oriecat

This is more of a labor/wage and hour question than benefits. If you speak spanish, I assume the answers can be found here http://www.dtrh.gobierno.pr/

If you're collecting the premiums with pre-tax dollars, you best have some sort of Section 125 plan in place, even if just a POP. And it's Ms Cat.

1.125-4(f)(3)(ii) ii. Addition (or elimination) of benefit package option providing similar coverage. If during a period of coverage a plan adds a new benefit package option or other coverage option (or eliminates an existing benefit package option or other coverage option) the cafeteria plan may permit affected employees to elect the newly-added option (or elect another option if an option has been eliminated) prospectively on a pre-tax basis and make corresponding election changes with respect to other benefit package options providing similar coverage.

No, that is not a COBRA qualifying event.

54.4980B-7 Question 2 Q-2: When may a plan terminate a qualified beneficiary's COBRA continuation coverage due to coverage under another group health plan? A-2: (a) If a qualified beneficiary first becomes covered under another group health plan (including for this purpose any group health plan of a governmental employer or employee organization) after the date on which COBRA continuation coverage is elected for the qualified beneficiary and the other coverage satisfies the requirements of paragraphs (b), ©, and (d) of this Q&A-2, then the plan may terminate the qualified beneficiary's COBRA continuation coverage upon the date on which the qualified beneficiary first becomes covered under the other group health plan (even if the other coverage is less valuable to the qualified beneficiary). By contrast, if a qualified beneficiary first becomes covered under another group health plan on or before the date on which COBRA continuation coverage is elected, then the other coverage cannot be a basis for terminating the qualified beneficiary's COBRA continuation coverage. (b) The requirement of this paragraph (b) is satisfied if the qualified beneficiary is actually covered, rather than merely eligible to be covered, under the other group health plan. © The requirement of this paragraph © is satisfied if the other group health plan is a plan that is not maintained by the employer or employee organization that maintains the plan under which COBRA continuation coverage must otherwise be made available. (d) The requirement of this paragraph (d) is satisfied if the other group health plan does not contain any exclusion or limitation with respect to any preexisting condition of the qualified beneficiary (other than such an exclusion or limitation that does not apply to, or is satisfied by, the qualified beneficiary by reason of the provisions in section 9801 (relating to limitations on preexisting condition exclusion periods in group health plans)). (e) The rules of this Q&A-2 are illustrated by the following examples: Example 1. (i) Employer X maintains a group health plan subject to COBRA. C is an employee covered under the plan. C is also covered under a group health plan maintained by Employer Y, the employer of C 's spouse. C terminates employment (for reasons other than gross misconduct), and the termination of employment causes C to lose coverage under X 's plan (and, thus, is a qualifying event). C elects to receive COBRA continuation coverage under X 's plan. (ii) Under these facts, X 's plan cannot terminate C 's COBRA continuation coverage on the basis of C 's coverage under Y 's plan. Example 2. (i) Employer W maintains a group health plan subject to COBRA. D is an employee covered under the plan. D terminates employment (for reasons other than gross misconduct), and the termination of employment causes D to lose coverage under W 's plan (and, thus, is a qualifying event). D elects to receive COBRA continuation coverage under W 's plan. Later D becomes employed by Employer V and is covered under V 's group health plan. D 's coverage under V 's plan is not subject to any exclusion or limitation with respect to any preexisting condition of D. (ii) Under these facts, W can terminate D 's COBRA continuation coverage on the date D becomes covered under V 's plan. Example 3. (i) The facts are the same as in Example 2, except that D becomes employed by V and becomes covered under V 's group health plan before D elects COBRA continuation coverage under W 's plan. (ii) Because the termination of employment is a qualifying event, D must be offered COBRA continuation coverage under W 's plan, and W is not permitted to terminate D 's COBRA continuation coverage on account of D 's coverage under V 's plan because D first became covered under V 's plan before COBRA continuation coverage was elected for D.

I think I would agree. I don't believe are any special rules on this relating to FSA's, it's just a health plan and falls under the COBRA regs, so if it can be denied for the insurance, I don't see why it couldn't be denied for the FSA.

How long should copies of old plan documents, carrier contracts, correspondence to employees about plan/premium changes, FSA enrollment forms be kept? I really need to clean out my office and I hope I can get rid of some of this old stuff.

How many hours did they have last year? When you say " the plan requires the employee be there the last day of the plan year", do you mean it requires them to be active or just employed? If they were on FMLA leave they are still employed.

Does anyone know the IRS position on the use of pretax benefits for ferry rides? The code clearly shows ferries as an allowed form of mass transit, but it isn't clear (at least to me) whether that only means riding the ferry as a passenger, or whether that can include car and driver tolls. I've had a couple people tell me that car tolls cannot be included, but to me the code isn't specifically clear about that and no one has any backup to support their position, other than saying that the code has to be for "mass transit", and I fail to see how if you can take the same ferry and either walk on or drive on, it is mass transit for one but not the other. Thank you!

You can have one plan document that covers the premiums and the FSA, as they are both Section 125 benefits. It does not need to be redone every 12 months, only when changes are required. Who administers your FSA? Generally I would think that your TPA would have provided the plan document for you.

Seems like that would just be failure to meet eligibility requirements for coverage. You can't cover someone who isn't eligible, and if documentation of eligibility is required and they failed to provide it, then they would not be eligible and should be removed. Or so it seems to me.

Agreed. Wouldn't the plan require a qualifying event to add coverage at this point?

Yes, you cannot get the subsidy unless you complete that form. So if someone didn't want it, because they don't qualify, then they wouldn't complete it.

Why would they need to waive it? Wouldn't they just send in their election form and not send in the AEI form?

You would also need to check your plan docs to make sure they can remain on the plan if they are not active and not on COBRA.

Agree.

That's why you would add the spenddown provision to your plan.

Well there is a lot of risk and reward on both sides in flex plans. Why was this person even deferring already if they didn't have someone in daycare yet?

There is an optional "spend down provision" that allows DCAP monies to be reimbursed after termination, however it is optional so their plan probably does not have it. I would ask for a copy of the document though just to be sure.

COBRA does not apply to Dependent Care, as it is not a group health plan.

http://www.irs.gov/formspubs/article/0,,id=169996,00.html This might only be informational, I didn't look at it that clearly. You might need to call the IRS http://www.irs.gov/pub/irs-prior/f1099r--2006.pdf

But if you are making contributions to the HSA, wouldn't you want them pre-tax also? And you couldn't do that through a POP, could you?

Yes, it is very nice that they cleared up that problem. They must have seen us talking about it.

COBRA subsidy extension complete. http://www.dol.gov/ebsa/newsroom/2009/ebsa122109.html

Coffee.