City & County of Honolulu’s“City Flex”

Flexible Spending Program

National Benefit Services, LLC

Third Party Administrator

Who is National Benefit Services, LLC?

Salt Lake City, UT Dallas, TX Honolulu, HI San Diego, CA

Who is National Benefits Services, LLC?

• NBS has been working with employers in Hawaii for over 15 years, including:

- State of Hawaii

- City & County of Honolulu

- Many other private sector ERs

What is a Limited Purpose Flexible Spending Account? (LFSA)

The Basics

By enrolling in the City Flex Plan offered through NBS, city & county employees can save money on taxes by using their FSA dollars for everydayeligible expenses.

The most important feature of a the FSA benefits is that they allow you to pay for expenses you already plan on incurring, but you are able to pay for those expenses with pre-tax funds which allows you to increase your take-home pay.

Medical FSA:

▪ Maximum annual limit is $2,400

Dependent Care FSA:

▪ Maximum annual limit is $5,000 per year or $2,500 if you are married and filing separately

City Flex Benefit Options

Employee Sample Savings

$926 in savings

Save on Taxes!

An employee, Susan, has one child attending preschool.

She pays her pre-school provider $400/month.

She is paid twice per month so she pays her preschool provider $200 every paycheck.

No HSA With HSA

Salary $36,000 $36,000

Contribution — $3,350

Taxable Income $36,000 $32,650

Taxes $9,954 $9,028

MedicalExpenses $3,350 —

SpendableIncome $22,696 $23,622

$926 in savings

$1441 in annual savings

No FSA With FSA

Gross Pay $1,200.00 $1,200.00

Contribution — $200

Taxable Income $1,200.00 $1,000.00

Taxes $261.41 $201.36

Net Pay $938.59 $798.64

Preschool Expense $200.00 —

SpendableIncome $738.59 $798.64

Employee Sample SavingsWhy Participate?

Eligible Medical FSAExpenses

Medical Deductible Expenses

Copays (office visits, lab work, etc)

Prescription Drugs

Chiropractic Care

Acupuncture

Physical Therapy

Individual Counseling/Therapy

First Aid Items

Diabetic Supplies

Vaccinations

Hearing Aids & Batteries

Dental Copays

Cleanings

Fillings

Crowns/Bridges

Dentures

Orthodontia

Vision Eye Exams

Lenses/Frames

Contact Lenses

Contact Lens Solution

Lasik Eye Surgery

• Cosmetic Surgeries/Procedures

• Vitamins & Supplements

• Massage Therapy

• Teeth Whitening

• Over-the-counter drugs (unless a prescription is provided)

Ineligible Expenses

• Eligible dependents include your spouse and any children up to the age of 26

• Your election must continue for the full plan year unless you have a qualified event for a change of status

• Marriage, birth, death, divorce, etc.

• Annual election is available upfront

• Consider pairing the FSA benefit with medical plans that offer a lower premium and higher out of pocket deductible

Medical FSA: Things to Consider

Day Care Facilities

Preschool

Before and After School Care

Day Camps

Baby-sitter (neighbor, friend, family)

Adult Day Care

Eligible Dependent Care FSA Expenses

• Eligible dependents are your children under the age of 13

• Other dependents may qualify if they are a dependent on your tax return and incapable of self-care

• In order to be eligible, you and your spouse must both be working (or spouse must be going to school full-time)

• Funds are available as they are withheld

• Education expenses do not qualify

• Examples: summer school, private school tuition, Kumon, Japanese lessons.

Dependent Care FSA: Things to Consider

• Plan Year

• July 1st – June 30th

• This is the time period funds will be withheld. It is also when your expenses must be incurred.

• Run-out Period

• Last day to submit claims for prior year expenses

• 90 days after plan year ends (September 28th)

Important Plan Year Deadlines

When you use your NBS Card, the merchant code identifies the type of expense and allows you to use your card for eligible expenses.

Keep receipts if you use your card in case of an IRS audit or in case NBS needs more information to adjudicate your expense.

If you have a card from last year, you will use the same card in the new plan year.

Cards can be issued for spouses or dependents for no additional charge.

Use your NBS Card for FSA Medical Expenses

Participant self-service overview

▪ Check your balance

▪ Manage communications and alerts

▪ Access to education and planning tools

▪ Replace debit cards

▪ Submit claims

▪ Review your transaction history

Participant Portal:

my.nbsbenefits.com

Mobile applications▪ Supports Apple and Android

smartphones and tablets

▪ Shared username and password with [my.nbsbenefits.com]

▪ View account balances

▪ View transaction history

▪ Attach receipts

▪ Submit claims by taking pictures of your receipts

▪ Edit Alerts

▪ Contact Administrator

▪ Includes new virtual assistant “Emma”

Mobile Account Access

You can submit a claim form for reimbursement either online, through our mobile app, via fax, mail or email.

The easiest way to submit your claims is online at my.nbsbenefits.com or through our mobile app.

You can also elect to have your reimbursement deposited directly into your checking or savings account by enrolling in direct deposit.

Manual Claim Reimbursement

• Monthly fee is $6.00, whether you participate in one or both FSA’s (Dependent Care & Medical Reimbursement)

• The fee is deducted from your paycheck on a pre-tax basis ($3.00 per paycheck)

• Break even point is an annual election of about $240 (considering you will see a tax savings of about 30%)

• Tax savings and monthly fee work out to be about $72

Administration Fee

• Forms must be faxed, emailed, or postmarked no later than May 31st

• Send your forms directly to NBS

*Do not turn your form into your personnel office

• Forms can be sent by fax, email, or mail (details are provided on the enrollment)

• Visit www.nbsbenefits.com/cityofhonolulu for all OE information!

Open Enrollment:May 1st – May 31st

What is a Limited Purpose Flexible Spending Account? (LFSA)

How Can I Contact NBS?

• Our service center is available from 6am MST through 9pm MST

• Equivalent to 2am HST through 5pm HST

• Contact NBS directly:

- Local # (Oahu): 465-2284

- Toll-free #: (855)399-3035

- Email: service@nbsbenefits.com

• Walk-in visits: 1314 S King St., Suite 326

• City Flex Website: www.nbsbenefits.com/cityofhonolulu

Questions?