On March 11, 2021, President Biden signed the American Rescue Plan Act of 2021. The Act increases the Dependent Care Spending Account (DCSA) maximum contribution limits for the 2021 plan year. The new contribution limits are below.

As allowed by the COVID-19 Relief Bill, if you participate in a DCSA in 2021, you can continue to incur expenses through December 31, 2022, and submit claims for reimbursement using your 2021 funds by March 31, 2023. You will forfeit 2021 funds left in your account after the reimbursement deadline.

You may make prospective changes to your DCSA without a qualifying change in status in 2021. To make a change, you should complete an Active Notice of Election (NOE) form and return it to your benefits administrator. Indicate “COVID” at the top of the NOE as the change reason. Your change will be effective the first of the month following PEBA receiving a completed NOE, and the change will affect your contributions going forward. You must submit an NOE by November 30, 2021.

View the COVID-19 summary for FSAs in 2021 document for more details about the increase and other changes allowed by the COVID-19 Relief Bill.

If you have questions about the changes, please contact your benefits administrator.