Upcoming Proposed Flexible Spending Account Changes

The APWU was recently notified of the proposed change to the FSA (Flexible Spending Account) administrator. FSA is an important negotiated benefit as it allows employees to put aside “pre-tax” dollars for certain medical and dependent care expenses.

The proposed management change will not eliminate the FSA. In addition, management’s changes are not related to upcoming changes in the FEBH/PSHB Health Plans beginning in 2025.

Management is switching the FSA administrator for enhanced security and more flexibility in how employees can access their accounts. Management understands that they need to keep all of the benefits of the current program, and says they intend to.

However, the current administrator (FSAFEDs) and the Postal Service are notifying current FSA enrollees that their funds must be used by December 31st, 2024, or they will be forfeited. This is completely unacceptable. Employees who put money in their FSA expecting to roll over any remaining money should not lose out in this switch in administrators.

The APWU is actively monitoring the situation.President Dimondstein has raised our concerns to the Postmaster General’s office. In addition, we are researching any possible legal action.

The Postal Service needs to ensure a roll over between FSA administrators, delay implementation of the change so that employees have time to use their FSA funds, or guarantee any money left in FSA accounts will remain available to employees next year.

Employees who wish to enroll in FSA for next year will need to create a “login.gov” account prior to Open Season.

The APWU leadership will continue to share any additional information and updates.