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Showing results for tags 'Section 125 Qualifying Event'.
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Employee is in a full-time, benefits eligible position, employer pays 80% of cost of coverage (separate medical, dental & vision plans) for Ee-only or Ee plus dependents (spouse and/or children). Ee changes to a Part-Time variable hour position mid-year. Not expected to work 30+ hours on average after change. Ee compensation rate is unchanged, but hours are significantly reduced. As a PT Ee, the Ee is eligible for same medical plans but no dental or vision coverage if enough hours are worked. Employer pays 80% of Ee coverage, but $0 toward dependent (minors only, no spouse) coverage. Employer offers benefits to variable hour employees who work 30+ hours on average over 12 month look-back period. Ee, as a long-time full-time Ee is in month 1 of a stability period. 1) Because of the employment status change, has Ee experienced a 125 qualifying event? 2) If yes, what changes is the Ee permitted to make? Does status change only apply to dependents due to increased cost or can Ee drop coverage as well? 3) Does the "Special Rule" apply to this situation that would allow the Employer to begin monthly look-back after 3 months in order to allow the Ee to drop coverage? Thoughts and comments appreciated. P.S. - The employee does not want to continue coverage.
