FLEXIBLE SPENDING ACCOUNT
OPEN ENROLLMENT FOR THE 2006 CALENDAR YEAR
BEGINS NOVEMBER 7, 2005 AND ENDS DECEMBER 1, 2005

Don't miss this opportunity to take advantage of a unique benefit that permits you to have pre-tax dollars deducted from your paycheck and set aside for one or both of the Flexible Spending Accounts (FSA): Medical Care Spending Accounts and Dependent Care Spending Accounts. You never pay state, city or federal income taxes, FICA or Medicare on the money you contribute to your FSA.

Participation in the Medical Care Spending Account enables you to pay for your family’s medical care expenses such as doctor visit co-pays, dental and medically needed orthodontia co-pays, prescription co-pays, health insurance deductibles, vision expenses not covered by insurance, and some over-the-counter drugs. The entire amount that you have elected to be deducted may be used as soon as the plan year begins, even before all the deductions are taken from your pay.

Dependent Care Spending Accounts can be used to pay for childcare expenses while you and/or your spouse are at work, looking for work, or are at school; for local day camp; and for care expenses for your incapacitated dependent at any age. To be reimbursed for dependent care expenses, the amount cannot exceed the current balance of your account.

Fringe Benefits Management Company (FBMC) offers you the EZ REIMBURSE® card that you can use like a debit card for many of your reimbursable medical care expenses. It allows you to pay prescription drug co-pays at a participating pharmacy, at your doctor's office, dentist's office, or other health care provider if they accept Mastercard. The provider is paid directly out of your medical care spending account. Anyone who wishes to use the EZ REIMBURSE® card will need to send an order form to FBMC by December 2, even if they had a card during 2005.

It is important that you carefully plan your anticipated medical and dependent care costs. Any balance remaining in your account after the deadline for submitting reimbursement claims will be forfeited in accordance with IRS regulations. However, the IRS has instituted a new "grace period" which allows participants until March 15th of the following calendar year to incur eligible expenses. The 2006 Plan Booklet on the Employee Benefits website has details about this new grace period.

Beginning January 1, 2006, you can access your account by entering your employee ID. Your social security number is not necessary. The new website address is http://www.myfbmc.com/michigan. All enrollments must be entered in your MI HR Self-Service account at www.michigan.gov/selfserv. If you have any questions, do not have access to the Internet, or need assistance enrolling, please contact the MI HR Service Center at 877-766-6447 (toll free), TDD 517-241-8046, or fax 517-241-5892. The MI HR Service Center is available Monday through Friday from 7:00 a.m. to 6:00 p.m., except holidays.

Please note: Anyone who wishes to participate in 2006 must enroll during the current open enrollment period, even if you are participating this year. Please visit the Department of Civil Service website at www.michigan.gov/mdcs, Employee Benefits, Flexible Spending, for additional information.