NEW! FLEXIBLE SPENDING ACCOUNTS IN 2008 FOR TRUST FUND EMPLOYEES

FLEXIBLE SPENDING ACCOUNTS  A Flexible Spending Account (FSA) allows you to set aside a portion of your salary to be used to reimburse yourself for qualified health care and dependent care expenses. Your taxable salary is reduced by the amount deducted from your paycheck to fund your account(s), resulting in lower income and Social Security taxes.

FLEXIBLE SPENDING ACCOUNTS  Two types of FSAs will be available as of January 1, Health Care FSA 2.Dependent Care FSA

FLEXIBLE SPENDING ACCOUNTS  HEALTH CARE FSA Allows you to set aside a specified amount of pretax dollars to be used for reimbursement of eligible unreimbursed medical expenses Allows you to set aside a specified amount of pretax dollars to be used for reimbursement of eligible unreimbursed medical expenses  DEPENDENT CARE FSA Allows you to elect a specified amount of pretax dollars for the reimbursement of employment-related dependent care expenses that you and/or your spouse (if married) incur due to your need to work, look for work, or attend school full-time Allows you to elect a specified amount of pretax dollars for the reimbursement of employment-related dependent care expenses that you and/or your spouse (if married) incur due to your need to work, look for work, or attend school full-time

FLEXIBLE SPENDING ACCOUNTS  ELIGIBILITY FOR PARTICIPATION Active indefinite Trust employees who work at least 40 hours per pay period, or active temporary employees with appointments of at least 90 days whose work schedule is at least 40 hours per pay period. Active indefinite Trust employees who work at least 40 hours per pay period, or active temporary employees with appointments of at least 90 days whose work schedule is at least 40 hours per pay period.

FLEXIBLE SPENDING ACCOUNTS  OPEN SEASON ENROLLMENT NOVEMBER 12 THROUGH DECEMBER 10  Open Season enrollment will be online through CONEXIS at  Follow the instructions in the handout – CONEXIS ~ Online, It’s as easy as 1,2,3 !

FLEXIBLE SPENDING ACCOUNTS  2008 annual minimum for either plan: $  2008 annual maximum for either plan: $5,000.00

FLEXIBLE SPENDING ACCOUNTS  HOW ACCOUNTS ARE FUNDED Pre-tax payroll deductions Pre-tax payroll deductions Funding may have an impact on your cash flow, i.e., you essentially “pay twice” for your eligible expenses, once via pre-tax payroll deduction to fund your account, and again when you actually incur and pay the expense. You will realize the FSA’s full benefit when you receive your tax-free reimbursement. Funding may have an impact on your cash flow, i.e., you essentially “pay twice” for your eligible expenses, once via pre-tax payroll deduction to fund your account, and again when you actually incur and pay the expense. You will realize the FSA’s full benefit when you receive your tax-free reimbursement. You cannot transfer funds between the HCFSA and DCFSA You cannot transfer funds between the HCFSA and DCFSA

FLEXIBLE SPENDING ACCOUNTS  IMPACT ON YOUR PAY AND OTHER BENEFITS Pre-tax FSA contributions will reduce your taxable wages for income tax purposes Pre-tax FSA contributions will reduce your taxable wages for income tax purposes Pay-related benefits (employer-sponsored life, disability insurance and retirement benefits) are not reduced Pay-related benefits (employer-sponsored life, disability insurance and retirement benefits) are not reduced Social Security (FICA) taxes are based on your reduced pay – future Social Security benefits may be slightly lower. Social Security (FICA) taxes are based on your reduced pay – future Social Security benefits may be slightly lower.

FLEXIBLE SPENDING ACCOUNTS  The Plan Year begins January 1, 2008  May incur claims until March 15, 2009  Must submit claims for reimbursement by April 30, 2009  You must complete a new election each year during Open Season.

FLEXIBLE SPENDING ACCOUNTS  “QUALIFYING LIFE EVENTS” PERMIT CHANGE Birth or adoption of a child Birth or adoption of a child Military deployment Military deployment Change in legal marital status Change in legal marital status Death of a dependent Death of a dependent Change in dependent eligibility Change in dependent eligibility Change in employment Change in employment Change in child/elder care provider or significant cost change Change in child/elder care provider or significant cost change Change in employment affecting eligibility for benefits. Change in employment affecting eligibility for benefits.

FLEXIBLE SPENDING ACCOUNTS HEALTH CARE FLEXIBLE SPENDING ACCOUNTS (HCFSA)  Allows you to set aside a specified amount of pretax dollars to be used for reimbursement of eligible unreimbursed medical expenses.

HCFSA  ELIGIBLE DEPENDENTS HCFSA expenses must be for you, your spouse, your child or a tax-qualified dependent. HCFSA expenses must be for you, your spouse, your child or a tax-qualified dependent. A tax-qualified dependent is someone for whom you can claim a federal tax exemption. A tax-qualified dependent is someone for whom you can claim a federal tax exemption.

HCFSA  COST SAVINGS EXAMPLE: Estimated Eligible ExpensesExample Prescription Drug Copays$ Prescription Drug Copays$ Doctor Visit Copays Doctor Visit Copays Annual Dental Deductible Annual Dental Deductible Prescription Eyeglasses Prescription Eyeglasses Prescription Sunglasses Prescription Sunglasses Chiropractor Visits Chiropractor Visits Unreimbursed dental expenses 1, Unreimbursed dental expenses 1, Total $2, Est. 30% tax bracket x.30 Est. 30% tax bracket x.30 SAVINGS$654.00

HCFSA  EXAMPLES OF HCFSA ELIGIBLE EXPENSES Over-the-counter medicines (allergy, antacid, aspirin, etc.) Over-the-counter medicines (allergy, antacid, aspirin, etc.) Copayments, coinsurance, and deductibles (not insurance premiums) Copayments, coinsurance, and deductibles (not insurance premiums) Dental care and orthodontia (children and adults) Dental care and orthodontia (children and adults) Vision care (including eyeglasses, contact lenses, saline solution, etc.) Vision care (including eyeglasses, contact lenses, saline solution, etc.) Laser vision correction Laser vision correction Chiropractic care Chiropractic care Diagnostic services Diagnostic services Diabetic supplies Diabetic supplies Immunizations Immunizations Hearing aids Hearing aids Orthopedic shoes and inserts Orthopedic shoes and inserts Durable medical equipment … and more Durable medical equipment … and more

HCFSA  EXAMPLES OF INELIGIBLE HEALTH CARE EXPENSES Expenses that are not deductible on your federal income tax return Expenses that are not deductible on your federal income tax return Controlled substances Controlled substances Cosmetic dental work Cosmetic dental work Cosmetic surgery Cosmetic surgery Diaper service Diaper service Electrolysis Electrolysis Health care plan contributions Health care plan contributions Health club dues Health club dues Vitamins or weight loss aids Vitamins or weight loss aids

HCFSA  WHEN TO FILE CLAIMS Claims for unreimbursed medical expenses can be submitted at any time throughout the year, regardless of the funding available in your HCFSA account. Claims for unreimbursed medical expenses can be submitted at any time throughout the year, regardless of the funding available in your HCFSA account.

HCFSA  HOW TO SUBMIT A HCFSA CLAIM The request for reimbursement (claim form) is on the CONEXIS website, The request for reimbursement (claim form) is on the CONEXIS website,  INCLUDE ONE OF THE FOLLOWING: Itemized statement from the service provider Itemized statement from the service provider Insurance explanation of benefits (EOB) Insurance explanation of benefits (EOB) Pharmacy statement for prescription drugs Pharmacy statement for prescription drugs Itemized cash register receipt for eligible OTC medications. Itemized cash register receipt for eligible OTC medications.

HCFSA  ITEMIZED STATEMENT MUST INCLUDE: Nature of the expense (e.g. type of service or treatment provided), or if an OTC drug, the receipt must indicate the name of the drug Nature of the expense (e.g. type of service or treatment provided), or if an OTC drug, the receipt must indicate the name of the drug Date of service Date of service Name of provider Name of provider Amount of the expense Amount of the expense Patient’s name Patient’s name

HCFSA QUESTIONS?

FLEXIBLE SPENDING ACCOUNTS DEPENDENT CARE FSA  Allows you to elect a specific amount of pretax dollars for the reimbursement of employment-related dependent care expenses that you and/or your spouse (if married) incur due to your need to work, look for work, or attend school full-time.

DCFSA  “QUALIFYING CHILD” DEFINITION An individual who is a qualifying child of the employee, (including brother, sister, step- sibling) or descendant of the child (niece, nephew, grandchild) who shares the same principal place of abode with the employee for over half the year and does not provide over half of his/her support. An individual who is a qualifying child of the employee, (including brother, sister, step- sibling) or descendant of the child (niece, nephew, grandchild) who shares the same principal place of abode with the employee for over half the year and does not provide over half of his/her support.

DCFSA  EXAMPLES OF DCFSA ELIGIBLE EXPENSES Before and after school care Before and after school care Care for a child under age 13 Care for a child under age 13 Care for disabled or elderly dependent Care for disabled or elderly dependent Care given by a nanny Care given by a nanny Care at a sick child facility Care at a sick child facility Summer day camp Summer day camp Tuition for pre-kindergarten or nursery school Tuition for pre-kindergarten or nursery school

DCFSA  IRS LIMITATIONS IF YOUR SPOUSE ALSO CONTRIBUTES TO A DCFSA You are limited to a combined DCFSA contribution of $5,000 in a calendar year You are limited to a combined DCFSA contribution of $5,000 in a calendar year If you and your spouse file separate federal tax returns, the most you can contribute is $2,500 a year If you and your spouse file separate federal tax returns, the most you can contribute is $2,500 a year If you file a joint return, you can’t contribute more than you earn (or what your spouse earns, if it is less than what you earn for the year), with a limit of $5,000. If you file a joint return, you can’t contribute more than you earn (or what your spouse earns, if it is less than what you earn for the year), with a limit of $5,000.

DCFSA  COST SAVINGS EXAMPLE Estimated Eligible ExpensesExample Before/after school programs$3, Before/after school programs$3, Summer day camp 2, Summer day camp 2, Total$5, Est. 30% tax bracket x.30 Est. 30% tax bracket x.30 SAVINGS$1,500.00

DCFSA  DEPENDENT CARE CLAIMS Must be fully completed and signed, including provider certification. Must be fully completed and signed, including provider certification. Dependent care claims without provider signature/certification must include itemized statement with: Dependent care claims without provider signature/certification must include itemized statement with: Date(s) of serviceDate(s) of service Dependent’s name and date of birthDependent’s name and date of birth Itemization of chargesItemization of charges Provider’s name, address and tax ID/SSNProvider’s name, address and tax ID/SSN Note: cancelled checks, cash register receipts and credit card receipts are not acceptable.Note: cancelled checks, cash register receipts and credit card receipts are not acceptable.

DCFSA  WHEN TO FILE CLAIMS Claims for dependent care expenses can be submitted at any time throughout the year, but your dependent care account balance must be sufficient to cover the claimed amount at the time of your claim submission. Claims for dependent care expenses can be submitted at any time throughout the year, but your dependent care account balance must be sufficient to cover the claimed amount at the time of your claim submission.

DCFSA QUESTIONS?

FLEXIBLE SPENDING ACCOUNTS REMINDER! REMINDER! CAREFULLY CALCULATE THE AMOUNT YOU ELECT TO CONTRIBUTE TO YOUR FSA ACCOUNTS. CAREFULLY CALCULATE THE AMOUNT YOU ELECT TO CONTRIBUTE TO YOUR FSA ACCOUNTS. THE IRS IMPOSES A “USE IT OR LOSE IT” RULE – YOU FORFEIT ANY REMAINING MONEY IN YOUR ACCOUNT AFTER REIMBURSEMENT OF ELIGIBLE EXPENSES FOR THE YEAR. THE IRS IMPOSES A “USE IT OR LOSE IT” RULE – YOU FORFEIT ANY REMAINING MONEY IN YOUR ACCOUNT AFTER REIMBURSEMENT OF ELIGIBLE EXPENSES FOR THE YEAR.

FLEXIBLE SPENDING ACCOUNTS  Estimate your annual unreimbursed medical and/or dependent care expenses.  Follow the step-by-step instructions to enroll online at between November 12 and December 10,  FSA Customer Service: (866) 