Time to Elect Coverage Following Change in Family Status

[Guest pep]

What is the maximum statutory time frame to elect health coverage following a change in family status? What if the participant misses the deadline stipulated in the plan? How common are after tax contributions? What are the administrative concerns associated with them?

[Guest nb]

Cafeteria plan states 30 days. We also have a requirement that everyone must choose a medical plan.

Has someone gone over the 30 day maximum, probably. Have we still enrolled them, probably.

[Guest pep]

What are the consequences of enrolling them after the cutoff?

[Guest nb]

Would have to do some research on what consequences are. We've never been questioned about it, so have never paid the consequences. Our health plans use our enrollment dates and haven't questioned them in the past.

[Guest myvettee]

My question is along the same lines of the statuatory time line for mid-year changes. My situation is such that, employee has applied within the 30 day limitations for mid-year change (June 99) but employee's new withholding does not take effect until August being employee is out on maternity leave. I cannot withhold in the proper timeframe when employee has no pay coming until she returns to work in August. Is this the proper procedure in handling this type of mid-year change?

[Joe Priselac]

This employee actually has two status changes in this one event. the birth of a child and a change in work status. I am assuming she is off of your payroll while she is out on maternity leave. When she returns to active employment is the trigger for a change in election. as far as how long you can go beyond the actual event, the regulations suggest a period such as 30 days. However, you could allow 45 days for example. The problem you could have if you allow too much time is linking the change in withholding with the event that supposedly triggered the change. Hope this is helpful.