Subsidy: What about qualified beneficiaries who terminated employment voluntarily?

[Guest Benefitsrock]

What notice do the qualified beneficiaries who terminated employment voluntarily between 9/1/08 - 2/16/09 receive? It's my understanding that all qualified beneficiaries who terminated employment between 9/1/08 and 12/31/09 must receive notice of the subsidy, but this group appears to be left out of the DOL model notices.

An informal discussion with a DOL representative suggests the notice for extended election period should be provided to those who terminated employment voluntarily between 9/1/08 - 2/16/09. Then if there is a dispute between the employee (who thinks he was involuntarily terminated) and the employer (who thinks the employee voluntarily terminated his employment), the employee can request an expedited review by the DOL.

I would appreicate any and all thoughts. Thanks in advance.

[Guest sniffles]

It states clearly:

General Notice (Full Version) Plans subject.....must send the General Notice to all qualified beneficiaries, not just covered employees, who experienced a qualifying event at any time from Sept 1, 2008 thru Dec. 31 2009 regardless of the type of qualifying event, AND who either have not yet been provided an election notice or who were provided an election notice on or after Feb 17, 2009 that did not include the addiitonal information required by ARRA. This would include voluntary terminations, retirements, dependents ceasing to be eligible

You would send the General Notice (Abbreviated Verson) to those who experienced qualifying event Sept. 1 or after who elected COBRA and are still on COBRA.

You would send the Notice in Connection with Extended Election Period to those who experienced an "involuntary termination" from Sept. 1 thru Feb. 16, 2009 who DID NOT elect Cobra and can now have a second chance to elect it.

[401 Chaos]

There is another recent thread that touches on this issue and links to some of the recent guidance.

I think the tricky part here is the portion of the instructions sniffles quoted which limits having to distribute the general release to those " who either have not yet been provided an election notice or who were provided an election notice on or after Feb 17, 2009 . . . ."

Assume in this case you have individuals who the employer considers to have voluntarily terminated prior to Feb. 17th. Assume also that they were previously provided a general COBRA release (presumably without ARRA language). In this case, the instructions seem to say you should not have to send these individuals any notice because they were not considered involuntarily terminated (so no second election notice) AND they already received a General Release (so no need to send an updated General Release).

Even though it seems you might avoid having to provide notices to these individuals (again assuming they previously received the required general release), I think the better approach--at least with respect to individuals experiencing a termination of employment (whether voluntary or involuntary) as a qualifying event--is, as the DOL rep adivsed, to nonetheless provide notices so they can appeal / challenge the employer's voluntary termination classification.

For those individuals who experienced some qualifying event other than a termination (death, divorce, etc.) and previously received a general release, seems there is probably sufficient guidance not to send any notice to these folks without much risk to the employer.

[Guest Benefitsrock]

Thanks so much 401 Chaos. My question did concern just the folks who involuntarily terminated between 9/1/08-2/16/09 and had received an election notice. Thanks again!