Making Election Involving Seasonal Employee Exclusion under ACA

[rocknrolls2]

To effect the election of an employer decision to exclude seasonal employees, does the employer need to do anything official, such as amend the plan, adopt a corporate action (e.g., through board resolutions), file anything with the IRS, DOL and/or HHS?

[QDROphile]

"Election" does not not really compute even though that may be the way the prototype plan doucment world looks. The decision to excluse a class of employees relates to eligibility provisions of the plan. If the plan terms are changing becuse of the decision, the action to change the terms is an amendment. Plan terms should cover how to amend the plan, except that a protortype document probably will not provide enough guidance to address the corporate governance aspects of amendment . Adoption of an amendment by the board of directors of a plan sponsor is usually an uncontroversial approach to the corporate action to amend.

[GBurns]

The change of eligibility to exclude a class of employees requires a change in the eligibility provisions of the plan which, in turn, requires the adoption of the amendment/change by the Board of the Plan Sponsor.

Nothing needs to be filed with the IRS etc.