The Kindness of Big Business: A Story

You're correct in your assessment of the "use it or lose it" rule - However, the employer (trustee of the plan), not the benefits administrator, is cut the "leftover $$" check at the end of the year. AND, the employer has rules to follow in spending the $$ - For example, they have to give it to charity or apply it to the expense they pay the benefits administrator. So, in the end, the employer does make out in a roundabout way (if they use it to pay the expense) but they can't just cash the check and walk away with the money in their pocket.

My personal opinion, as the one who handles HR at our company owned by my husband, is that employees are ultimately responsible if they lose any $$ - They know the rules from the beginning....