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Message Boards Digest

June 1, 2022

Here are the most recently added topics on the BenefitsLink Message Boards:

Vlad401k created a topic in 401(k) Plans

Controlled Group -- Plans Have Different Eligibility Requirements

"Let's say there are two plans in a Controlled Group:

Plan A - 3 months of service required for eligibility

Plan B - 6 months of service required for eligibility

Questions:

[1] How would the coverage testing be done to determine if the plans can be tested separately? Would you use the appropriate eligibility for each plan (3 months for Plan A and 6 months for Plan B) for coverage testing purposes, or would you use the more lenient eligibility (3 months) to determine who is eligible and benefiting for coverage purposes? This question only relates to coverage testing done to determine if the plans can be tested separately.

[2] Let's say the plans pass coverage testing on their own and can be tested separately for non-discrimination purposes. In this case, it's my understanding that the eligibility requirements can stay as is and don't have to be the same for both plans. So, Plan A can still have the 3 month eligibility requirement and Plan B can still have the 6 month eligibility requirement. Because they pass coverage testing separately, the eligibility requirements don't have to be consistent. Is that correct?

[3] Let's say the plans fail coverage testing on their own and must be aggregated. Would Plan B be required to change its eligibility to 3 months (the more lenient eligibility requirement between the 2 plans)?"

1 reply so far   |    Click Here to Add a Reply
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kmhaab created a topic in Health Plans (Including ACA, COBRA, HIPAA)

COBRA Termination for Nonpayment During Public Health Emergency?

"How are others interpreting a plan sponsor's obligations related to the delayed deadline for payment of COBRA premiums during the PHE? That is, if an individual is currently receiving COBRA and not paying monthly premiums, does the plan sponsor have to keep the coverage active until the delayed payment deadline is passed? Or can the plan sponsor cancel COBRA and reinstate it retroactively if payment is received by the delayed deadline?

My interpretation has been that COBRA should not be cancelled for nonpayment of premiums until the delayed deadline has passed, but I am hearing chatter that others are interpreting it differently."

No replies yet   |    Click Here to Add a Reply

Hope created a topic in Qualified Domestic Relations Orders (QDROs)

Participant Withdraws Entire Money Purchase Plan Account But Alternate Payee Now Angry

"2 letters were sent from plan administrator stating the funds could be dispersed per ERISA 18 month rule in full to the participate if the QDRO that was approved by the plan and sent back for signature from the court is not returned to the plan. Not in exact words but meaning was they needed the signature of the court and sent back to them. These letters were a year apart of them being sent. Wife takes the full amount of the account and rolls it over out of the plan since the last letter stated the same and has been waiting over 6 years and this is first time the 18 month rule was mentioned. Now the attorney who did not file the QDRO until 5 days after funds were rolled over leaving a account balance of $0 with the plan files a contempt charge on wife stating that Wife did not pay spouse what was owed per the divorce decree and QDRO. Should the wife return the funds to the plan that has been discharged per the letters?"

1 reply so far   |    Click Here to Add a Reply

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