You will receive a Plan Document. This document dictates your plan design and how your plan must operate, either because of federal regulations or because of plan design choices made by the plan administrator (employer). You should refer to this document for all questions regarding your plan, or contact SABC. It is important that this document is up to date. Should you make any changes that affect your plan, such as changes, additions or deletion of insurance products, please notify SABC, so that your document can be updated.
Summary Plan Description (SPD)
You will receive an SPD, which outlines your plan design. After the enrollment, a copy of the SPD should be sent to all employees. If you choose to put the SPD on your company website, you must notify each employee as to its location. In addition, you must offer a printed copy to any employee that request a copy or does not have access to the company website.
Unreimbursed Medical Spending Account Funding (URM)
Federal Regulations require that annual elections for URM participants be available to them at any time during the plan year. Therefore, as described to you during the plan set-up, the employer is required to front supplemental funds at the beginning of the plan year to ensure that URM claims can be paid, regardless of the participants’ current balance. Your SABC representative will recommend a pre-funding amount based upon your participation.
SABC FlexCard (by Wex)
In addition to the funding described above, if you offer the FlexCard, additional funding in a separate bank account is required. To ensure that funds are always available when a participant uses the card, the bank requires that 7% of the annual elections for those with the card, be on deposit at all times. After the initial enrollment, you will be contacted by SABC with amount required to fund the 7%. Because 7% must on deposit at all times, each Monday morning we are required to replenish the account for any purchases that were made by cardholders. Funds will be utilized from the supplemental funds sent to SABC to fund manual claims.
Termination of Employment
Remember if a URM participant terminates, your plan may require that you deduct their remaining plan year election from their final paycheck. Check your plan document or contact SABC.