Hawaii Administrative Rules › Title 14 - DEPARTMENT OF HUMAN RESOURCES DEVELOPMENT › Subtitle 5 - STATE OF HAWAII CAFETERIA PLAN › Chapter 52 - FLEXIBLE SPENDING ACCOUNTS PLAN › Subchapter 1 - PURPOSE AND DEFINITIONS › Section 14-52-2 - Definitions

Current through June, 2024
As used in this chapter, unless a different meaning clearly
					 appears in the context:
"COBRA" means the Consolidated Omnibus Budget
					 Reconciliation Act of 1985, Pub, Law 99-272, as amended,
"Code" means the Internal Revenue Code of 1986, as amended,
					 and the regulations promulgated thereunder,
"Compensation" means wages, salaries, tips, other payments,
					 and other earnings of a participant includible as gross income for the taxable
					 year, "Compensation reduction agreement" means the voluntary written agreement
					 between an eligible employee and the State in which the eligible employee
					 agrees to reduce the employee's pre-tax compensation to obtain the benefits
					 offered under the plan.
"Dependent" means any individual who qualifies as a
					 dependent under section 152 of the Code (as modified under section 105(b) of
					 the Code), "Director" means the director of the State of Hawaii department of
					 human resources development, "Elected benefits" means the medical expense
					 reimbursement spending account or dependent care expense reimbursement spending
					 account, or both, selected by the participant.
"Eligible employee" means a person who is an employee
					 of;
(1) The state executive branch; or
(2) A jurisdiction that is approved by the director to
					 participate in the plan; and who is eligible to participate in the State of
					 Hawaii employees' retirement system.
"Eligible medical expenses" means those expenses incurred
					 by the participant, the participant's spouse or dependents, or the
					 participant's child (as defined in section 152(f)(1) of the Code) who as of the
					 end of the taxable year has not attained age twenty-seven, for qualifying
					 medical, dental, drug, and vision services allowable under section 213 of the
					 Code (without regard to the limitations contained in section 213(a) of the
					 Code) and as allowed under section 105 of the Code and the rulings and United
					 States Department of the Treasury regulations thereunder; provided that this
					 shall not include an expense incurred:
(1) For the payment of premiums under a health insurance
					 plan or for the purpose of cosmetic surgery as defined by section 213(d) of the
					 Code;
(2) By the participant as a deduction in determining the
					 participant's tax liability under the Code; or
(3) For qualified long-term care services as defined in
					 section 7702B(c) of the Code.
''Employer'' means the State of Hawaii,
"Employment-related dependent care expenses'" means the
					 amounts paid for expenses of a participant for those services that, if paid by
					 the participant, would be considered employment-related expenses under section
					 21(b)(2) of the Code. The term generally includes expenses for household
					 services and for the care of a qualifying dependent, to the extent that the
					 expenses are incurred to enable the participant and the participant's spouse to
					 be gainfully employed or to actively search for gainful employment for any
					 period for which there are one or more qualifying dependents with respect to
					 the participant. Employment-related dependent care expenses are treated as
					 having been incurred when the participant's qualifying dependents are provided
					 with the dependent care that gives rise to the employment-related dependent
					 care expenses, not when the participant is formally billed or charged for, or
					 pays for the dependent care. The determination of whether an amount qualifies
					 as an employment-related dependent care expense shall be made subject to the
					 following rules :
(1) If the amounts are paid for expenses incurred outside
					 the participant's household, they shall constitute employment-related dependent
					 care expenses only if incurred for a qualifying dependent;
(2) If the expense is incurred outside the participant's
					 home at a facility that provides care for a fee, payment, or grant for more
					 than six individuals who do not regularly reside at the facility, the facility
					 must comply with all applicable state and local laws and regulations, including
					 licensing requirements, if any; and
(3) Employment-related dependent care expenses of a
					 participant shall not include amounts incurred by and paid to a child who is
					 under the age of nineteen, a dependent, or the spouse of a participant.
"Enrollment period'* means the period of time designated by
					 the State prior to the beginning of the plan year in which eligible employees
					 may participate in the plan by completing the compensation reduction
					 agreement.
"FMLA" means the Family and Medical Leave Act of 1993,
					 29 U.S.C. section
					 2601, as amended.
"Highly compensated individual" means any employee defined
					 as such in sections 105(h) and 414(q) of the Code.
"Jurisdiction" means a political subdivision of the State,
					 e.g., the executive branch, the department of education, the public charter
					 schools, the University of Hawaii, the Hawaii health systems corporation, the
					 Office of Hawaiian Affairs, the judiciary, the legislature.
''Key employee'' means any employee defined as such in
					 section 416(i) of the Code.
"Limited rollover" means, with respect to any plan year
					 beginning on or after July 1, 2021, an amount, not to exceed $550, remaining in
					 a participant's medical expense reimbursement spending account at the end of
					 the plan year, including the time allowed for processing claims pursuant to
					 section
					 14-52-60(b),
					 "Participant" means any eligible employee who participates in the plan in
					 accordance with this chapter and section
					 78-30,
					 HRS.
"Plan" means the State of Hawaii flexible spending accounts
					 plan that includes the medical expense reimbursement spending account and the
					 dependent care expense reimbursement spending account described in this
					 chapter.
"Plan administrator" means the director, as provided for in
					 section
					 14-52-10.
"Plan year" means each twelve-month period commencing on
					 July 1 and ending on the following June 30.
"Qualified caregiver'* means an individual who provides
					 employment-related dependent care services and is not: a dependent of the
					 participant; the participant's spouse; or a child of the participant who is
					 under age nineteen at the close of the calendar year in which the services are
					 rendered.
"Qualified day care center*' means a day care center that
					 provides full-time or part-time care for more than six individuals (other than
					 individuals who reside at the day care center) on a regular basis during the
					 participant's taxable year; receives a fee, grant, or payment for providing
					 these services to any individual; and complies with all applicable state and
					 local laws.
"Qualifying dependent" means, for purposes of the dependent
					 care expense reimbursement spending account, a:
(1) Dependent of the participant, as defined in section
					 152(a)(1) of the Code, who is under the age of thirteen;
(2) Dependent, as defined in section 152 of the Code
					 determined without regard to subsections (b)(1), (b)(2), and (d)(1)(B), or
					 spouse of the participant who is physically or mentally incapable of caring for
					 oneself and has the same principal place of residence as the participant for
					 more than one-half of the taxable year; or
(3) Child who is deemed to be a qualifying dependent
					 described in paragraph (1) or (2), whichever is appropriate, pursuant to
					 section 21(e)(5) of the Code.
"Spouse" means an individual who is legally married to a
					 participant; provided that this shall not include an individual legally
					 separated from a participant under a decree of legal separation.
"State" means the State of Hawaii.
"Third-party administrator" means the outside party
					 contracted by the director to perform the day-to-day operations of the
					 plan.
"USERRA" means the Uniformed Services Employment and
					 Reemployment Rights Act of 1994,
					 38 U.S.C, section
					 4301, as amended.