Savings and Spending Accounts
Health Savings Account (HSA)
The HSA is non-forfeitable and portable, meaning you take it with you when you leave AEP; however, your pre-tax contributions to the HSA stop after the pay period in which your employment with AEP ends.
You may continue to make after-tax deposits to your HSA up to the applicable limit, provided you remain eligible (for example, you are enrolled in and covered exclusively by a qualifying high-deductible health Plan).
You may:
- Keep your HSA open with HealthEquity and continue to withdraw funds as you see fit, including payment for current and future eligible expenses as defined by the IRS. Please note that monthly administrative fees may apply.
- Close your HSA and receive any remaining funds, which may be subject to tax penalties and an account closure fee.
- Transfer your HSA balance to a new administrator with no tax implications.
Flexible Spending Accounts (FSA)
AEP offers tax-advantaged spending accounts to help pay for out-of-pocket Medical, Dental, Vision, and Dependent Care expenses.
Health Care Flexible Spending Account (HCFSA)
Coverage ends on the last day of the month in which your employment with AEP ends. You may claim expenses incurred prior to your coverage end date up to the full annual election amount.
If you have an HCFSA debit card, it will be deactivated on your last day of employment. You may request reimbursement for eligible claim expenses incurred prior to your coverage end date up to the full annual election amount by completing a claim form and supplying documentation of the eligible expense. Any HCFSA balance for which claims have not been received by March 31 of next year may be forfeited.
Continuation of HCFSA participation under COBRA
You can continue to participate in the HCFSA through COBRA for the remainder of the calendar year in which your employment ends if you have not been reimbursed more than you have contributed up to your last day of employment. If you have contributions left in your account, COBRA allows you to continue contributions on an after-tax basis until the end of the current Plan year. If you elect COBRA, you will be able to submit claims incurred after your coverage end date through the end of the current Plan year.
You will receive a notification letter and election form that explain your rights and the options available to you. You may submit claims incurred during the remainder of the Plan year by completing an online claim or requesting a paper claim form and submitting the proper documentation for the eligible expense. The debit card option is not available through COBRA continuation.
Dependent Care Flexible Spending Account (DCFSA)
Coverage ends on the last day of the month in which your employment with AEP ended. You cannot contribute to the spending account after the pay period in which you ended your employment; however, you may continue to file claims for reimbursement of eligible expenses incurred during the remainder of the Plan year up to the total of the balance in the account. Any balance for which claims have not been received by the vendor by March 31 of the following year will be forfeited.
Retiree Reimbursement Account (RRA)
If you were enrolled in the HRA Plan as an active employee immediately prior to retiring, and you were age 65 or older when you retired from AEP, you may be eligible for an RRA.
If you have unused Health Reimbursement Account (HRA) dollars 90 days after your HRA Plan coverage ends, any funds remaining in your HRA will be automatically converted to an RRA administered by Inspira. You will receive a welcome letter from Inspira with more details. You can also refer to your Summary Plan Description available on aepbenefits.com or by calling the AEP Benefits Center at 1-888-237-2363 (Option 1 or 2).
This guide covers the benefits of retirees who are age 55 or older and who have ten or more years of credited service with AEP as of their last day of employment. If you are under age 55 with ten years of credited service as of your last day of employment, please refer to the guide “Leaving AEP: A Guide for Ending Employment.” If you were a part-time employee, please note that the following Plans or programs referenced in this guide are not applicable: Life Insurance, Dependent Life Insurance, Accidental Death & Dismemberment (AD&D) Insurance, the Long-term Disability (LTD) Plan, personal days off, educational assistance, adoption assistance, the educational awards program, and SIRVA Mortgage Services.
This guide is not intended to be a Plan document, Summary Plan Description, or required notice with respect to any of the Plans mentioned. AEP reserves the right to modify, amend, suspend, or terminate the Plans at any time. Refer to the applicable Plan document if you have any questions relating to a specific Plan or benefit.