Flex Plan-Open Enrollment

jmcaa

Do you request a signed election form for EVERY employee even if they are not electing to participate?

Is there are reason why this is done - or can you put in the instructions that NOT turning in an Election Form means you elect NOT to participate?

I usually request one back for every employee but then I have to contact other offices to try to get forms for about 2 weeks after the deadline. Very time consuming!

Thanks for your help!

stilldazed

You are correct in that it is time consuming.

Check your plan's SPD and see what your company allows. If there is a provision to allow a no response to equal a declination, you would be OK in not requiring a signature from everyone. You would have the burden, however, of ensuring that you made a reasonable effort to get the message out and ensure that every employee knows about the provision.

Because it is nearly impossible to get every single employee to sign when and where you need for them to, it is common to have a provision in the SPD to allow for a no response.

If your SPD doesn't allow for the no-signature provision, consider developing an electronic verification and work through e-mail, or consider the fax. If all else fails, put a letter together advising the workers of a drop-dead date and mail the letter and required forms to their home addresses via certificate of mailing (about $2 per package) with 2 to 4 weeks to respond. The certificate of mailing will require that the packages be personally delivered to a post office for hand stamping, but in case you are challenged by a worker who claims ignorance of the process, the courts will accept the certificate of mailing as a valid reasonable attempt to get the information to the worker.

Best wishes.

FunHRBanker

We require a form back from everyone so they can't say they didn't know about the benefit or weren't offered a chance to participate. This year we're doing strictly internet enrollment and there is a button for non participation. We only have 75 employees, so hounding them isn't TOO bad.

dbutton111

We don't have anyone fill out forms every year unless they are making a change. Even if we are making a change to our plans. We have language on our forms the employee signs when they initially enroll that states that their election will carry forward to future years if they do not elect to make any changes during open enrollment. It also states that if the company makes a change to the plans, employees who do not make a new election will be enrolled at the same level (single, family, etc.) and in the least expensive plan available.

Beverlee

I require all employees sign a new SRA each plan year during open enrollment. We have about 200 ees, and I usually have to chase down 2 or 3. With 3 shifts, our open enrollment meetings are over a 3 day period- very slight chance of anyone missing one of them, unless they are on vacation, at training, or out on sick leave.

While I don't outright *lie*, I do strongly imply, that the forms are required by the IRS- even if waiving participation- because our auditors always request them.