FLEXIBLE SPENDING ACCOUNTS (FSA & DCFSA) - 2027 OPEN ENROLLMENT
November 1 - November 20
The City of Lynn offers eligible employees the opportunity to participate in a Healthcare Flexible Spending Account (FSA) and/or a Dependent Care Flexible Spending Account (DCFSA). These accounts allow employees to set aside pre-tax dollars to pay for eligible expenses.
IMPORTANT: FSA and DCFSA enrollment is required annually. Elections do not automatically renew.
Employees must enroll through Employee Access during the open enrollment period to participate in 2027.
New for 2027 – P&A Group
Beginning January 1, 2027, P&A Group will replace HRC Total Solutions (HRTC) as the City's Flexible Spending Account administrator.
P&A Group will administer Healthcare FSA and Dependent Care FSA accounts, including claims and reimbursements, for the 2027 plan year.
Employees with existing 2026 accounts should review the transition information below for important instructions regarding prior-year claims and carryover balances.
Understanding Your FSA Options
Healthcare Flexible Spending Account (FSA)
A Healthcare FSA allows employees to set aside pre-tax dollars to pay for eligible healthcare expenses for themselves and qualifying family members.
Eligible expenses may include:
- Medical copayments and deductibles
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Prescription medications
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Dental expenses
Vision exams, eyeglasses, and contact lenses
- Other IRS-eligible healthcare expenses
Annual Contribution Limit
The City adopts the annual IRS Healthcare FSA contribution limit.
Healthcare FSA Carryover
The City allows eligible unused Healthcare FSA funds to carry over to the following plan year, up to the annual IRS-permitted carryover limit.
Any funds exceeding the allowable carryover amount will be forfeited after the applicable claims submission period.
90-Day Run-Out Period
Employees have 90 days following the end of the plan year to submit claims for eligible expenses incurred during their applicable coverage period.
A run-out period is not a grace period. It provides additional time to submit claims for previously incurred expenses but does not extend the period for incurring eligible expenses.
Dependent Care Flexible Spending Account (DCFSA)
A Dependent Care FSA allows eligible employees to set aside pre-tax dollars for qualifying dependent care expenses that enable them to work or actively look for work, subject to IRS requirements.
IMPORTANT: A DEPENDENT CARE FSA IS NOT FOR MEDICAL EXPENSES.
Before enrolling, employees must have an eligible dependent AND reasonably expect to incur qualifying dependent care expenses during the plan year.
Eligible dependents generally include:
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Children under age 13 who meet IRS requirements.
- A spouse or other qualifying individual who is physically or mentally incapable of self-care and meets applicable IRS requirements.
Qualifying expenses may include daycare, preschool, before-school and after-school programs, and certain summer day camps.
If married, your spouse generally must also be working or actively looking for work, unless an IRS exception applies.
Annual Contribution Limit
The City adopts the applicable annual IRS Dependent Care FSA contribution limit, subject to household, filing-status, and other IRS requirements.
Important DCFSA Rules
- Having a dependent does not automatically qualify you for a DCFSA.
- DCFSA funds may only be used for qualifying dependent care expenses, not medical expenses.
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Reimbursements are limited to the funds available in your account.
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DCFSA funds do not carry over to the following year.
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Unused funds remaining after the applicable claims submission deadline will be forfeited.
- Elections cannot be canceled or reduced simply because an employee later determines that their dependent or expenses are not eligible.
Employees should carefully evaluate their eligibility and anticipated expenses before making an election.
How to Enroll
Open Enrollment: November 1–30, 2026
All FSA and DCFSA elections must be completed through Employee Access.
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Log in to Employee Access and navigate to My Benefits then Enrollment.
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Select the Healthcare FSA and/or Dependent Care FSA plan.
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Enter the annual amount you wish to contribute for 2027.
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Review your selections and select Review and Submit.
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Select Confirm and Submit to finalize your enrollment.
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Verify that you receive the thumbs-up confirmation screen and the option to print your enrollment confirmation.
YOUR ENROLLMENT IS NOT COMPLETE UNTIL YOU RECEIVE THE CONFIRMATION SCREEN.
Please print or save a copy of your enrollment confirmation for your records.
Understanding Your Payroll Deductions
Your election is an annual calendar-year amount. For employees participating for the full year, weekly deductions are calculated as follows:
Employees enrolling after the beginning of the calendar year should consider their remaining pay periods and anticipated eligible expenses before selecting an annual election amount.
Important Enrollment Reminders
- FSA and DCFSA elections must be renewed annually.
- Elections are for the January 1–December 31, 2027 plan year.
- Elections cannot be changed during the plan year unless a qualifying event occurs.
- Carefully estimate eligible expenses before selecting your annual contribution amount.
- Healthcare FSA and DCFSA accounts have different eligibility requirements, reimbursement rules, and carryover provisions.
ENROLLMENT MUST BE COMPLETED ANNUALLY. RE-ENROLLMENT IS NOT AUTOMATIC.