WageWorks Tax-Advantaged Spending Accounts

Annual Service Review

City of Los Angeles

9.7.17Joint-Labor Management Benefits Committee

About WageWorks

• We have managed the City’s Health and Dependent Care Flexible

Spending Accounts and Commuter Benefits since 2008

• We serve approximately 6.5M participants and 100,000 clients including

the Cities of Chicago, Philadelphia, New York, and Los Angeles County

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Healthcare FSA Eligible Expenses

Use Your FSA to pay for:• Prescriptions for almost any medical condition

• Prescribed over-the-counter medicines, e.g. aspirin, cough syrup

• Co-payments, co-insurance, and deductibles

• Dental care, both preventive and restorative

• Orthodontia, child and adult

• Vision care, eyeglasses, contact lenses, solutions

• Eye surgery, including laser vision correction

• Counseling and therapy

• Psychology and psychiatry

• Chiropractic care and acupuncture

• See www.wageworks.com/myfsa for more

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2013-16 Health Care FSA Highlights

• 24% Participation Growth

• $970,000 in Cumulative Employer FICA Savings

• $3.8M in Cumulative Employee Tax Savings*

• $440 in Annual Tax Savings per Participant*

1,936

2,016

2,275

2,398

0 500 1,000 1,500 2,000 2,500 3,000

2013

2014

2015

2016

Participants

Year

Number of HCFSA participants in 2013-2016

4*Estimated 30% Tax Savings

Use the WageWorks Card to pay instantly

• Works like a debit card

• Funds come directly from your Healthcare FSA

• No PIN required

5

Dependent Care FSA Eligible Expenses

The Dependent Care FSA pays for:

• Before/after school care

• Au pair services

• Extended day programs

• Preschool/nursery school

• Summer day camp

• Elder day care

Ineligible expenses include:

• Overnight camps

• Kindergarten or higher-grade tuition

• Non-work-related day care

• Long-term elder care services

See www.wageworks.com/mydcfsa for more information on eligible expenses

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2013-16 Dependent Care FSA Highlights

• 15% Participation Growth

• $743,000 in Cumulative Employer FICA Savings

• $2.9M in Cumulative Employee Tax Savings*

• $1,150 in Annual Tax Savings per Participant*

591

581

681

677

520 540 560 580 600 620 640 660 680 700

2013

2014

2015

2016

Participants

Year

Number of DCFSA participants in 2013-2016

7*Estimated 30% Tax Savings

• Near your work

• Near a place from which you

commute to work via mass transit

• Employer-Owned Parking

• Buses

• Trains

• Subways

• Ferries

• Streetcars

• Vanpool

• Select Ride Sharing

Commuter Plan Eligible Expenses

Parking Transit

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Commuter Plan Highlights

• 65% Participation Growth for Commuter Plan

• $239,000 in Cumulative Employer FICA Savings

• $936,000 in Cumulative Employee Tax Savings*

• $460 in Annual Tax Savings per Participant*

387

487

546

638

0 100 200 300 400 500 600 700

2013

2014

2015

2016

Participants

Year

Number of Commuter participants in 2013-2016

9*Estimated 30% Tax Savings

WageWorks Solutions – Providing Access

WageWorks EZ Receipts®

• File a claim and get reimbursed quickly

• View transactions and benefit account balances using a single login

• Snap a photo of receipts and submit them for payment

• Receive confirmation emails when claims are received, processed, or paid

• Receive text messages when card verification is required, a transaction is denied, or a claim has been processed

Or online at WageWorks.com

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Innovations

Mobile App Enhancements

• Optional push notifications – including:

o New Card Transaction Needs Receipt.

o Card Transactions Need Receipt (Monthly Reminder)

o Claims Deadline Approaching.

o Claim was Processed.

o Claim was Paid.

o Monthly Commuter Order Deadline is Approaching.

Improved Access to Benefit Information for Participants

• New Claims & Activity Search by Process Date.

Planned Enhancements for 2018

• Text messages updated to include Stop and Help instructions in every text.

• Participants will now be able to go through the forgot username and password options directly on the app.

• Participants will now be able to register for their online account directly on the app.

• A new custom message area to be added to the beginning of each online claims path which will be editable via the employer website.

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Thank you.

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