What requirements apply to participants elections under a cafeteria plan?
A-8: A plan is not a cafeteria plan unless the plan requires that participants make elections among the benefits offered under the plan. A plan may provide that elections may be made at any time. However, benefit elections under a cafeteria plan should be made in accordance with certain guidelines (see Q&A-15) in order for participants to qualify for the protections of the section 125 exception to the constructive receipt rules. An election will not be deemed to have been made if, after a participant has elected and begun to receive a benefit under the plan, the participant is permitted to revoke the election, even if the revocation relates only to that portion of the benefit that has not yet been provided to the participant. For example, a plan that permits a participant to revoke his election of coverage under a dependent care assistance program or of coverage under an accident or health plan after the period of coverage has commenced will not be a cafeteria plan. However, a cafeteri
A 8: * * * However, a cafeteria plan may permit a participant to revoke a benefit election after the period of coverage has commenced and make a new election with respect to the remainder of the period of coverage if both the revocation and the new election are permitted under § 1.125 4. * * * * * Par. 3. In § 1.
Related Questions
- Is health plan coverage provided under a cafeteria plan subject to the federal health care continuation requirements of the Consolidated Omnibus Budget Reconciliation Act ("COBRA")?
- In what circumstances may participants revoke existing elections and make new elections under a cafeteria plan?
- What requirements apply to participants elections under a cafeteria plan?
