Mid Year Changes in a Cafeteria Plan

[Guest kerryb]

In the case of an employee losing benefit eligibility mid plan year and then regaining eligibility later in the plan year, can we offer the employee the ability to make completely new elections at the time when they re-gain benefit eligibility - in particular for health and/or dependent care flexible spending/reimbursement accounts. This scenario assumes the employee choosing to continue participation under COBRA while ineligible (or does COBRA participation affect possible re-election?)

Thanks ...

[SLuskin]

You need to see how your plan document addresses rehires. If the rehire happens within 30 days, the employee moves back into her previous election. Otherwise, there are several choices, but your document must specify.