I’m faced with a moral dilemma. I’m due to elect my benefits for 2009 by next week. Even though my job is being discontinued at the end of this year, my benefits coverage extends at least a few months into 2009, and longer if I so choose. One of the options I have when making my elections is to have a Flexible Spending card. To my understanding, what this does is allows me to purchase medications and use for medical procedures like a credit card, and then the bill is gradually deducted from my paychecks throughout the year. I was recently made aware of a very big loophole in the terms of the flex card, and I’m not sure whether or not I’ll be acting on it.
Because the deductions are taking from each paycheck to recover the money spent on the card, if an employee is terminated their paychecks will cease and the deductions will have nowhere to pull money from. The loophole is, because the money is deducted automatically, if the employee is no longer active, they can no longer automatically deduct the money, and they can’t do anything about it. This has been repeatedly confirmed by fellow employees with the flex account helpdesk – they will not come after you for whatever you’ve spent which hasn’t been deducted at the time of your termination. Thus my dilemma.
I know my approximate term date in advance. I have the ability to put a substantial amount of money on the flex card and finally get the Lasik eye surgery I’ve been thinking about for so long, and essentially not have to pay for it. I’ll have a few deductions while I’m on my severance period, but once that time is up I’m free and owe no more. I’ve been assured numerous times by varied sources that they have no way to demand the money at a later date, and take it as a loss.
So I’m up against a wall at this point, unsure of what to do. One part of me states that if the loophole is there, there’s nothing wrong with taking advantage of it. I’m sure the company is aware of it at this point, and if it were necessary they’d take care of it. This is the part that says “go for it” and wants to get the Lasik. The other part of me says that it’d be wrong to do this and get off without having to pay very much for an expensive procedure that the company will still have to cover. This is the part of me that says “you know better” and seems to think glasses are still cool.
I see both sides with equal clarity (despite the glasses). I just can’t decide what I’m going to do. But whatever I’m going to decide, I need to do it quickly. I have exactly one week to choose my benefits and request a flex spending card. *sigh* What am I going to do?
[EDIT - 10/28/08 - The time has come and gone, and I chose not to take advantage of the loophole to my benefit. I passed the opportunity up and decided that if I am going to do this, I'll do it right someday. Situation resolved.]
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Well Dean….. I am going through the same…. All the while in a Ethics in Management class! lol To be honest, you know what I am going to do. My thoughts are we have been working hard at what we do, we’ve paved the way for many things and have helped this organization in many ways. Look how we’ve been treated and the lack of other compensation is huge. My situation is a bit different because I am using the money toward neccessary dental work and work for the kids that have been put off because of costs. Look at what crap we go through with this company – the ups and downs and not being valued as an employee (Don’t get me wrong – there are some amazing managers here that do show their appreciation). How many “unethical things” have they done to us and others? They have let thousands of people go, but yet try to buy other institutions and spend money in “re-branding” their name. “Do unto others as you would have them do unto you”. Maybe I am wrong, but I don’t feel bad and hadn’t thought twice about not doing the flex spending. I have had eye surgery and it was on of the best things that I have done for myself. I say go for it!
i say go for it. at this point you are still an employee of your company and are required to elect benefits. You do not know what can happen between now and then.
If I was in your place, I would not. Not because of the loophole, but because I don’t trust Lasik yet. I don’t trust my eyes to someone else yet. I value my sight too much to have anyone mess with it, even though I do wear glasses and contacts, I just don’t think I could do it. However its not me who has this choice. So its up to you…
I do not believe in giving in to the philosophy of taking advantage of a loophole even when it involves taking from someone that I fell really owes me.
I remember when I had some money that I was to casual about were I left it and a so called friend took it.
Another time I had my senior ring and my fathers senior ring in my bathroom and I had a few friends over and the rings disappeared. A year or so later I was talking to a friend and told him about that night, he was not there the night the rings were stolen, and he told me about getting drunk one night with the person who took these items. The statement from the thief was that they were really hard up and Kelsey had money, a job, etc…..
Integrity is determined by what you do when you are sure no one is watching and that no one will know you did it.
Unethical – not morally correct.
Moral – concerned with the principles of right and wrong behavior and the goodness or badness of human character.
On another note, I would not put to much faith in the idea that they can not come after you for the money that you used. Just because it is a loophole does not make them the one holding the bag.
Great blog, thank you.
I have always lived by the statement Kelsey made above, you are what you do when no one is looking. You are free to make you own choice but remember – what goes around comes around. You are building a past that will follow you into the future.
If you have to ask, you already know the answer. Remember to follow the moral Will of God. You don’t have to ask, “Gee God, is it ok for me to steal this money?” He has already answered the question. Remember one thing on the FSA – you have to request the payment in the same year as the procedure and all of it has to be verified with detailed documentation for the IRS. Another thing to consider, this procedure will not be permanent. When you reach forty, your eyes will start to change and you will possibly need glasses again. When I went to the eye doctor a few months ago, he told me the surgery would help me see far without glasses, but I would need ‘reading glasses’ for seeing up close. Since I spend so much time on the computer, it really doesn’t help me. Have you seen an eye doctor to even determine if you are a candidate? Those are my two cents.