Change in Status/Qualifying Event

[French]

We offer our benefit plans to full and part-time employees who work 20+ hours/week. (Note that the premiums are slightly higher for a part-time employee). A current employee enrolled in our pre-tax vision plan wants to drop it due to her choosing to reduce her hours from 40 to 29. I believe that is not a qualifying event (FT to PT) since she is still benefits eligible. Am I wrong in my interpretation of the Section 125 rules? Can someone direct me to a the specific reg which may address this issue? Thanks.

[papogi]

No change is allowed, and your interpretation is correct. As for a cite, 125-4©(2)(iii). It specifically mentions that eligibility must be affected.

[mroberts]

I agree with papogi, unless the increase in cost is going to be significant. Based on your email, however, you indicated the difference in cost was slight and most vision plans are very inexpensive. Therefore, a significant increase doesn't seem likely.

[French]

Thanks to both of you and I especially appreciate the specific section of the regs for proof of my understanding. Apparently our employee not only wanted to drop vision but also dental and medical. The only plan with any significant change in cost is medical.