The FMCP℠ offers a Special Fund program. Under this program, participating employers contribute specified amounts per hour of work into a Special Fund Account in the individual employee’s name. The amounts that accumulate in this account can then be used by the employee for certain specified expenses that are not otherwise covered by the Plan. You are entitled to this benefit if your employer is required to contribute to the Special Fund Account Program on your behalf.
Contributions to your account and the reimbursements paid from it will not be considered taxable income to you. Your Special Fund Account can save you substantial amounts of money by allowing you to cover a wide range of expenses with untaxed income rather than after-tax income. You should understand that tax law and regulations, as well as interpretations, change from time to time and you should contact your tax advisor concerning the taxation of Special Fund reimbursements.
Your account balance can be carried forward from year to year – even after you retire. There is no "use it or lose it" rule, except as follows: An account with a balance less than $100.00 that has had no hourly contributions or withdrawals for two calendar years (four years for balances of $100.00 or more) will be closed and the balance transferred back to the Fund. Your Special Fund Account is not a savings account from which you can withdraw at will. You are not vested in the balance.
You cannot make self-payments into your Special Fund Account. If you make self-payments under the Plan’s regular eligibility or COBRA rules, no part of that self-payment will be credited to your Special Fund Account.
For a list of what your Special Account Fund can be used for
click here.