Qualifying Change of Status

Hunter1

Have I been properly informed? We will make substantial changes (hopefully) to our health plan effective 1/1/04. Our sign up for Section 125 ends 12/12, and we will not be done negotiating these changes prior to that. If employees sign up based on the plan parameters this year, I've been told that they cannot change their 125 amount next year; 'not a qualifying change of status', BUT, if their spouse's plan changed in the same way, they could change our 125 amount. Is that correct?

Pearce

The changes allowable due to changes in coverage are addressed in the final regulations. Your 125 plan document may need to be amended to allow all of the permitted election changes so you will need to additionally check your own documents.