Mid-year election changes to cafeteria plans
Let's talk cafeteria plans. When can participants make election changes?
While cafeteria plans can be a great option for employees wishing to pick and choose benefits based on cost, when and how to facilitate election changes outside of open enrollment can be tricky to navigate for employers. As the use of cafeteria plans continue to grow, we take a deeper look at the rules and regulations of these plans, particularly as they pertain to mid-year election changes.
A cafeteria plan is an employee benefit plan that allows staff to choose from a variety of pre-tax benefits. Employees can contribute a portion of their gross income before any taxes are calculated and deducted. Cafeteria plans are maintained by an employer for employees that meet the specific requirements and regulations of section 125 of the Internal Revenue Code.
Cafeteria plans are becoming more popular among larger businesses, but the questions surrounding mid-year election changes (a change requested outside of open enrollment) remain in tact.
Part of our ERISA Compliance Series, this webinar is hosted by ERISA attorney Larry Grudzien and moderated by digital marketing strategist Lauren Fischer. It discusses mid-year election changes for cafeteria plans, including live Q&A throughout the session.
Our on-demand webinar covers:
- When an employee can make midyear election changes
- Permitted election change events
- The amount of time an employee has to request a change
- Referencing the Section 125 plan document
- And more
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