Applying Look-Back Rule with Employee Converting to Part-Time

[Eric Taylor]

Sorry, not my usual area and our in-house expert is unavailable so please forgive what is likely an ignorant question.  If employer with self-insured plan uses look-back method for determining full-time status and has an executive who is stepping down and curtailing hours significantly (so will still be a salaried employee but only working 15 or so hours a week), can they use the look back method to extend full-time status through the stability period and not have to provide COBRA to them until they lose full time status after end of the stability period even though they are clearly in a part-time position?

I know the rules are generally aimed at making sure employees get a chance at full time status and coverage if hours may fall below but here they are basically using the rule to provide extended coverage to a form HCE.  If that's the way the rule works though, I suppose no 105(h) issue if everybody (NHCEs and HCEs) all get treated the same?

Thanks