WARNING: FSA (Flexible Spending Account) perhaps a top level post on real concerns for RIFees.
As explained by UC in 2006 the FSA behaves like an insurance policy. If you chose a $5000 limit that translates to a $192.31/paycheck 'premium'. The 'policy' is canceled upon your termination i.e. Jan 10,2008. If you had no medical expenses Jan.1 through Jan. 10 you lose the 'premium' you will pay on Jan. 4, 2008. On the other hand if the stress sends you to the hospital on Jan. 9 with $5000 out-of-pocket expense then you will be reimbursed the full $5000.
Note you have until Nov.30, 2007 to select the FSA option in open enrollment.
Perhaps somebody from LANL benefits can verify this since they are monitoring this blog.