| Frequently
Asked Questions Regarding Change In Benefit Election (Change In Status or Life
Event)
QUESTION: Can I change
my Benefit Elections at Any Time?
No. Once your election has been made it must remain in
force for the balance of the Plan Year unless you experience a
Qualifying Life Event (Qualifying Change in Status).
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QUESTION: What is a
Qualifying Life Event (Qualifying Change in Status)?
Because a Section 125 Flexible Benefit Plan has
tax advantages allowed by the federal government there are restrictions to keep
employees from electing, changing, or terminating coverage without good cause.
That good cause is a life event (change in status).
Internal Revenue Service regulations require that if
you are a new employee you must enroll in the plan when you first become
eligible and, thereafter, that you enroll before the beginning of each Plan
Year. Your elections must remain in effect for the entire Plan Year - unless
you experience a "qualifying change in status". If you have a
qualifying change in status you can make limited changes in your selections if
your status changes for one of the following reasons:
-
Change in your legal marital status-including marriage, divorce, death of
spouse, legal separation, and annulment.
-
Change in number of dependents-including birth, adoption, placement for
adoption, and death.
-
Change in employment status-including the employment status of yourself, your
spouse, or your dependent.
-
Dependent satisfies (or ceases to satisfy) dependent eligibility requirements.
-
A significant change in the coverage or the cost of coverage.
If you experience a "qualifying change in
status", and you wish to modify your benefit selections, you must notify
your employer, usually your Human Resource Department, within 30 days of the
change. It is important to note that the change you wish to make must be
consistent with the "change in status". For instance, if you get
married you would be able to "add" coverage for your new spouse but
you would probably not be allowed to drop medical coverage for yourself, unless
you became eligible to be covered under your new spouse's plan. If you wait
beyond 30 days of the qualifying event you must wait until the next Plan Year
enrollment to make the changes and restrictions may apply at that time.
Remember, these are general guidelines. Your
employer's plan may have additional restrictions not mentioned here.
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