oriecat

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If you subtract 12x from each side, you would actually get -6 = 0, not 0x because 12x - 12x = 0

My recollection was that multiplication was always done first. If I hadn't already gotten rid of it, I would be ashamed to still have my high school senior math award.

A rollover of what? I'm confused.

Due to some serious financial issues, we are looking into eliminating our 401(k) match. (Current match is 50% of the first 3%, on a per payroll basis.) We know we will have to do a plan amendment and new SPD to everyone. I am hoping this will be temporary and I am wondering if there is any way we could amend the plan so that it will be easier to turn the match back on without having to amend the plan again. I read some old posts about discretionary match and it seems to be that you have to elect what the match is each plan year, so that could be one option, but I am wondering if there are any other options for ways to achieve this. Thank you.

I think my assumption was wrong, based on question 26 here, and the change would be immediate. http://www.bakerdaniels.com/services/pract...yer-hcr-qa.aspx

Thank you! That is an important consideration, as we have 3 medical plans, one of which is considered grandfathered right now, since we made no changes at our last renewal. If the grandfathered status is lost, would that take effect immediately or at the next plan renewal? I assume plan renewal, but then that seems a little weird as employers could effectively play the system by making material changes right after renewal which then don't affect their status until the next time. Also, has there been any more guidance on if the 60 day notice is required yet?

Is there anything in ERISA, Sec 125, PPACA, or anything else, that would prevent a plan sponsor from changing their contribution structure, and therefore the employee paid premium, in mid plan year?

Couldn't you say that the irrevocability rule would only apply in the case of an employee having made an election, which would then be irrevocable, but in these cases the election was not made/not processed, in which case you are not actually changing an election.

Another important note is that you have to go by the postmark date, so you can't term someone if it was in the mail. 26CFR54.4980B-8 Q-5 (e) Payment is considered made on the date on which it is sent to the plan.

I don't know if I agree with this. I don't have any cites, and I don't have time to dig into it, but I think the benefit portion of insurance premiums is a separate issue from COBRA. If I charge employees $80 a month for their coverage, I can charge them the full price plus 2% for COBRA. I don't think that changes if I decide to only charge them $60 a month. Unless you want to say that the "benefit plan" for the discount is also subject to COBRA, and then I would say, then you can charge them the full price plus 2%, so then technically they are paying for their own discount. Just my opinion and I could be totally wrong.

So when you say that these 3 employees are leased to XYZCP, does that mean they are actually employed and receive paychecks from XYZ? If so, then I don't see a problem.

And if you do have to provide a tax return, I don't see any reason why all of the dollar figures couldn't be blacked out and so you are just showing the SSNs of the dependents. They don't need to see income or taxes paid, so hide that info.

Agree with above. This person is already on COBRA, they don't need to have a new qualifying event. They are changing what plan options they want to enroll in at open enrollment. They have the same open enrollment rights as your other employees.

My understanding, based on the 1.125-3 regulations for FMLA leaves is that pre-payments cannot cross plan years, but payments in arrears can. There is no stated limited.

I believe a change in employment status would only allow a change if there was a loss of eligibility. Since this person continued to file claims, it sounds like they remained eligible.

An employee's spouse's employer is not renewing their FSA plan for 2011 because they will be closing (and I assume don't want to deal with any losses due to uniform coverage). Our plan year is not on calendar year, so he did not sign up with ours last month. Would this be a qualifying event for him to add coverage under our plan? When I ran it through ChangeofStatus.com it said no, but that doesn't seem right to me, so I wanted to verify. Thank you.

Turns out this was a small employer, so it wasn't COBRA but state continuation.

I kinda had that thought too, but this just happened and the subsidy eligibility ended in May, so that didn't make much sense to me. But I suppose they could be months behind in updating their COBRA forms.

It has always been my understanding that becoming covered by another group plan can end COBRA early, but being eligible for another group plan does not mean you cannot sign up for COBRA. An employee's son was recently reduced in hours and received his COBRA notice. It says on there that to be eligible to elect COBRA, you cannot be eligible for another plan, including a parent's plan. Did I understand this wrong, are they wrong, or did something change with PPACA and the age extension for dependents? Note, I haven't actually seen the form, but this is how it was explained to me. Thank you.

Was this person on FMLA? The 1.125-3 regs would apply. http://www.indstate.edu/humres/docs/Section125-3.pdf

That sounds indescribably horrible. I hope your ears are ok!

Would this just apply as a group, or also on an individual level? Like if you just have one HCI who had a special deal on their premiums, would that make it discriminatory, or as long as they don't sway the full percentage too much it might be ok? I hope that made sense.

Maybe I haven't had enough coffee yet, but where is the math wrong?

I'm not sure where it is in the Code or the CFR, but in plain language it is in IRS Publication 15-B http://www.irs.gov/publications/p15b/ar02....blink1000193641