Revenue Ruling 2002-27 & Notice Requirement

[Guest crs]

In Revenue Ruling 2002-27, the IRS stated that cafeteria plans may use an automatic enrollment process provided employees receive a notice explaining the process, the cost of coverage, etc. The notice for current employees must also include a "description of the employee's existing coverage, if any." I interpret this requirement to mean that current employees' notices must be customized to set forth their prior election.

Is anyone using this notice, and if so, are you tailoring the notice for each current employee so the notice reflects his/her current election?

Any responses would be greatly appreciated!

crs

[papogi]

Yes. We have customized benefit statements which show last year's election, and indicates that they can leave everything as is, and current elections can rollover (less the FSA election).