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17 <br />FLEXIBLE COMPENSATION PLAN <br />The County provides a Section 125 Flexible Compensation Plan administered by Tucker <br />Administrators, with a plan year from December 1 to November 30 of the following year. This <br />Plan consists of a) tax sheltering. of health and dental premiums and b) two Flexible Spending <br />Accounts (a medical-spending account and dependent/child care spending account). <br />The Spending Accounts enable employees. to contribute money on apre-tax basis to a separate <br />account. Employees_ and the County save money because no income or Social Security taxes <br />are deducted from contributions made to the Flexible Spending Account(s)-. Employees may <br />contribute- a maximum of $3,000 to the Medical Spending Account and up to $5,000 to the <br />Dependent/Child Care Spending-Account each plan year. <br />P-anticipation nearly doubled since 2008, due #o the addition of a pre-paid debit card for the <br />Medical Spending Account-in 2008, ability to enroll during the Plan Year, and more-emphasis <br />during Open Enrollment. <br />Number of Participating Employees Per Year <br />Type of Account 2008 2009 2010 2011 <br />Child Care <br />Spending 12 12 12 10 <br />Account <br />Medical Spending <br /> <br />Account 95 138 178 2i4 <br />'`fncludes employees enrolling during Plan Year <br />Health Care Reform <br />Effective January 1, 2011, the Patient Protection and Affordable Care Act impacted all medical <br />spending accounts by requiring prescriptions for over-the-counter medications. Effective <br />January 1, 2013, the maximum annual allowable contribution will be capped at $2,500. <br />No Social Security or Medicare taxes are paid on the amounts employees contribute to either <br />Medical or Dependent Care Spending Accounts. In 2011, the County is expected to save <br />approximately $20,000 in taxes because of employee contributions. <br />No other plan design changes are s-uggested for 2012 for the Flexible Compensation Plan as a <br />result of Health Care Reform. <br />Potential Changes for 2011-12 Plan Year <br />Federal tax regulations prohibit employees from participating in both a Flexible Spending <br />Account and a Health Savings Account at the same time. Currently, the Plan Year for Flexible <br />A-15 <br />