DataPath's programming staff is hard at work on an update to DPI-125 to accommodate the new § 125 Grace Period for FSAs. We plan to have a comprehensive solution to you on or before October 1.

This Ruling requires changes in many areas of the software. For instances, modifications need to be made in the following areas:

• Plan Documents
• Adoption Agreement
• Plan Design Screen
• Employer Setup Screen
• GCP (Global Claims Processor)
• Claims Entry Screen in the 125 system
• System-wide Database Changes

Here are just a few of the changes that will be made:

• Plan Year will be substituted for Plan End Date in the benefit plan year settings. This is necessary to indicate which Plan Year to charge expenses incurred during the Grace Period.
• For each FSA, the user will be able to select whether or not to apply a grace period and, if a grace period is applied, to set the (1) length of the Grace Period, (2) length of run-out, and (3) cap (fixed $ amount).
• New option for selecting whether or not Card Swipes will be eligible for the grace period.
• Creation of ability to maintain history of Plan Design records to determine what the settings are for any given time.

A few of you have been asking what you can do in the meantime for plan years ending prior to October 1. DataPath cannot support any custom workarounds that you attempt before we release the update. Any changes that you make outside the system are at your discretion and any resulting problems that require technical support could result in billable hours.