Military Duty and Cafeteria Plans

[Guest USCarolina]

For employees who are participating in a cafeteria plan that offers FSA accounts, how should these accounts be handle for employees that get called up during the Plan Year for active military duty?

Thanks for your suggestions.

[papogi]

USERRA says that employees on military leave are entitled to continue medical coverage (FSA included). This is supposed to be for no more than 18 months, but the provisions which allow for flex COBRA not to be offered past the year of the termination should also apply here, as well. Flex COBRA should be offered at least up to the end of the current plan year. As far as the return from military leave, the plan should have some leeway to either require that the employee wait until the next open enrollment or to allow reinstatement under the FSA.