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Benefits

Brown Flex Dependent Care Assistance Plan (DCAP)

DEFINITION

The Dependent Care Assistance Plan, offered under the Brown University Flex Plan, allows you to set aside a part of your salary on a pre-tax basis to pay for out-of-pocket dependent care expenses which allow you and your spouse to work, or your spouse to seek work or to study as a full-time student.

For the current plan year (1/1/2007 - 12/31/2007) or upon initial eligibility, you may elect a minimum of $240 for eligible expenses incurred by your eligible dependents during year 2007.

ELIGIBILITY

Regular faculty, staff, and members of the Public Safety bargaining unit who work 50+% time (based on academic year), and SEIU bargaining unit members who work 25+ hours/week are eligible to participate in the Dependent Care Assistance Plan under the Brown University Flex Plan.

In order to claim DCAP expenses for your child or disabled dependent, she or he must be claimed as a dependent on your federal income tax return* (or be prevented from doing so only because she or he earned more income than the exemption amount or, in the case of a spouse, is filing a joint return). Additionally, child dependents under DCAP must be under age 13. Older dependents, including a spouse, child or parent, must be physically and/or mentally unable to care for themselves (as certified in writing by a licensed physician).

* Certain exceptions may apply for children of divorced or separated parents; you may wish to review IRS Publication 503 or consult with your tax advisor for additional information.

WHAT IS COVERED?

Dependent care may be provided:

  • In your home, if the care is not provided by someone you claim as a dependent;
  • Outside your home, provided there is no overnight stay by your dependent child; or
  • Outside your home, for a dependent age 13 or older who is physically and mentally incapable of self-care (as certified in writing by a licensed physician) and who spends at least eight hours/day in your home

Covered expenses must be incurred during the plan year on or after your date of eligibility. Under IRS regulations, expenses are incurred when the service is provided, not when your bill is paid. There are certain expenses which are specifically not covered. A few examples are: overnight camp, housekeeping services, and after-school instructional or enrichment classes/courses

MINIMUM / MAXIMUM ALLOWABLE CONTRIBUTION

You may elect to set aside a minimum of $240 per plan year. Your maximum allowable contribution may be the smallest of the following:

  • $5,000 if married and filing your income tax jointly with your spouse or if single; or $2,500 if married and filing your income tax separately from your spouse; or

  • Your taxable compensation minus all pre-tax salary reductions, including DCAP; or

  • The actual or projected income of your spouse (a spouse who is a student or mentally/physically incapable of self-care is projected to earn $200 per month for one dependent or $400 per month for two or more dependents).

Brown will divide your total annual contribution amount and deduct it equally among the number of regular paychecks that you are normally scheduled to receive.

HOW TO GET REIMBURSED

You may submit claim forms for eligible expenses incurred in calendar year 2007 throughout calendar year 2007 up until April 15, 2008 to:

Altus Benefit Administrators
PO Box 1643
Providence, RI 02901-1643
Fax: 401-457-7266

"USE IT OR LOSE IT"

You should budget your expenses carefully because, under IRS rules, Brown cannot refund the amount that remains in your Brown Flex account at the end of the reimbursement period. If 2007 funds are not claimed prior to April 15, 2008, you will lose the unspent funds that you set aside.

CHANGING YOUR ELECTION

You may increase or decrease your election under the Dependent Care Assistance Plan during the course of the plan year only if you have a change in family status. In this case, a change in family status is defined as marriage, divorce, birth or adoption of a child, death of a spouse, commencement or termination of employee or spouse's employment, or a change from full-time to part-time or from part-time to full-time employment by the employee or his or her spouse.

Requests for a change in total annual contribution amount due to a change in family status, along with supporting documentation, must be submitted in writing to the Benefits Office within 31 days of the occurrence of the change.

SPECIAL NOTE: In accordance with Federal Tax Guidelines, this plan is subject to a non-discrimination test that may reduce the maximum amount of compensation that a highly compensated employee may set aside. If this affects you, the Benefits Office will notify you as soon as possible after the plan year begins.

 

QUESTIONS

To obtain more information, call Altus Benefit Administrators at 1-800-371-7542.

This summary is for informational purposes only and does not constitute a legal contract. In cases where disputes occur, the Plan Document will be the ruling and binding instrument.