USPS Announces Termination of FSAFEDS Accounts for 2025 Plan Year, Provides New Enrollment Option for Affected Employees

January 17, 2025

On Dec. 30, 2024, the Postal Service notified the APWU that it is informing employees who enrolled in the FSAFEDS Flexible Spending Account (FSA) for plan year 2025 that their accounts will be terminated. FSAFEDS is no longer the FSA administrator for the Postal Service. Instead, Inspira Financial will be the Postal Service’s FSA administrator for the 2025 plan year.

On Dec. 30, 2024, the Postal Service notified the APWU that it is informing employees who enrolled in the FSAFEDS Flexible Spending Account (FSA) for plan year 2025 that their accounts will be terminated. FSAFEDS is no longer the FSA administrator for the Postal Service. Instead, Inspira Financial will be the Postal Service’s FSA administrator for the 2025 plan year.

Employees who enrolled in FSAFEDS for 2025 will have the option to enroll in the Inspira Financial FSA. For those who choose to enroll, it will be processed as a late action with an effective date of Jan. 1, 2025. However, an employees’ plan year amount will be deducted by fewer pay periods, which will cause their deduction amount to be slightly higher than their initial enrollment election per pay period.

The Postal Service will include a new enrollment form and contact number for Inspira Financial in a mailing to employees whose accounts have been terminated. This enrollment termination only affects those who enrolled in the FSAFEDS plan. Modifications will be permitted through Jan. 31, 2025.

For any questions, please ask for a union steward or contact your local union representative.

USPS Announces Termination of FSAFEDS Accounts for 2025 Plan Year, Provides New Enrollment Option for Affected Employees0

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