Terminating Federal Health Insurance Accounts - (Rev. 5, 08-

120.2 - Terminating Federal Health Insurance Accounts - (Rev. 5, 08- 30-02) A1-1420.2, B1-4418.2 • Initial Adjustment to the Federal Health Insurance Time Account - Pending receipt of the prior month's bank statement, the contractor shall reduce on the first day of the phase-out period the current balance in the Federal Health Insurance Time Account by seventy-five percent (75%). It shall prepare a Time Account withdrawal slip that instructs the bank to immediately transfer the computed amount to the FHIBA. • Time Account Analysis - Within 7 days of the expiration of the current term, the contractor shall complete Schedule TAA in its entirety to determine whether the time account should remain open during the phase-out period. It shall include in line 4 the total projected service charges for the entire phase-out period. It shall modify the 25 percent figure on line 10 to reflect the actual length of the phase- out period, e.g., 6-month period would show 50 percent. o If line 13 of Schedule TAA (page 1 of 3) indicates a positive amount, the contractor shall maintain that amount of money in the time account during the phase-out period, and adjust the present time account balance accordingly in lines 14-16. o If line 9 of Schedule TAA (page 1 of 3) indicates a negative amount, the contractor shall immediately transfer the current time account balance to the benefits account, and the contractor should secure from the bank a check payable to the benefits account in an amount equal to the negative amount reflected on line 9. • Closing Federal Health Insurance Time Accounts - At the expiration of the phase- out period, the contractor shall transfer all funds on deposit in the Time Account, if applicable, and FHIBA immediately to the new FHIBA.