Cafeteria Plans

[Guest TML]

An Employee has changed status from full-time to part-time. They are no longer allowed to participate in the insurance nor the cafeteria plan. How does this effect the annual election? Is the participant only entitled to what they have put in the plan as of the new part-time date? exa: annual election was for $3000 as of the change to part-time they have only contributed $1,000. What is the participant entitled to? Thanks for the help!

[papogi]

The uniform reimbursement rule still applies. While they are no longer participating in the health care FSA (I gathered this was the benefit you were speaking of), they still have access to their full year's election as long as the dates of service are before the termination date. The individual may have flex COBRA rights, as well, depending on other factors.

[Mary C]

Papogi is right, but I think the "termination" date he is referring to is termination of participation in the FSA plan, not termination of employment since the employee is still with you, but only on a part time basis.

[Guest TML]

Thank you!