The FlexElect Program allows eligible employees to manage certain benefits such as cash options, health premiums, and dependent care deductions on a pre-tax basis. It provides flexibility in how employees handle their compensation and benefit choices. However, when an employee approaches retirement, it’s important to understand how FlexElect participation will be affected. Retirement changes an employee’s pay and benefits status, which may alter eligibility for certain FlexElect options or require specific administrative actions before the retirement date.
Being proactive about managing your FlexElect benefits prior to retirement ensures a smoother transition and helps avoid loss of funds or benefit interruptions.
What Happens to FlexElect Upon Retirement
When an employee retires while fax lists enrolled in FlexElect, their participation in the program generally ends with the last pay period in which they receive earnings. Since FlexElect deductions are taken from active payroll, retirees are no longer eligible to contribute to or receive certain benefits such as pre-tax dependent care or health care reimbursement accounts.
However, employees enrolled in FlexElect Cash Options may be eligible for prorated payments if they retire mid-year, depending on institutional or state policy. Any unused funds in reimbursement accounts typically must be used for eligible expenses incurred before the retirement date, and claims should be submitted within the designated filing period after retirement.
Retirees should also review other post-employment benefit options, such as retiree health coverage, to ensure continuous medical and financial protection after FlexElect participation ends.
Steps to Take Before Retiring
Employees enrolled in FlexElect who plan to retire should take the following steps:
Notify HR Early: Inform your human resources or benefits office of your intended retirement date well in advance.
Review FlexElect Options: Check how retirement will affect your current cash options or reimbursement accounts.
Submit Claims Promptly: File any outstanding claims before the program’s deadline.
Consult Benefits Staff: Seek guidance on transitioning to retiree benefits and understand final payout rules.
Retiring while enrolled in FlexElect requires careful planning and timely communication. Since FlexElect participation ends upon retirement, understanding your options and deadlines helps prevent forfeiture of funds or benefits. By reviewing your account, submitting all claims, and coordinating with HR, you can ensure a smooth transition from active employment to retirement while maintaining financial and benefit stability.
