News Release

WASHINGTON - On November 13, Kay Coles James, Director of the U.S. Office of Personnel Management (OPM), and Colleen Kelley, President of the National Treasury Employees Union (NTEU), held a joint Flexible Spending Account enrollment session to promote the Federal Flexible Spending Account program to Internal Revenue Service employees, who are NTEU members, and to all Federal employees.

"FSAs are yet another example of the Bush Administration's commitment to ensuring that Americans, Federal employees in this case, are able to keep more of their hard-earned money, recognizing that they know best how to use it. FSAs give each health-care consumer greater buying power and control over his or her health-care dollars," James said. "This is yet another win for Federal employees."

Flexible Spending Accounts (FSAs) are employee-funded accounts that can be tapped by account holders to pay for medical expenses that are tax deductible, but not reimbursed by any other source, as well as dependent care costs. Contributions to the accounts come from an employee's pre-taxed salary; the government does not make a contribution.

"I want to thank Colleen and the members of NTEU for their support of FSAs for Federal workers. Used wisely, flexible spending accounts are effective financial management tools that can stretch the disposable incomes of account holders and ensure that funds are available, when needed, to pay for out-of-pocket medical expenses or the dependent care costs of a child or parent," added James. "I am confident that Federal employees will benefit from participation in the FSA program, and they, in turn, can be sure that their accounts are being professionally managed by a company experienced with participant reimbursement accounts."

"I applaud OPM and Director James for their leadership in making this important benefit available to federal workers," President Kelley said. "I believe it will be an important tool in the government's continuing efforts to recruit and retain the high-quality employees that are so critical to the delivery of services to the American people."

"Fundamentally, Federal employees -- like all educated consumers -- are in the best position to determine how health-care dollars should be spent for themselves and their families," said James. "FSAs empower them to do so."

For more information on FSAs contact Chad Cowan in the OPM Office of Communications at 202-606-2402.

OPM oversees the federal work force and provides the American public with up-to-date employment information. OPM also supports U.S. agencies with personnel services and policy leadership including staffing tools, guidance on labor-management relations and programs to improve work force performance.

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