Important News for Members With Dependent Care Spending Accounts

SEIU helped L.A. County employees win a new benefit to fund their Dependent Care Spending Accounts, a popular program to assist members with child and elder-care costs. Starting this year, the county made tax-free contributions to the spending accounts—up to $5 million county-wide for Options participants. Members can also make tax-free contributions to their spending accounts.

The County will meet its $5-million cap in May 2008 for Options participants. This means that the County’s contribution for May 2008 will be approximately 85% of the full contribution, or around $300 for members making less than $30,000. The May contribution will be reflected in your May 15th paycheck after which there will no longer be any County contribution.

Please note that Choices participants in Local 721 Social Worker Units will not be affected by this action since the Choices $3 million cap should last through the calendar year due to lower enrollment in the Dependent Care County contribution program.

You can increase your own contribution to their Dependent Care Spending Account if you wish—as much as $5,000 annually or $400 per month, depending on your filing status. That could mean major tax savings on qualifying expenses. Options participants will be notified by mail that May will be the last month they will receive the County dependent care contribution—and receive information about how to raise their contributions or start spending accounts.

 For more information about Dependent Care Spending Accounts, click here!