IRS proposes regulations on effect of FMLA on cafeteria plans

Article Abstract:

IRS proposed regulations under IRC section 125 state that employers will be required to maintain health coverage under cafeteria plans that the employee has been participating in when an employee goes on leave under the Family and Medical Leave Act. The coverage must be restored when the employee returns. The employer can require the employee to make the same contributions to the plan required before the leave, but the employer cannot insist that the employee pre-pay. Non-health cafeteria benefits are not guaranteed, but the same benefits should be available on the employee's return.

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Coordination of cafeteria plan rules with the FMLA rules

Article Abstract:

IRS regulations issued under IRC section 125 were intended to clarify how the Family and Medical Leave Act (FMLA) affects cafeteria plans, but the regulations fail to resolve all issues. Under the FMLA, employers are obligated to maintain health benefits for employees on leave but are only required to ensure that non-health benefits are available upon return to work. The regulations focus on premium payments, flexible spending accounts and means of payment, but they do not resolve election and revocation issues and reimbursement of employer payments if the employee does not return.

Pension, health, and welfare funds, Pension Funds & Benefit Plans, Pension Funds

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New cafeteria plan regulations: many questions still remain

Article Abstract:

The IRS needs to provide further guidance to supplement the employer cafeteria plan temporary and proposed regulations it issued on Nov 7, 1997. The new guidance addresses important issues such as status changes and elective changes during plan years in health care coverage. Several areas which were not addressed need guidance to bring the rules up to date with legal and administrative changes in the health care arena.

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