FSA - Termination of Coverage for Nonpayment of Premiums

[rocknrolls2]

Company X maintains a cafeteria plan for its employees. The cafeteria plan permits premium conversion of medical and dental coverage and has flexible spending accounts for medical and dependent care expenses. Company X has a number of employees who are paid primarily on a commissioned basis. In many cases, these employees may receive little or no commissions from which to deduct payments for the coverage. Assume Employee C enrolled for coverage in 2008 under X's cafeteria plan for medical, dental and medical FSA coverage. The plan document authorizes the termination of coverage for nonpayment of premiums. Assume Employee C receives no commissions during Januayr 2008 but elects to have Lasik surgery done. Can C's coverage be terminated retroactively?

[QDROphile]

What does the plan say about timing of payment and termination of coverage relative to failure of pay reduction? If the terms are not pretty clear about the timing of coverage termination, the coverage should not be considered terminated until the period following the period of failure.