What is a Lifestyle Spending Account?

An LSA is an innovative option available for business owners to empower their employees. This account enables you to offer a tangible bonus for lifestyle or wellness expenses to your employees.

Benefits of an LSA

The benefits of an LSA include receiving a Private Health Services Plan (PHSP) and extended coverage for items not covered on your current plan. Additionally, you will be creating a tax-deductible business expense for your company.

Why consider an LSA for your company?

With no initial setup fee and no monthly premiums, an LSA is a cost-effective way for employers to empower their employees. As the employer, you will have the option of setting up a range of employee classes with different spending limits.

Enrolled members are reimbursed for qualifying expenses and a 10% Adjudication Fee is charged on eligible claims (GST is charged on adjudication fee only). Plans are based on the calendar year and benefit levels can be prorated for the first year.

Frequently asked questions

How does an LSA work?

As a reimbursement plan, the LSA requires that the service or item be purchased up front by the member. The receipt is then submitted to Pacific Employee Benefits (PEB) along with a claim form identifying the covered service or product.

The policy holder (incorporated company) receives an invoice for the submission plus a 10% administration fee. The total amount is paid to PEB from the named company’s bank account. Once payment is received by PEB from the company, the claimed expenses are reimbursed to the plan member either by EFT or cheque. 

Does the plan member have to pay tax on the reimbursement? 

LSAs can be considered as a taxable benefit. The employee may be taxed on any money spent from this account.  

Do I have to send original documents in the mail? 

No. Copies of the paid invoices and claims form can be sent by email to service@pebplans.com. If you prefer to send the forms in manually our address is:  

Pacific Employee Benefits
Box 3249
3756 First Ave.
Smithers, B.C.
V0J 2N0 

What if I need help and would like to speak to a real person? 

Please call our office at (250) 847-2883, we would be happy to hear from you! Alternatively, call us toll-free at (877) 822 4209.

What is an allowable expense? 

Please see the below for a list of covered services and items.

The general categories are:  

Fitness (ski lessons, golf clubs, training fees, etc.)  
Wellness (horseback riding lessons, art classes, yoga retreat, etc.)
Professional/personal development (membership fees, course fees, books, etc.)