change in pre-tax premium allowed due to change in cost/coverage?

[Guest Sara H]

A flex plan runs from 7/1 - 6/30. Participants are pre-taxing premium through the plan. Their insurance coverage is changing effective 1/1/2004 with a significant change in premium. They are being told that they cannot switch from family coverage to single coverage through the flex plan at this time. I don't believe that this is correct. Any comments? I know that they cannot change their spending account elections, but I thought the change in status rules allowed for a change in pre-tax premium amounts if there is a significant change in coverage or cost.

[Guest JerseyGirl]

I believe they are being given incorrect information. Deloitte & Touche has a very useful matrix for Change of Status which I first saw right here on BenefitsLink. Check it out:

http://benefitslink.com/links/20030128-020503.shtml

[QDROphile]

Don't forget that the plan does not have to allow changes that the law would allow.