Government plans / Uniform coverage rule

[Guest cshade]

Are government plans (federal and non-federal) subject to the uniform coverage rule or is they exempt from this under ERISA? I have a broker telling me that govt plans can get out from under uniform coverage because of ERISA, I don't agree. I've read several of the posts on the website, but don't see anything, but I could have missed this. Your help is much appreciated.

[ETA Consulting LLC]

Government entities, generally, are not subject to ERISA.

Good Luck!

[QDROphile]

What do you mean by universal coverage? See IRC section 403(b) (12), usually referred to as universal availability. Note that this is not ERISA.

[Guest cshade]

I'm sorry, i'm referring to the FSA uniform coverage rule. The group in question is a county facility whose termed employee has overspent her account and they do not want to release the reimbursement check because they said it would be 'a gift of public funds'. The broker says that since government plans are not subject to ERISA, the Uniform Coverage rule does not apply to them. I'm trying to find out if this is correct.

[Chaz]

The broker is incorrect. The uniform coverage rule is contained in Section 125, which is part of the Internal Revenue Code and not ERISA. Government employers are generally subject to Code Section 125 in the same way as other employers.