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Answers are provided by Robyn Morris of R. C. Morris, Incorporated
Differing levels of benefits to different classes of employees
(Posted January 12, 1998)
|Question 55: Currently employees working 30 or more hours per week are entitled to participate in our 125 plan. They are given a dollar amount to purchase their choice of insurance. We are considering expanding this benefit to employees working 20 or more hours per week. Can we offer different dollar amounts for those who are working less hours? Can we have medical and dental plan options that are available only to employees working less hours?
Answer: Yes, you may offer a different benefit credit amount to employees in a "part-time" class. Yes, you may offer INSURED products to the population you choose. If your company is SELF-INSURED, you will have some discrimination testing requirements to meet.
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