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State to raise PEB CBA FSA employer contribution to $300 and expand eligibility thresholds
Summary
Staff said eligible represented PEBB employees will receive a $300 employer contribution to flexible spending accounts in January 2026 (up from $250) and the salary threshold for eligibility will increase from $60,000 to $68,004 (measured 11/01/2025). Staff described carryover rules and Navia debit-card delivery for non‑enrollers.
Kelsey Pelle, senior account manager for flexible spending arrangements and dependent-care benefits, presented changes to the PEB collective-bargaining (CBA) FSA employer contribution that take effect Jan. 1, 2026. She said the salary threshold for eligibility will increase to $68,004 (pay as of 11/01/2025) and the employer contribution will increase to $300. "So eligible represented PEPB employees subscribers will receive now a 300 FSA amount in January," Pelle said.
Pelle explained operational details: funds are loaded to a Navia debit card for recipients who do not actively enroll, Navia administers the accounts, and carryover rules allow a $660 carryover to be available in January 2026 for plan-year 2025 balances. Staff noted eligibility also requires not being enrolled in a high-deductible health plan and that the Office of Financial Management determines certain union and salary thresholds under RCW guidance. Board members urged better outreach and translated materials; staff said communications are being developed in Spanish and Tigrinya for affected employers and that carryover rules were chosen to give more time for education and use of the seeded funds.
