Colby's health plan and flexible spending accounts (FSAs) are maintained under IRS rules governing "cafeteria" plans. In order to achieve the tax savings offered under cafeteria plans (see "Tax Benefits" employees must make irrevocable elections for each Plan Year. Employees must be offered the opportunity to make their annual elections during an Annual Enrollment Period.

Colby's Plan Year is January 1- December 31 each year. For the 2006 Plan Year, the Annual Enrollment Period is November 2 through November 23, 2005. Elections made during this period will become effective January 1, 2006.

Under the cafeteria plan, an "election" would include the following:

Electing HMO or Comp-Care health insurance coverage, or the opt-out election

Electing individual or dependent coverage under either health insurance plan

Electing to participate in the Medical Reimbursement FSA.

Electing to participate in the Dependent Care Assistance FSA.

Generally, elections may not be changed during the plan year, except in limited circumstances.  Changes are only permitted in the event that: a) the employee experiences a change in status, and b) the new election is consistent with the change in status. "Changes in status" summarizes some of the events that would support an employee making a new, mid-year benefit election.

Please note that while changes are permitted in the Health Plan and Dependent Care Assistance FSA, changes are not permitted under the Medical Reimbursement FSA during the year. This means that if:

you do not elect to participate in the Medical Reimbursement Account for 2006 by November 23, 2005, you may not elect to participate during the year.

you elect to participate in the Medical Reimbursement Account for 2006, you may not increase, decrease, or stop your participation during the year.

For the January 1 - December 31, 2006 year, benefit elections are due by 4:30 p.m. on Wednesday, November 23, 2005. Examples of Changes in Status