TexFlex

General Questions

Effective June 1, 2022, PayFlex is part of Millennium Trust Company. How does this acquisition impact TexFlex participants?

• PayFlex continues to administer TexFlex FSAs and provides customer service to TexFlex participants without disruption to your TexFlex flexible spending accounts (FSAs).
• If you have a TexFlex debit card, you can continue to use it for eligible expenses.
• The TexFlex Customer Care team remains at your service through the same toll-free number you use today.
• You can continue to access your account online at TexFlexERS.com or through the PayFlex Mobile^® app just as you do today.

With this acquisition, Millennium Trust Company plans to make investments in PayFlex’s employees, technology, and processes to deliver the best experience to serve you.

What is a TexFlex Flexible Spending Account (FSA)?
A TexFlex flexible spending account (FSA) is a tax saving program regulated by the Internal Revenue Service (IRS). You can have a set amount of money deducted from each paycheck before taxes, which lowers your taxable income and the amount you pay in federal income taxes.

The amount you have taken out is called a contribution. Your contribution is placed in an account for you. When you enroll in a TexFlex health care or limited-purpose FSA, you can use your TexFlex debit card to pay for eligible health care expenses. You can also pay for eligible expenses with cash, personal check or credit card. Then, submit claims for reimbursement online, by mail or fax. (The IRS decides which expenses are eligible.)

FSAs have a use-it-or-lose-it rule, which means you could forfeit at least some of the money in your FSA(s) if you don’t spend it during the plan year (September 1 – August 31). So, it is important to review your election amount(s) and ensure they do not exceed your planned expenses for the year. To learn how you can avoid forfeiting your FSA funds, see “How much can I contribute?” and “Carryovers and the Dependent Care Grace Period” below.

Following is a list of common eligible expenses for each type of TexFlex FSA or you can view a more detailed list.

Health care FSA

• Eligible out-of-pocket medical, dental, vision, hearing and prescription drug expenses that your insurance doesn’t cover, such as copays and coinsurance
• Over-the-counter drugs, medicine and supplies

Limited-purpose FSA (for Consumer Directed HealthSelect participants only)

• Eligible dental and vision expenses that your insurance doesn’t cover like glasses, contacts, laser eye surgery, dental exams and orthodontia/braces

Dependent care FSA

• Child day care for children under age 13 that allows you or your spouse to be gainfully employed, actively seeking gainful employment or a full-time student
• Before- and after-school care or summer day camps for children under age 13
• Adult day care for an adult tax dependent who is incapable of self-care

Dependent care expenses are eligible for TexFlex if the dependent is:

• claimed by you as a federal income tax exemption,
• residing in your household, and
• under age 13, or physically/mentally incapable of self-care.

For more information about qualifying dependents, refer to  IRS Publication 503.

Who can enroll?
All benefits-eligible active employees and return-to-work retirees with active employee benefits can enroll in the health care and dependent care FSAs. Only Consumer Directed HealthSelect participants can enroll in the limited-purpose FSA.

Retirees are not eligible to enroll in TexFlex. If you have a health care or limited-purpose FSA for the plan year prior to retirement, any eligible health expenses you incur after retirement are not reimbursed unless you choose to continue FSA participation for the same plan year through COBRA. You could file claims for eligible expenses incurred throughout your participation. Your contributions will be made after tax.

Participation in the TexFlex program is voluntary.

You don’t have to enroll in a Texas Employees Group Benefits Program (GBP) medical, dental or vision plan to participate in the TexFlex health care FSA or dependent care FSA.

Note: If you are enrolled in Consumer Directed HealthSelect, you cannot have a health care FSA, but you can have a limited-purpose FSA for eligible vision and dental expenses.

When can I use my FSA funds?
With a health care or limited-purpose FSA, your entire election amount is available for you to use on September 1 (or, if you’re enrolling as a new hire or after a qualifying life event, your first day in the program), even though you haven’t contributed the full amount.

The dependent care FSA works much like a checking account -- the money has to be deducted from your paycheck and deposited into your TexFlex account before you can use it. Dependent care services must be received by the eligible dependent before filing your claim for reimbursement.

Who is the TexFlex administrator?
PayFlex^® is the TexFlex administrator. If you have questions about your TexFlex FSA(s), call PayFlex customer service toll-free at (866) 353-9839 (TTY: 711). Representatives are available Monday through Friday, 7 a.m. to 7 p.m. CT, and Saturday, 9 a.m. to 2 p.m. CT, excluding holidays.

You may also want to visit the TexFlex website at www.TexFlexERS.com to:

• Review program resources
• Learn about your FSA and any updates
• Manage your TexFlex account

How can I save with TexFlex Flexible Spending Accounts (FSA)?
TexFlex FSA contributions are deducted from your paycheck before taxes. This pre-tax deduction lowers your taxable income, so you pay less federal income tax and Federal Insurance Contributions Act (FICA) tax, saving you money. Below is an example of the potential savings.

Note: This example shows tax savings for a single taxpayer with no dependents. Actual savings will vary based on your individual tax situation.

How do I enroll or change my contributions in TexFlex?
You can enroll in an FSA:

• during your Summer Enrollment phase;
• within 31 days of a qualifying life event (QLE), such as marriage, birth, etc.;
• within 31 days of your date of hire; or
• within 60 days of your date of hire if you are subject to a health coverage waiting period to enroll in a TexFlex health care or limited-purpose FSA.

Once you enroll in the program, your participation will automatically continue into the next plan year. You can make changes to your enrollment or your annual contributions during Summer Enrollment. You may increase (up to the annual maximum) or decrease your contribution during the plan year, without waiting for Summer Enrollment, only if you experience a qualifying life event.

If your child turns age 13 during the plan year, you can change the contributions to your TexFlex dependent care FSA within 31 days of their birthday.

Can I move my funds into different accounts?
No. Each account is a separate plan, which means you cannot transfer funds between accounts.

Do I need to re-enroll each year during Summer Enrollment?
If you do not make any changes to your TexFlex elections during Summer Enrollment, you will be automatically re-enrolled at your previous election amount.

If the IRS increases the annual maximum contribution amount from one year to the next, your contribution amount will not automatically increase. You will need to change your contribution election during Summer Enrollment or with a qualifying life event.

You should review your elections every year to make sure your contributions don’t exceed your planned expenses.

For Plan Year 2023:

• You can carry over up to $570 in unused health care or limited-purpose FSA funds to Plan Year 2024. You will forfeit any remaining amount above that $570 limit.
• For the dependent care FSA, you will forfeit any unused funds left in the account after November 15, 2023, the end of the grace period.

You can learn more about the carryover and grace period below.

How much can I contribute?
Below are the Internal Revenue Service (IRS) annual minimum and maximum contribution amounts for Plan Year 2023. You decide how much of your paycheck to contribute to your FSA. The IRS can change minimums and maximums from year to year.

Minimum/Maximums

*If you and your spouse each have a dependent care account, you are limited to $5,000 between the two of you.

For Plan Year 2023 (September 1, 2022 – August 31, 2023):

• Health care and limited-purpose FSA participants can carry over up to $570 in unused Plan Year 2023 funds to Plan Year 2024.
• Dependent care FSA participants will have a 2½-month “grace period”— through November 15, 2023— to spend any Plan Year 2023 funds left in their FSAs after August 31, 2023.

To learn more about carryovers and the dependent care FSA grace period, see frequently asked questions below.

Are there fees for TexFlex FSAs?
There are no administrative fees for TexFlex FSAs for Plan Year 2023 (September 1, 2022 – August 31, 2023). In addition, a debit card is provided at no cost for health care and limited-purpose FSA participants.

Will I receive a TexFlex debit card. If so, do I need to keep it?
If you enroll in a health care FSA or limited-purpose FSA, you’ll automatically receive a TexFlex debit card at no cost. You can use it to pay for eligible expenses. If you decide not to use it, that’s OK. But you should still keep it. This is because you’ll need it to set up your online account and when you call customer service.

You can ask for additional cards for eligible dependents through www.TexFlexERS.com or by calling PayFlex at (866) 353-9839 (TTY: 711). There is no cost to you for additional cards.

As always, you should save receipts, Explanations of Benefits (EOBs) and itemized statements for your debit card purchases.

Note: The card is not available to dependent care FSA participants.

Is there a way to manage my TexFlex FSA online or through an app?

• Yes. If you want to manage your FSA(s) or submit claims online, you will need to set up an online account.
• TexFlex health care and limited-purpose FSA participants - Be sure to have your new TexFlex debit card nearby when you set up your online account. You’ll need to enter the last 4 digits of your card number.
• PayFlex also offers a mobile app to manage your TexFlex account(s). You can view your balance(s) and transactions, submit claims and more. Search for the PayFlex Mobile^® app in the Apple App Store or Google Play.

How do I set up my online account?
If you have a TexFlex FSA, you can set up your online account. Health care FSA and limited-purpose FSA participants — be sure to have your TexFlex debit card nearby. You’ll need it to set up your online account.

To get started, click LOGIN and select CREATE PROFILE.

How do I submit claim for reimbursement?
You can submit claims online at www.TexFlexERS.com. Log in and click File a claim, under Account Actions. You can also submit claims through the PayFlex Mobile^® app or by completing a paper claim form and faxing or mailing it to PayFlex.

What are the rules for unused FSA funds?
The health care and limited-purpose FSAs allow participants to carry over up to $570 in unused funds from Plan Year 2023 to Plan Year 2024. The minimum carryover amount is $25 if you do not re-enroll for the next plan year. Any unused funds over $570 will be forfeited.

The dependent care FSA does not allow any funds to carry over. Instead, there’s a 2½-month grace period after August 31 in which participants can spend unused funds on eligible expenses. Plan Year 2023 funds not spent by November 15, 2023 will be forfeited.

What happens to my TexFlex FSA if I leave state employment?
When you terminate employment, you can only submit claims for eligible expenses incurred through your termination date.

You have the option to continue participation in your TexFlex health care or limited-purpose FSA through COBRA and could file claims for eligible expenses incurred throughout your participation. Your contributions will be made after tax.

If you have a TexFlex debit card, it will be deactivated on the last day of the month in which your employment ends.

Do I have to enroll in a TexFlex limited-purpose FSA if I enroll in Consumer Directed HealthSelect?
If you enroll in Consumer Directed HealthSelect, you do not have to enroll in a TexFlex limited-purpose FSA. However, if you are new to Consumer Directed Health Select and have funds remaining in a TexFlex health care FSA on September 1, the Employees Retirement System of Texas (ERS) will open a TexFlex limited-purpose FSA for you. Your remaining health care FSA funds will be moved to the limited-purpose FSA because IRS rules do not allow participation in both a health care FSA and a health savings account (HSA) at the same time. You can use the funds in your limited-purpose FSA on eligible dental and/or vision expenses and save your HSA funds for other health care expenses.

Is ERS continuing to offer the commuter spending account program?
ERS discontinued the TexFlex commuter spending account (CSA) program, effective September 1, 2021.

Who do I contact for questions about TexFlex?
You can call PayFlex with questions about your Plan Year 2023 FSA(s) at (866) 353-9839 (TTY: 711), Monday through Friday, 7 a.m. to 7 p.m. CT and Saturday, 9 a.m. to 2 p.m. CT.

Carryover, Grace Period and Run-out Period

What is the TexFlex flexible spending account (FSA) carryover, grace period and run-out period?
Carryover is a feature that allows TexFlex health care or limited-purpose FSA participants to carry over unused funds from one plan year to the next. The grace period allows dependent care FSA extra time to use FSA funds after the plan year ends. The run-out period gives you more time to submit claims for eligible expenses that you incurred during the plan year. The carryover, grace period and run-out period can help you avoid forfeiting your FSA funds so you can make the most of your TexFlex FSA benefit.

The carryover minimums and maximums and grace period for Plan Year 2023 are listed below:

• The health care and limited-purpose FSAs allow participants to carry over up to $570 in unused funds from Plan Year 2023 to Plan Year 2024. The minimum carryover amount is $25 if you do not re-enroll for the next plan year. Any unused funds over $570 will be forfeited.
• The dependent care FSA does not allow any funds to carry over. Instead, there’s a 2½-month grace period after August 31 in which participants can spend unused funds on eligible expenses. Plan Year 2023 funds not spent by November 15, 2023 will be forfeited.

The following chart summarizes the carryover, grace period and run-out period for Plan Year 2023 (PY 23) TexFlex FSAs.

Is there a carryover minimum?
If you do not re-enroll in a TexFlex health care or limited-purpose FSA during Summer Enrollment, the minimum carryover amount is $25. You will forfeit any funds less than $25 remaining in your account on September 1 if you do not re-enroll.

Which TexFlex FSAs include the carryover?

• The health care and limited-purpose FSAs allow participants to carry over up to $570 in unused funds from Plan Year 2023 to Plan Year 2024. The minimum carryover amount is $25 if you do not re-enroll for the next plan year. Any unused funds over $570 will be forfeited.
• The dependent care FSA does not allow any funds to carry over. Instead, there’s a 2½-month grace period after August 31 in which participants can spend unused funds on eligible expenses. Plan Year 2023 funds not spent by November 15, 2023 will be forfeited.

Who is eligible for carryover?
You must be a TexFlex health care or limited-purpose FSA participant on the last day of plan year to have a carryover.

Only health care and limited-purpose FSA participants can carry over up to $570 to Plan Year 2024. There is a minimum carryover amount of $25 if you do not re-enroll in the new plan year.

Dependent care FSA participants will have a 2½-month grace period to spend unused funds through November 15, 2023.

Does the amount I carry over change the amount I can contribute to the health care FSA?
No. You can still contribute up to the IRS maximum contribution limit each plan year. If you have a carryover amount, it will be added to the amount you elect to contribute to the TexFlex health care FSA. Be sure that your election and carryover amount don’t exceed your planned expenses.

Example: Let’s say you plan to spend $2,500 on health care expenses in Plan Year 2023. You also have $500 in unused health care FSA funds from Plan Year 2022. That amount will carry over to Plan Year 2023. Based on this information, your Plan Year 2023 election amount should not exceed $2,000 to help avoid forfeiting funds at the end of year.

Note: You can contribute up to the IRS maximum of $2,850. Just know that health care and limited-purpose FSA participants can carry over only up to $570 in unused funds from Plan Year 2023 to Plan Year 2024. Any amount above that limit will be forfeited.

What happens to my TexFlex health care FSA balance if I was enrolled in Plan Year 2022 and didn't enroll for Plan Year 2023?
Any unused funds up to $550 from Plan Year 2022 carried over to Plan Year 2023. Those unused funds are considered “carryover funds.” PayFlex moved your carryover funds to a Plan Year 2023 account. There is a minimum carryover amount of $25 if you do not re-enroll in the new plan year. You will forfeit any funds less than $25 remaining in your account on September 1.

You can access health care or limited-purpose FSA carryover balance after the blackout period as long as you are actively employed.

You can use your TexFlex debit card to access your health care or limited-purpose carryover balance or pay with cash, check or credit card and submit a claim to PayFlex for reimbursement.

Does the carryover apply to the TexFlex dependent care FSA?
No. For Plan Year 2023, there will be a 2½-month grace period after August 31, 2023. Participants can continue to use their Plan Year 2023 funds through November 15, 2023. Any Plan Year 2023 funds not spent by November 15, 2023 will be forfeited.

Does my carryover balance expire?
No. You can use your carryover amount until you leave employment or exhaust the funds. You have until December 31 to submit claims incurred before your termination date. Keep in mind you can carry over only a certain unused amount of the health care or limited-purpose FSA each year. The maximum carryover amount is set by the IRS and could change from year to year.

For Plan Year 2023, health care and limited-purpose FSA participants can carry over up to $570. There is no minimum carryover if you re-enroll for Plan Year 2024. If you do not re-enroll in Plan Year 2024, the minimum amount that you can carry over is $25.

Can I use my TexFlex debit card to access my carryover funds?
You can use your debit card to access your health care or limited-purpose FSA carryover funds once they are moved from the previous year to the new Plan Year. You will not be able to access those funds while they are being moved. This period is called the blackout period. It allows PayFlex time to process claims to ensure your carryover balance is accurate before it’s made available for use.

Will my TexFlex debit card have my carryover balance?
Yes. Your TexFlex debit card will have your health care or limited-purpose FSA carryover balance after the blackout period, whether you continued your participation in the TexFlex health care or limited-purpose FSA or not, as long as you are actively employed.

If you terminate employment September 1, 2022 through August 31, 2023, you can still file claims for expenses incurred prior to the termination date; however, you will no longer be able to use the debit card.

You cannot use the TexFlex debit card for dependent care expenses.

If my employment ends before August 31 and I elect to continue participation in my FSA through COBRA, will my balance carry over?
If you leave employment before August 31, you would need to continue your participation in the TexFlex health care or limited-purpose FSA until August 31 through COBRA for your balance to carry over. Otherwise, you won’t be eligible for the carryover. Funds in your FSA will be forfeited after the run-out period ending December 31. You do not have to continue your participation if you don’t want to.

If you have funds remaining in your dependent care FSA when you leave employment, you should contact PayFlex to learn your options.

Once you leave employment, you can no longer use your TexFlex debit card. You would need to submit claims for your eligible expenses. You can do this online, through the PayFlex Mobile^® app or complete a paper claim form and fax or mail it to PayFlex.