What's a "prospective" date of election under Section 125?

[Guest CWells]

I'm confused about the meaning of "prospective" as it applies to Section 125. Does "prospective" mean the date of the request to change the election or the date of the event that's causing the change? For example, if an employee gets married on 3/1, but doesn't notify the employer until 3/15, then would the effective date of the new spouse be 3/1 or 3/15?

If it's 3/15, could the employee be allowed a retroactive effective date to 3/1 if the salary reductions for 3/1 thru 3/14 are taken on an after-tax basis?

[SLuskin]

Prospective means the date that the Change in Status Form and a corresponding new election form are signed by the employee. It also ususally means the pay date following. Only adding a newly born/adopted child to a group medical plan can be retroactive in a cafeteria plan.

Yes, the premium for a spouse can be paid "retroactively" on an after tax basis if permitted by the group medical carrier.