Question: What are the cafeteria plan nondiscrimination tests, and what is the definition of highly compensated for each? Short Answer: Each component of the cafeteria plan has a different set of nondiscrimination tests and the definition of highly compensated. Cafeteria Plan Nondiscrimination Testing (§125) a) Nondiscrimination Test Components Eligibility Test Contributions and Benefits Test Key […]
Sally Bracho, who has been with ABD since its founding, is our Property & Casualty practice’s resident contract specialist. As SVP of Claims and Contracts, Sally manages contract review for our clients – a task that grows more complex as risk itself grows more complex. She often looks at this process as helping her clients […]
Question: When are an employer’s severance benefits subject to ERISA? Short Answer: Severance benefits that are part of an ongoing administrative program with clear eligibility standards or benefit provisions are subject to ERISA. General Rule ERISA §3(1) includes severance plans as a welfare plan subject to ERISA because they provide benefits in the event […]
Question: How do the 12-month COBRA determination period requirements apply where the plan year or premium changes mid-year? Short Answer: With some limited exceptions, the general rule is that the plan’s COBRA premium must remain consistent for a 12-month determination period. General Rule: 12-Month Determination Period The plan generally must keep a stable COBRA premium […]
As of today, several thousand cases of coronavirus and over 100 related deaths have been reported worldwide. The outbreak of the virus originated in the Chinese city of Wuhan and Beijing has broadened the quarantine to 50 million people. However, the mayor of Wuhan has reported that more than 5 million people have already left […]
Question: When does an employee’s eligibility for Exchange coverage create a Section 125 permitted election change event to change an employer’s health plan election? Short Answer: In two limited circumstances (both of which are unrelated to eligibility for subsidies on the Exchange), employees may experience a Section 125 permitted election change event to revoke their […]
Because acquisitions often move quickly and without much advance warning, proactively planning for broker selection and the R&W placement process is paramount. While most underwriters appreciate 2-3 weeks to place a policy, it can be done in as little as 24 hours if the necessary underwriting information is properly prepared. Broker selection is often the […]
Question: Can employees utilize the dependent care FSA if their spouse works from home or is self-employed? Short Answer: In most cases, employees with a spouse who works from home or is self-employed can still have eligible dependent care FSA expenses as long as the spouse has “earned income”. General Rule: Dependent Care Expenses Must […]
Ever wonder how the most productive people stay motivated? New research on the brain can help you minimize distractions, stay focused, and achieve the most important tasks. According to a recent article by Ravi Shankar Rajan published in Medium Digest, dopamine is the neurological source of motivation. It is well known that dopamine contributes to […]
Question: How do the HSA catch-up contribution rules work, and particularly how do they apply for married individuals? Short Answer: If both spouses are HSA eligible and at least age 55, each spouse may make a $1,000 catch-up contribution to their own HSA. Catch-Up Contributions: General Rule Individuals who are HSA eligible and age 55+ […]
ABD Insights Blog