You will also receive a Summary Plan Description (SPD), which is a simplified version of the Plan Document, intended to help participants more easily understand the benefits they are entitled to under the plan.

After the enrollment, the SPD must 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 copy to any employee that request a copy or does not have access to the company website.

Once you’ve enrolled, you will receive a deduction report outlining each employee’s election. This report will list the insurance product(s), premium amount, and indicate café or non-café. Premium(s) listed as café will be pre-taxed under the plan. The report will also list any flexible spending elections (i.e. Dependent Care and/or Unreimbursed Medical).

Federal Regulations require that annual elections for Unreimbursed Medical Spending participants be available to them at all times 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 claims can be paid, regardless of the participants’ current balance. Your SABC representative will recommend a pre-funding amount based on participation.

You will continue to send all insurance premiums to the designated insurance carrier, as you have likely done in the past. After each payroll, you will submit your flexible spending deductions in one of two ways:

1. Submit a check made payable to Southern Administrators & Benefits Consultants Inc.
2. Deposit the money directly into the bank account that was set up to accommodate your flexible spending funds.
   1. If you have not set up your flexible spending funds account, please contact us.
   2. If you are submitting the funds directly into the account, you must notify SABC of the deposit and the amount deposited.
   3. The amount must balance with the deduction report. If the deposit differs from the original deduction report, or from the previous payroll, an explanation of the changes should accompany the deposit notification by completing a deposit report.

All elections made under the Cafeteria Plan are irrevocable, meaning insurance premiums, and/or flexible spending deductions cannot be changed or dropped during the plan year without a qualified status change.

However, just because the event occurs does not necessarily mean that the change requested qualifies or will be approved. The change requested must be consistent with the event. For instance – if an employee gets a divorce, they would be allowed to drop their spouse from their insurance plan(s). However, if an employee had a baby, it would not allow her to drop her spouse from her insurance, because it is not consistent with the event. It is recommended that you contact our office to verify that the status change qualifies, before approving. Once verified, a status change form will need to be completed.

If a 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.