2.5 Month Extension

[Guest gbginc]

Group elects 2.5 month extension (calendar year plan) but the person trying to file 2006 service dates (medical reimbursement category) against their 2005 plan did not actually re-enroll in that category (they are only doing pre-tax premiums) for the 2006 plan year. The SMM does not give specifics about enrollment for the new plan year but it seems logical that they have to be participants in the new year in order to accept the claims and then give them the option to claim it against old plan year or new. Any thoughts?

[QDROphile]

If the participant is eligible on the last day of the year, the extension aplies even if they are not employed in the next year. Your plan amendment should give you adequate guidance on this point. If it does not, you might think about whether or not your amendment is valid.