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<p class="MsoNormal"><a name="_Hlk153891391"></a><span style="mso-bookmark:_Hlk153891391"><span style="mso-ligatures:none"><img width="159" height="60" id="_x0000_i1025" src="cid:image001.jpg@01DA6E48.BE788100"></span></span></p>
<p class="MsoNormal"><span style="mso-bookmark:_Hlk153891391"><span style="font-size:6.0pt;line-height:105%;font-family:"Arial",sans-serif"><o:p> </o:p></span></span></p>
<p class="MsoNormal"><span style="mso-bookmark:_Hlk153891391"><span style="font-family:"Arial",sans-serif">March 4, 2024<o:p></o:p></span></span></p>
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<span style="mso-bookmark:_Hlk153891391"><span style="font-family:"Arial",sans-serif">To:<o:p></o:p></span></span></p>
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<span style="mso-bookmark:_Hlk153891391"><span style="font-family:"Arial",sans-serif">Department Benefits Representatives<o:p></o:p></span></span></p>
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<span style="mso-bookmark:_Hlk153891391"><span style="font-family:"Arial",sans-serif">From:<o:p></o:p></span></span></p>
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<span style="mso-bookmark:_Hlk153891391"><span style="font-family:"Arial",sans-serif">Central HR Benefits Office on behalf of the UC Office of the President<o:p></o:p></span></span></p>
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<span style="mso-bookmark:_Hlk153891391"><span style="font-family:"Arial",sans-serif">Re:<o:p></o:p></span></span></p>
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<p class="MsoNormal"><span style="mso-bookmark:_Hlk153891391"><b><span style="line-height:105%;font-family:"Arial",sans-serif;color:black">DepCare - FSA Plan: 2024 Pre-Taxable Contributions Change for highly-compensated employees </span></b><b><span style="color:#1A475F"><o:p></o:p></span></b></span></p>
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<span style="mso-bookmark:_Hlk153891391"><b><span style="font-size:6.0pt;font-family:"Arial",sans-serif"><o:p> </o:p></span></b></span></p>
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<span style="mso-bookmark:_Hlk153891391"><b><span style="font-family:"Arial",sans-serif">DBRs, please share this information via your internal listserv.<o:p></o:p></span></b></span></p>
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<p class="MsoNormal"><span style="line-height:105%;font-family:"Arial",sans-serif">UC Office of the President was informed of certain participants in the Dependent Care FSA (DepCare) who will receive communications this week regarding contributions to the plan.<o:p></o:p></span></p>
<p class="Default"><span style="font-size:11.0pt;font-family:"Arial",sans-serif;color:windowtext">DepCare Flexible Spending Account (FSA) plans are highly regulated by the Internal Revenue Service (IRS) to ensure the tax benefits offered are equitable to all
participants. This includes a requirement for non-discrimination testing to confirm the DepCare FSA plan does not favor highly-compensated employees (defined by the IRS as those earning $150,000 or more in 2023) and is providing comparable benefits to all
participants. <o:p></o:p></span></p>
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<b><span style="font-family:"Arial",sans-serif"><o:p> </o:p></span></b></p>
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height:normal">
<b><span style="font-family:"Arial",sans-serif">2024 plan year contribution adjustments<o:p></o:p></span></b></p>
<p class="Default"><span style="font-size:11.0pt;font-family:"Arial",sans-serif;color:windowtext"><o:p> </o:p></span></p>
<p class="Default"><span style="font-size:11.0pt;font-family:"Arial",sans-serif;color:windowtext">Based on recent non-discrimination testing results for the University of California’s plan, highly-compensated employees
<span style="letter-spacing:-.25pt">must have the 2024 DepCare FSA benefit capped at an annual maximum of $3,000 i</span>n order to comply with IRS regulations<span style="letter-spacing:-.25pt">. If necessary, DepCare deductions for highly-compensated employees
will be reduced beginning with the March 13, 2024 paycheck for bi-weekly paid employees and the April 1, 2024 paycheck for monthly-paid employees.<o:p></o:p></span></span></p>
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<span style="font-family:"Arial",sans-serif"><o:p> </o:p></span></p>
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<b><span style="font-family:"Arial",sans-serif">Communications<o:p></o:p></span></b></p>
<p class="Default"><span style="font-size:11.0pt;font-family:"Arial",sans-serif;color:windowtext"><o:p> </o:p></span></p>
<p class="Default"><span style="font-size:11.0pt;font-family:"Arial",sans-serif;color:windowtext">Targeted emails will be sent to affected employees. Additionally, UCPath will send a copy of the letter via U.S. mail.<o:p></o:p></span></p>
<p class="Default"><span style="font-size:11.0pt;font-family:"Arial",sans-serif;color:windowtext"><o:p> </o:p></span></p>
<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height:normal">
<span style="font-family:"Arial",sans-serif">Affected employees may contact the UCPath Center with questions.
</span><span style="font-family:"Arial",sans-serif">Please use the <u><a href="https://hr.ucr.edu/document/ucpath-notice-depcare-reminder-2024">UCPath phone system and case initiation paths</a></u><span style="color:#2E75B6">
</span>to help ensure a timely response to inquiries.</span><span style="font-size:9.0pt;font-family:"Georgia",serif;color:#1F4E79;mso-ligatures:none"><o:p></o:p></span></p>
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