through July 31,
- create a new TexFlex website, which will be available beginning June 22, 2015 and
- provide a customer call center in June.
ERS will also provide updates on the administrator transition, the website and ADP’s call center during Summer Enrollment.
Qualified Transportation and Fringe Benefit plan coming to TexFlex
The ERS Board of Trustees approved a Qualified Transportation Fringe Benefits (QTFB) plan, also referred to as a “Transit and Parking plan.” ERS tentatively plans to launch the program in calendar year 2016. We will provide additional information as it is available.
What is TexFlex?
TexFlex is a tax-saving flexible spending account (FSA) program that lets participants contribute pre-tax money for eligible out-of-pocket expenses. Rules for FSAs are set by the U.S. Internal Revenue Service. TexFlex offers two types of accounts:
Health care accounts allow participants to pay for eligible medical, dental, vision, hearing and prescription drug expenses not covered by insurance. Currently, there is a $2,500 maximum annual contribution, but the IRS is increasing this to $2,550 for Plan Year 2016 (September 1, 2015 – August 31, 2016).
Dependent care accounts let participants pay for day care expenses, including childcare and adult care programs. The maximum annual contribution is $5,000 per plan year.
Participation is voluntary. In Plan Year 2014, there were 50,023 TexFlex accounts with $80.3 million pledged, resulting in tax savings of about $115.3 million for plan participants.