United States 

Office of 

Personnel Management 

The Federal Government’s Human Resources Agency

Benefits Administration Letter 

 Number: 07- 202 Date: April 6, 2007

Subject: Federal Employees Health Benefits (FEHB) Program: Pre-Tax Health 

Savings Account Allotments for Federal Employees

Starting in 2007, Federal employees who are enrolled in High Deductible Health Plans (HDHP) 

are now able, based on the schedule below, to make pre-tax allotments to Health Savings 

Accounts (HSAs) through The Federal Flexible Benefits Plan (FEDFLEX). The Office of 

Personnel Management has worked with payroll providers and employee self service systems to 

provide this service. By January 1, 2008, all eligible employees will be able to make these 

allotments to their HSAs. Employees will be able to establish pre-tax allotments, depending upon 

their payroll provider, on the following schedule: 

Payroll Provider Effective Date___

Bonneville Power Authority September 2, 2007

Defense Finance and Accounting Service September 2, 2007 

Department of State October 1, 2007 

Department of Veterans Affairs September 28, 2007 

General Services Administration April 27, 2007 

Mid-Atlantic Regional Finance Office January 1, 2008 

Milk Market Administration Georgia October 1, 2007 

Milk Market Administration Kansas October 1, 2007 

Milk Market Administration Kentucky October 1, 2007 

Milk Market Administration Minnesota October 1, 2007 

Milk Market Administration New York October 1, 2007 

Milk Market Administration Ohio October 1, 2007 

Milk Market Administration Texas October 1, 2007 

Milk Market Administration Washington October 1, 2007 

Military Sealift Command (Navy Civilians) January 1, 2008 

National Aeronautics and Space Administration December 14, 2007 

National Business Center December 14, 2007 

National Finance Center October 1, 2007 

National Science Foundation December 14, 2007 

National Security Agency September 2, 2007

Updated July 20, 2007
After the payroll provider has set up its system of pre-tax HSA allotments, employees serviced by 

that provider may establish pre-tax HSA allotments using the same method that they would use to 

establish other allotments (i.e., Employee Express, MyPay, etc.). If your agency uses a payroll 

self-service system, it will provide additional instructions to employees regarding establishing, 

altering or canceling allotments. 

Unlike Flexible Spending Account allotments, employees who elect HSA allotments may modify 

their allotments at any time so long as the change is prospective and in accordance with the 

administrative procedures established by the payroll provider. The HSA allotment election will 

continue until the employee modifies or revokes that allotment election. 

Internal Revenue Service limits apply to the amounts that can be set aside each year in HSAs. The 

2007 HSA maximum contribution limit is $2,850 for single coverage or $5,650 for a family 

coverage. Individuals who are 55 or older may make an additional catch-up contribution of $800 

in 2007. FEHB enrollees in HDHPs should be aware that the premium pass-through amounts that 

they receive from their health plan count toward the IRS limits. For more information regarding 

pass-through amounts and contribution limits enrollees can visit 

http://www.opm.gov/hsa/HSA_NetAmounts.pdf. 

Employees are responsible for ensuring their enrollment and contributions are in accordance with 

IRS rules. Neither payroll providers nor self service system providers will verify employee 

eligibility or check to ensure employee contributions are within annual limits. 

 

Please work with your employees to ensure that they are aware of this additional savings 

opportunity. Additional information on HDHPs is available on the OPM webpage at 

www.opm.gov/hsa. 

 Sincerely, 

Robert F. Danbeck 

Associate Director 

for Human Resources Products and Services 

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