Annual Enrollment Changes

[Guest irash]

Each spouse has different AE periods at their respective employers. Would an election under the later AE qualify as an event to allow the 2003 elections made during the first AE to be dropped? For example, if the later turns out to have better benefits and the couple decides that it would benefit them to be enrolled under the AE of the later plan. Thanks!

:confused:

[papogi]

125-4 allows this. As long as the 125 plan in question adopts this situation as a status change (plan docs may or may not, although most would), then this change to the Cafeteria Plan election would be allowed. Understand that you now have to contend with the provisions of the underlying health plan, as Section 125 does not override that. In your case, OE allows them on the "new" plan, but you want to drop coverage on the "old" plan. The underlying plan should also allow this if it has a provision stating that coverage ceases at the time the employee ceases to pay for coverage. Double check the wording of both the health plan and the 125 plan, but, chances are this is allowed.