Retirement Savings Plan loan limits are increased

Maximum retirement savings plan loan limits are increased from $50,000 or 50% of vested account balances to $75,000 or 75% of the vested account balance for loans made within 180 days of enactment of the CARES Act on March 27, 2020.

• During this time, participants may take up to 7 plan loans.
• Participants who choose to take a loan are asked to self-certify that they meet the requirements for a coronavirus-related loan. The loan approval process remains the same as it does for non-coronavirus-related loans. 
• Participants who have existing retirement plan loan payments may be able to defer payments for one year and extend the term of their loan by one year.

Suspension of required minimum distributions (RMDs) from the Princeton University Retirement and Savings Plans

To help provide relief for those required to take RMDs, the CARES Act allows participants to cancel their 2020 RMD payments and restart them in 2021.

• Participants who already have an RMD payment scheduled for this year have the flexibility to cancel it, and TIAA will restart it automatically in 2021.
• Participants who have already started receiving their RMD this year have the option to repay it as a rollover. If checks have already been sent, participants have 60 days to roll over those funds into a plan that accepts rollovers or into an IRA. In past disaster scenarios, the IRS has extended that rollover period. TIAA will monitor regulatory activity and notify clients if an extension is granted in this context.
• Participants who have not set up their RMD this year: Based on the CARES Act, TIAA cannot set up new RMD payments. If participants still need the money, they can take a withdrawal. The quickest way to set that up is through the TIAA website; be sure to set up an Electronic Funds Transfer (EFT).  

Hardship provision update

In addition to the CARES Act changes, there was an update to 403(b) hardship distribution rules that deems a qualifying hardship to exist for “expenses and losses (including loss of income) incurred by the participant on account of a disaster declared by the Federal Emergency Management Agency (FEMA), provided that the participant's principal residence or principal place of employment at the time of the disaster was located in an area designated by FEMA for individual assistance with respect to the disaster.” To date, FEMA has designated certain areas within the country as eligible for “counseling,” but not individual assistance. Therefore, at present, the COVID-19 crisis does not qualify under this new provision.

Participants can speak to a financial consultant, request a loan, or learn more about these provisions by logging in to their online account at TIAA.org or calling TIAA at (800) 842-2776. We recommend reviewing all options prior to making a decision.

Faculty and staff who are diagnosed with COVID-19 can apply for short term disability benefits by completing a newly created form that simplifies and expedites the review and approval process.

The University arranged for the following interim changes for employees enrolled in a Princeton medical plan. 

• Diagnostic testing and any provider visits associated with COVID-19 testing are covered at 100%.
• Telemedicine visits through Teladoc for any reason have been expanded to be covered at 100% for all medical plans.

Both Aetna and UnitedHealthcare have teams of experts monitoring COVID-19 to support members’ needs. For information and resources, go to their websites or call Aetna (800) 535-6689 or UnitedHealthcare at (877) 609-2273.

UnitedHealthcare has an Emotional Support Help Line, available to anyone who may be experiencing anxiety or stress. Call (866) 342-6892, 24 hours a day, seven days a week. Aetna has a crises response line for members at (833) 327-2386.

The University has arranged for general medicine visits through Teladoc to be covered at 100% for individuals enrolled in the Princeton CDHP and J-1 Visa Plans through December 31, 2021. The visits were already covered at 100% for Princeton PHP and HMO participants.

Teladoc also provides mental health and dermatology services for employees and their dependents enrolled in a Princeton medical plan. Mental health visits are covered at the same cost as in-network in-person primary care physician visits, and dermatology visits are covered at the same cost as in-network in-person specialist visits.

Due to a significant increase in visits to Teladoc, members are experiencing longer than usual wait times. To assist Teladoc in serving the high demand, it is best to take the following actions:

• In advance of the first visit, employees should set up their Teladoc account and share medical history on the app or account set-up page.
• For fastest support, Teladoc encourages members to make visit requests by mobile app or on Teladoc’s website rather than by phone. Members can download the Teladoc app on the App Store or Google Play.
• After a visit request is initiated, members are encouraged to be available and ready to promptly answer Teladoc’s callbacks.

Immediate action may be required for employees who have a recurring order for monthly transit vouchers or passes in place and are temporarily not commuting to work due to COVID-19. All orders or changes to orders must be placed by the 10^th of the month prior to the month in which employees need them. To cancel recurring monthly orders for expenses for the month of May or later:

1. Log onto PayFlex’s website
2. Go to Online Commuter
3. Select Manage my commuter account or select Place an order to access the Commuter Benefits Dashboard.

For more information or for questions on the ability to get refunded for orders placed in March or April, review the information on this webpage. The refund policies are developed by the transit authorities themselves, not PayFlex.

If participants’ childcare needs have changed due to COVID-19 related closures, this is considered a Qualified Status Event to make changes to the DFSA. Examples of situations that allow participants to make mid-year changes:

• If a childcare provider is closed or care is longer needed due to working from home, participants may reduce or suspend contributions.
• When childcare providers reopen and become available again, participants may increase or restart contributions.
• If a qualified dependent previously in school is now in need of qualified child care due to school closures, employees may enroll in the DFSA and current participants may increase their contributions. Participants may also reduce or suspend contributions when the child care is no longer necessary due to the reopening of schools.

To enroll in, increase, reduce, or suspend future DFSA elections, employees need to notify the Benefits Team at benefits@princeton.edu.

CARES Act Provisions for HFSA and HSA Programs

The Coronavirus Aid, Relief, and Economic Security (CARES) Act, signed into law on March 27, 2020, contains provisions that may help faculty and staff who are enrolled in the HFSA and HSA programs administered by PayFlex.

The following provisions are included in the CARES Act and are for expenses incurred on or after January 1, 2020:

• Over-the counter (OTC) drugs and medicines can be paid for or reimbursed through the HFSA and HSA without a doctor’s prescription.
• Feminine care products are now considered a qualified medical expense and are eligible for payment or reimbursement through the HFSA and HSA.

Important information for participants using their PayFlex debit card for newly eligible OTC and/or feminine care items:

It will take time for the debit card system to update. If the PayFlex debit card does not work at time of purchase, members can pay out of pocket and request reimbursement by submitting a claim to PayFlex. Note that updating the card system is not managed or controlled by PayFlex.

Deadline to File for Reimbursement for 2019 Expenses Extended

Due to COVID-19, the deadline to file for reimbursement for the 2019 HFSA has been extended by the IRS and does not begin until 60 days after the date the National Emergency is officially ended (this date is not yet determined). Once the National Emergency end date is announced, PayFlex will provide the new claim submission deadline date for 2019 HFSA expenses. Note that eligible expenses for 2019 must have been incurred from January 1, 2019, through December 31, 2019 – there is no extension of the spending deadline.

To submit claims to PayFlex:

1. Log in to PayFlex’s website
2. Under Your Accounts, select Dependent Care or Healthcare FSA
3. Select 1/1/2019 – 12/31/2019, to file a claim for reimbursement for your 2019 expenses

The COVID-19 Temporary Expansion of the ECCAP provides assistance to eligible faculty and staff members for the sole purpose of helping employees meet the cost of child care, Internet, computer and electronic equipment, or other related expenses necessary to support education at home from September 1 through December 31, 2020, for children up to age 13 as of September 1, 2020. The benefit amount paid is based upon family income and level of work effort provided to Princeton University during this period of time. Learn more.