Cafeteria Election form not returned

[Guest kevkor]

We sent out 1165 cafeteria forms and received 809 back. There is a change to the health plan payroll deduction, so we required forms to be returned. A line in the letter accompanying the election form stated if the form was not returned, your medical election would default to your 2005 choice. Now we need to get forms from the people who we will keep their medical coverage due to the payroll deduction change. Any tips on how to correspond with these people to get them to return their forms?

[QDROphile]

Do you want to start with a discussion about what the 2005 election says about its duration or what the plan says about the failure to submit a new election?

[jmor99]

I'm not sure I understand the question. Why do you need forms if they've been told their 2005 coverage election is the default (at the new price) unless they return the form choosing otherwise?

[Guest kevkor]

Do you want to start with a discussion about what the 2005 election says about its duration or what the plan says about the failure to submit a new election?

The 2005 form did not state anything about not returning a form and neither did the 2006, our letter to employees did. I have looked through the plan document and was no mention.

[Guest kevkor]

I'm not sure I understand the question. Why do you need forms if they've been told their 2005 coverage election is the default (at the new price) unless they return the form choosing otherwise?

In case of an audit, the employee payroll deduction does not match their election form. The 2005 form does not indicate anything about a default election for 2006. The default was mentioned in a letter to employees.

[QDROphile]

You may wish to consider whether or not you can reduce someone's pay withour their consent. What if I wrote you a letter saying I would send you a trinket in the mail for $100 unless you wrote me back and declined? Would you expect that to be enforceable? You have very bad documentary foundation for what was done.

[Guest kevkor]

You may wish to consider whether or not you can reduce someone's pay withour their consent. What if I wrote you a letter saying I would send you a trinket in the mail for $100 unless you wrote me back and declined? Would you expect that to be enforceable? You have very bad documentary foundation for what was done.

I completely agree with you. My employer, who I have been with since October 05, has never required new forms, and in some cases no forms at all. I just "assumed" that new forms were completed each year, especially if payroll deductions were changed, but the payroll department does not require new forms for these changes. HR left it up to payroll to get the forms.

Change is slow.

Thanks for your replies, I really appreciate it!!

[jsb]

Why not set up your plan with "rolling" elections for the POP portion? This is permitted and it saves you the trouble of having to require forms each year. Mostly it saves you the headache of trying to track down those who don't take care of their business and return their annual form, as well as the bad PR with other employees who wake up a couple of years later realizing that a significant tax benefit has been lost.

[Guest kevkor]

Why not set up your plan with "rolling" elections for the POP portion? This is permitted and it saves you the trouble of having to require forms each year. Mostly it saves you the headache of trying to track down those who don't take care of their business and return their annual form, as well as the bad PR with other employees who wake up a couple of years later realizing that a significant tax benefit has been lost.

I think that is what we are leaning toward for next year. Do you do this now? If so do you have any sample verbage or information you are willing to share? I've typically dealt with less tham 300 employees, all in one location so getting forms returned was never really a big problem. Now with over 1000 employees, and 50+ locations it's almost impossible to track forms down.

[jmor99]

I don't recall the exact wording, but I have seen election forms with a statement somewhere at the bottom to the following effect:

"Unless I elect otherwise, I authorize my employer to continue deducting for this/these elected coverage(s) at the new current cost."