COBRA coverage for ex-owners

Smithdeal

When my two bosses retire January 1, 2001, they will be retained by the new owners of the business on a "consulting" basis, working an indeterminate number of hours per week/month. Do I issue these two men the COBRA papers to stay on our Group Health Plan. Other employees going to part-time have been issued COBRA or those hired for under 30-hours per week were not eligible for benefits.

bsa

Retirement and/or reduction of hours are both qualifying events and therefore trigger COBRA notification requirements.