ERISA guy Posted July 2, 2024 Posted July 2, 2024 An employee is the subject of a QMCSO with the employee's child as the alternate recipient. The employee is married to another employee (the step-parent). The parent/employee is enrolled as the spouse of the step-parent/employee. May the child be enrolled as a dependent in the family coverage of the step-parent/employee, or should the parent/employee be removed from the spouse's family coverage and enrolled as a participant in the employee's own right with the alternate recipient as a dependent of the parent/employee?
Brian Gilmore Posted July 2, 2024 Posted July 2, 2024 That's a pretty interesting situation I've never seen come up before. My position would be the spouse could voluntarily agree to cover the child pursuant to the order, which should be fine all around because it achieves the same result for the child. However, because the order applies directly only to the employee, the employer cannot involuntarily enroll the child in the spouse's coverage. If the spouse declines, the employer would therefore have to take the other approach you mentioned--remove the employee from dependent coverage through the spouse, enroll the employee separately in their own coverage, and then cover the child as a dependent through the employee. I'd check the terms of the order first though to be sure this is a reasonable position. You might also consider contacting the issuing agency to confirm. Here's a quick overview of the general rules here in case helpful: https://www.newfront.com/blog/employer-responsibilities-upon-receipt-of-a-nmsn
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