Master Agreement Between the Government of the Province of Alberta and the Alberta Union of Provincial Employees
LETTER OF UNDERSTANDING # 6HEALTH SPENDING ACCOUNT
BETWEEN:
THE CROWN IN RIGHT OF ALBERTA(The Employer)
- and -
THE ALBERTA UNION OF PROVINCIAL EMPLOYEES(The Union)
Effective April 1, 2019 a sum of $900 shall be allocated by the Employer to the eligible Employee’s Health Spending Account (HSA). Eligible Employees who commence employment after April 1 shall be entitled to claim HSA expenses from their date of commencement.
2.
The HSA year is from April 1 to March 31. Any unused allocation in an Employee's HSA at the end of the HSA year will be carried forward to the next HSA year. The unused allocation cannot be carried forward beyond one (1) HSA year. Any unused funds after the second year are forfeited back to the Employer in accordance with the Income Tax Act. Outstanding expenses which exceed the annual HSA allocation shall not be carried forward to the next HSA year.
(a)
Any unused allocation in an Employee’s Health Spending Account as of March 31, 2020 may be carried forward for a maximum of one (1) fiscal year, however must remain as a Health Spending Account.
3.
The HSA may be utilized by Employees for the purpose of receiving reimbursement for health and dental expenses that are eligible medical expenses in accordance with the Income Tax Act.
4.
If the Employer contracts with a service provider for the administration of the HSA, the administration of the HSA shall be subject to and governed by the terms and conditions of the applicable contract for services.
5.
The HSA shall be implemented and administered in accordance with the Income Tax Act and all applicable regulations and guidelines.
6.
Effective March 31, 2020, the Employer will broaden the current Health Spending Account (HSA) to a Flexible Spending Account (FSA) as described below.
A FSA shall be implemented for all Employees eligible for the current HSA.
The Employer shall allocate a sum of nine hundred dollars ($900.00) per eligible Employee to a FSA effective April 1st of each year, beginning April 1, 2020. Eligible Employees who commence employment after April 1, 2020 shall be entitled to claim FSA expenses from their date of commencement.
Utilization
The FSA may be used for the following purposes:
Reimbursement for expenses associated with professional development including:
tuition costs or course registration fees;
(ii)
travel costs associated with course attendance;
(iii)
professional journals;
(iv)
books or publications; and
(v)
software.
(b)
Reimbursement for the cost of professional registration or voluntary association fees related to the Employee’s discipline.
(c)
Reimbursement for health and dental expenses that are eligible medical expenses in accordance with the Income Tax Act and are not covered by the benefit plans.
(d)
Contribution to a self-directed Registered Retirement Savings Plan or Tax Free Savings Account.
(e)
Wellness expenses, include fitness and sports activities but exclude fitness and sports equipment and apparel.
(f)
Family care including day care and elder care.
Allocation
An allocation date will be determined in conjunction with the benefit provider. By that date each year, Employees who are eligible for the FSA will make an allocation for utilization of their FSA for the subsequent fiscal year. If an Employee chooses to split allocations between taxable and non-taxable accounts, there shall be a minimum allocation of $100 to either account.
Any unused allocation in an Employee’s FSA as of March 31st of each year may be carried forward for a maximum of one (1) fiscal year.
Employees who are laid off or abolished after April 1st in the year in which the funds are available, shall maintain access to the fund for two months following the date of the layoff or abolishment.
Eligible expenses will be reimbursed upon submission of required claim information.
Implementation
Where the Employer is the administrator of the account, it shall determine the terms and conditions governing the FSA. A copy of these terms and conditions shall be provided to the Union.
Where the Employer chooses to contract with an insurer for the administration of the FSA, the administration of the Account shall be subject to and governed by the terms and conditions of the applicable contract.
The FSA shall be implemented and administered in accordance with the Income Tax Act and applicable Regulations in effect at the time of implementation and during the course of operation of the FSA.
Dated this 27th day of Janaury 2022.