Washington, D.C. 20530

August 2, 2005

MEMORANDUM FOR BUREAU HUMAN RESOURCES OFFICERS

Attached is a copy of a memorandum signed by the Assistant Attorney General for Administration concerning the recent changes to the FSA program. Based on a decision of the Treasury Department and the Internal Revenue Service, and the Office of Personnel Management's guidance, the Department is implementing the following:

• Employees who are enrolled in FSAs will have up to 14 1/2 months to incur eligible expenses using their annual deductions. This change, in effect, permits employees to extend their annual plan year from December 31st to mid-March. This change pertains to both Health Care and Dependent Care FSAs.

Effective immediately, the Department is implementing the 14 1/2 months time period for its employees, starting with the current 2005 plan year.

If you or your staff need additional information or assistance, please contact Jamie Higgins, of my staff's Workforce Effectiveness Group. She may be reached on (202) 514-5781, or by electronic mail at Jamie.A.Higgins@usdoj.gov.

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