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Transportation Benefits


Guest ehs

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As a TPA we operate mass transit and parking accounts on a 12-month period that usually coincides with the clients Section 125 plan year, for simplicity sake. We allow employees to make monthly elections (prospectively). Since there is technically no plan year for a Transportation plan, we have for administration purposes followed a rule that if an employee does not make an election in new plan year, the prior months election is not assumed to roll, and any funds from the prior year are forfeited. Even if the participant makes a future month election, the intermittent month (where an election was not made) causes the forfeiture. The regulations are not very clear in this area, most of the discussion addresses termination (as an example) but not breaks in coverage as it relates to forfeitures. We looked to the "green book" for some form of guidance and that is even a little vague. Should we approach it differently and view funds being forfeited only if the person terminates? Should we assume the election rolls from month to month, including plan year to plan year until a new election is made? What about intermittent elections? HELP???

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