New Hire Enrollment - 31 election period

[Guest moto]

Our process is that new hires are covered from their first day of active work. We give them 31 days to make an election and if they do not make an election, they are defaulted into certain products (medical, dental, vision), but do not get the other welfare-type benefits. After somebody elects (or defaults), we start collecting contributions on the next paycheck. Example, new hire's first day of work is October 17, makes election November 6, first deduction from paycheck is taken November 30 (no retroactive premiums for October 17-November 6), but they are in fact covered from date of hire. I have been told that in order for new hires to have retroactive coverage, the election period cannot be longer than 30 days, is this true? Could somebody provide me with a site for this? Thanks..

[J Simmons]

Take a look a Prop Treas Reg 1.125-2(b) and (d). They are just proposed regs, but they address both auto elections and 30 day for new hires.