which act extended medical benefits for certain terminated employees

The Consolidated Omnibus Budget Reconciliation Act (COBRA) requires most group health plans to provide a temporary continuation of group health coverage that otherwise might be terminated.

Full Answer

What are the benefits of employee compensation laws?

A) Increase the complexity involved in compensating employees. B) Protect the rights of employees by legislating workplace equity. C) Generate increased tax revenue for governmental entities.

How do I terminate an employee with change in health benefits?

complete parts A, B, and H of the Notice of Change in Health Benefits Enrollment (SF 2810); state the reason for the termination in the Remarks section (e.g., "Employee resigned"); and send the carrier and payroll office copies to the payroll office for transmission to the carrier and for posting to the payroll records, respectively.

How does the Employment Act protect the rights of employees?

Protect the rights of employees by legislating workplace equity. True or False: The Age Discrimination in Employment Act prohibits discrimination in employment practices for workers who are age 35 and older. The employer is responsible for alerting the employee to changes in processes and benefits.

What benefits are you entitled to if you are an employee?

You are entitled to receive some benefits by law 2 . Your employer may opt to provide additional benefits other than those mandated by state or federal law. Ask about severance pay, accrued vacation, overtime and sick pay, pension benefits, and eligibility for unemployment insurance.

What components make up FLSA coverage?

The FLSA is the Federal law which sets minimum wage, overtime, recordkeeping, and youth employment standards. The minimum wage for covered nonexempt workers is not less than $7.25 per hour effective July 24, 2009. With only some exceptions, overtime ("time and one-half") must be paid for work over forty hours a week.

What is the effect of payroll related legislation on payroll practice?

What is the effect of payroll-related legislation on payroll practice? business-planning tools. The Current Tax Payment Act changed employer remittance of taxes by: Requiring employers to remit taxes at specific times during the year.

Which Act governs the minimum wage that must be paid to nonexempt workers?

The Fair Labor Standards Act (FLSA)The Fair Labor Standards Act (FLSA) establishes minimum wage, overtime pay, recordkeeping, and youth employment standards affecting employees in the private sector and in Federal, State, and local governments.

Which Act governs the minimum wage that must be paid to nonexempt workers quizlet?

Which Act governs the minimum wage that must be paid to nonexempt workers? Fair Labor Standards Act.

Which of the following requires employers to extend health insurance benefits to former employees for up to 18 months?

Which of the following requires employers to extend health insurance benefits to former employees for up to 18 months? -The Consolidated Omnibus Budget Reconciliation Act (COBRA).

Which of the following is a provision of the Fair Labor Standards Act FLSA )?

The Fair Labor Standards Act (FLSA) establishes minimum wage, overtime pay, recordkeeping, and child labor standards affecting full-time and part-time workers in the private sector and in Federal, State, and local governments.

What did the Fair Labor Standards Act of 1938 do?

Generally, the bill provided for a 40-cent-an-hour minimum wage, a 40-hour maximum workweek, and a minimum working age of 16 except in certain industries outside of mining and manufacturing.

Did the Equal Pay Act passed?

Eighteen years later, on June 10, 1963, President John F. Kennedy signed the Equal Pay Act into law. It was enacted as an amendment to the Fair Labor Standards Act of 1938, which regulates minimum wages, overtime, and child labour.

What is the FLSA new deal?

The legislation updated the landmark Federal Fair Labor Standards Act of 1938. That measure—widely considered the last major legislative accomplishment of the New Deal—provided for a 40-hour workweek, outlawed child labor, and set a minimum wage of 25 cents per hour which increased to 40 cents over a seven-year period.

Which if any of the following may be classified as exempt employees under the FLSA?

Exempt professional employees include lawyers, physicians, teachers, architects, registered nurses and other employees performing work requiring advanced education or training. These typically are intellectual jobs requiring specialized education and involving the use of discretion and judgment.

Which of the following is generally required to establish just cause for a termination quizlet?

labor agreements require it. Which of the following is generally required to establish just cause for a termination? All of the above: Due process.

Which of the following is a qualifying event necessitating an offer of Cobra continuation coverage?

Which of the following is a qualifying event necessitating an offer of COBRA continuation coverage? Employers must provide benefits in the form of basic health insurance, paid vacation and pensions. Pursuant to ERISA, a plan administrator under a fiduciary duty is required to act in the best interests of the employer.

How long does a FEHB policy last?

However, if an individual timely purchases guaranteed-issue insurance coverage on or off the Exchange, as opposed to a conversion policy offered by an FEHB Program carrier, the effective date of the conversion coverage may be more than 31 days after the termination of his or her FEHB coverage. In the event this 31-day temporary extension period provides insufficient opportunity for the enrollee to exercise his or her right to convert to a guaranteed-issue non-group contract with an effective date commencing before or immediately upon the end of the 31-day temporary extension of coverage period, the Carrier may provide an additional extension of coverage not to exceed a total of 60 days as appropriate to avoid an interruption in coverage.

What happens if you are excluded from FEHB?

If the enrollee's position is excluded from FEHB coverage but he/she was erroneously allowed to enroll, his/her employing office must terminate or void the coverage as soon as the error is discovered . The employing office must explain to him/her why he/she is not eligible for coverage and the effect of the termination.

What happens if you are erroneously enrolled in a non-group contract?

If he/she was erroneously enrolled and premium withholdings and contributions were made, the employing office must terminate coverage and discontinue withholdings and contributions at the end of that pay period . No adjustments are made for contributions and withholdings that already have been made. The enrollee and his/her covered family members are entitled to full plan benefits during the time they were erroneously enrolled. He/she is entitled to convert to a non-group contract the same as any other employee whose enrollment is terminated.

What is the Employing Office responsible for?

The employing office is responsible for providing all employees who are enrolled or eligible to enroll in FEHB with information about their right to TCC. This information is included in plan brochures and the booklet Temporary Continuation of Coverage under the Federal Employees Health Benefits Program (RI 79-27).

How long does a family member lose TCC?

loses coverage after 12 months in a leave without pay status; is a compensationer and loses coverage because the compensation terminates; is a family member who loses coverage when the enrollee changes to a Self Only enrollment, cancels coverage, or separates from service and the family member does not elect TCC;

Who collects premiums for OPM?

The employing office of the employee or annuitant at the time of the qualifying event is responsible for collecting premiums. The employing office sends the premiums it collects to OPM.

When does a conversion contract become effective?

The enrollee or his/her family member's conversion contract becomes effective at the end of the 31-day extension of coverage, even when the enrollee or his/her family member is an inpatient in a hospital on the 31st day of extended coverage.

How does leaving a job affect your benefits?

One of the first things to remember in many of these situations is that how you leave a job can have a big impact on how the employer will feel about you and how cooperative they may be in providing benefits after the end of the employment relationship . Also, the reason for leaving can have an impact on what benefits you may be entitled to receive.

What does it mean when a company lays off employees?

Lay-offs usually happen as a company experiences some downturn in its fortunes, meaning it is likely the company will have less to share with its former employees who are losing their jobs.

How much notice do you need to give when quitting a job?

When quitting a job, providing two weeks notice is customary, even if the employer does not ask for notice. Also, it may not always be easy, but it is best to tell your boss about your decision in person. Try to remain cordial and stay positive about your experience with the employer, as you may need a reference in the future and it will help to keep them from feeling resentment toward you that could lead to an arbitrary denial of benefits.

What happens if you leave your job?

Also, the reason for leaving can have an impact on what benefits you may be entitled to receive. Laws vary from state to state regarding what benefits must be provided after employment ends. Thus, before you leave your job, you will want to know what benefits you are eligible for. In every state you are entitled to receive some benefits by law.

Does a company have to offer a severance package?

In most cases, the company has no obligation to offer a severance package, but, depending on circumstances and the reason for the lay-off, it is not out of the question. Again, when you have questions regarding these matters, you can consult with your state's labor department or contact a local employment law attorney.

Is severance required for a job?

A severance may also be offered to ease the employee's transition, but this is usually not mandatory. Also, entitlement to vacation and sick time becomes a little more murky depending on the circumstances of the termination, the laws of the local jurisdiction, and the employer's policies.

What benefits can an employer provide?

Ask about severance pay, accrued vacation, overtime and sick pay, pension benefits, and eligibility for unemployment insurance. Request information on the continuance of health and life insurance benefits.

How long does Cobra cover?

Health Insurance (COBRA) Your employer, if the firm has over 20 employees, is mandated by law to offer health insurance coverage through Cobra to terminated employees for 18 months. You will need to pay for this coverage. In some cases, employers will pay for coverage for a limited time as part of a severance package.

How much notice do you need to quit your job?

Quitting Your Job. Providing two weeks notice is customary. Even if your employer doesn't ask for notice, it is a good idea to offer it. Even though it's not easy, it is best to tell your boss in person. Try to remain positive since you may need a reference in the future.

Do you get a severance package with unemployment?

In addition to unemployment insurance, health insurance, and pension benefits, you may be offered a severance package. Companies aren’t obligated to provide severance pay; however, depending on circumstances, they may do so anyway.

What is the title of the Health Insurance Portability and Accountability Act of 1996?

Title I of the Health Insurance Portability and Accountability Act of 1996 (HIPAA) provides portability of health coverage by, among other things, Start Printed Page 26353 requiring special enrollment rights into group health plans upon the loss of eligibility of coverage.

When is a special enrollment period required?

In general, HIPAA requires a special enrollment period in certain circumstances, including when an employee or dependent loses eligibility for any group health plan or other health insurance coverage in which the employee or the employee's dependents were previously enrolled (including coverage under Medicaid and the Children's Health Insurance Program), and when a person becomes a dependent of an eligible employee by birth, marriage, adoption, or placement for adoption. ERISA section 701 (f), Code section 9801 (f), 29 CFR 2590.701 -6, and 26 CFR 54.9801 -6. Generally, group health plans must allow such individuals to enroll in the group health plan if they are otherwise eligible and if enrollment is requested within 30 days of the occurrence of the event (or within 60 days, in the case of the special enrollment rights added by the Children's Health Insurance Program Reauthorization Act of 2009). ERISA section 701 (f), Code section 9801 (f), 29 CFR 2590.701 -6, and 26 CFR 54.9801 -6.

What is the PHS Act?

PHS Act section 2719, incorporated into ERISA by ERISA section 715 and into the Code by Code section 9815, sets out standards for external review that apply to non-grandfathered group health plans and health insurance issuers offering non-grandfathered group or individual health insurance coverage and provides for either a state external review process or a Federal external review process. Standards for external review processes and timeframes for submitting claims to the independent reviewer for group health plans or health insurance issuers may vary depending on whether a plan uses a State or Federal external review process. For plans or issuers that use the Federal external review process, the process must allow at least four months after the receipt of a notice of an adverse benefit determination or final internal adverse benefit determination for a request for an external review to be filed. 29 CFR 2590.715 -2719 (d) (2) (i) and 26 CFR 54.9815 -2719 (d) (2) (i). The Federal external review process also provides for a preliminary review of a request for external review. The regulation provides that if such request is not complete, the Federal external review process must provide for a notification that describes the information or materials needed to make the request complete, and the plan or issuer must allow a claimant to perfect the request for external review within the four-month filing period or within the 48-hour period following the receipt of the notification, whichever is later. 29 CFR 2590.715 -2719 (d) (2) (ii) (B) and 26 CFR 54.9815 -2719 (d) (2) (ii) (B).

What is the ERISA section 503?

Section 503 of ERISA and 29 CFR 2560.503 -1, as well as section 2719 of the PHS Act, incorporated into ERISA by ERISA section 715 and 29 CFR 2590.715 -2719, and into the Code by Code section 9815 and 26 CFR 54.9815 -2719, require ERISA-covered employee benefit plans and non-grandfathered group health plans and health insurance issuers offering non-grandfathered group or individual health insurance coverage to establish and maintain a procedure governing the filing and initial disposition of benefit claims, and to provide claimants with a reasonable opportunity to appeal an adverse benefit determination to an appropriate named fiduciary. Plans may not have provisions that unduly inhibit or hamper the initiation or processing of claims for benefits. Further, group health plans and disability plans must provide claimants at least 180 days following receipt of an adverse benefit determination to appeal (60 days in the case of pension plans and other welfare benefit plans). 29 CFR 2560.503 -1 (h) (2) (i) and (h) (3) (i), 29 CFR 2590.715 -2719 (b) (2) (ii) (C), and 26 CFR 54.9815 -2719 (b) (2) (ii) (C).

How long after COBRA election can you pay?

Plans are required to allow payment of premiums in monthly installments, and plans cannot require payment of premiums before 45 days after the day of the initial COBRA election. ERISA section 602 (3) and Code section 4980B (f) (2) (C). COBRA continuation coverage may be terminated for failure to pay premiums timely.

How long is the ERISA outbreak period?

Subject to the statutory duration limitation in ERISA section 518 and Code section 7508A, [ 7] all group health plans, disability and other employee welfare benefit plans, and employee pension benefit plans subject to ERISA or the Code must disregard the period from March 1, 2020 until sixty (60) days after the announced end of the National Emergency or such other date announced by the Agencies in a future notification (the “Outbreak Period”) [ 8] for all plan participants, beneficiaries, qualified beneficiaries, or claimants wherever located in determining the following periods and dates—

What is section 104?

Under section 104, the Departments, through the MOU, are to provide for coordination of policies relating to enforcement of the same requirements in order to have a coordinated enforcement strategy that avoids duplication of enforcement efforts and assigns priorities in enforcement.

How long does it take for a group health plan to deny a request for continuation coverage?

The notice must be provided within 14 days after the request is received, and the notice must explain the reason for denying the request.

What is a health plan?

health plan helps workers and their families take care of their essential medical needs. It is one of the most important benefits provided by an employer.

What is COBRA group health plan?

Under COBRA, group health plans must provide covered employees and their families with certain notices explaining their COBRA rights. Plans must also have rules for how COBRA continuation coverage is offered, how qualified beneficiaries may elect continuation coverage, and when it can be terminated.

What is a cobra employee?

COBRA covers group health plans sponsored by an employer (private-sector or state/local government) that employed at least 20 employees on more than 50 percent of its typical business days in the previous calendar year. Both full- and part-time employees are counted to determine whether a plan is subject to COBRA. Each part-time employee counts as a fraction of a full-time employee, with the fraction equal to the number of hours that the part-time employee worked divided by the hours an employee must work to be considered full-time.

Can you use the Health Coverage Tax Credit for Cobra?

The Health Coverage Tax Credit (HCTC), while available, may be used to pay for specified types of health insurance coverage ( including COBRA continuation coverage).

Can you extend your 18 month coverage?

If you are entitled to an 18-month maximum period of continuation coverage, you may become eligible for an extension of the maximum time period in two circumstances. The first is when a qualified beneficiary (either you or a family member) is disabled; the second is when a second qualifying event occurs.

Who administers Cobra?

COBRA continuation coverage laws are administered by several agencies. The Departments of Labor and the Treasury have jurisdiction over private-sector group health plans. The Department of Health and Human Services administers the continuation coverage law as it applies to state and local government health plans.

What is the Cares Act?

CARES ACT IMPLICATIONS FOR EMPLOYEE BENEFIT PLANS. The Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), enacted on March 27, 2020, was the third piece of legislation passed in an attempt to address the economic impact of COVID-19. The CARES Act included a number of provisions affecting qualified retirement plans and IRAs, ...

When will the IRS release qualified retirement plans?

QUALIFIED RETIREMENT PLANS. In May 2020 , the Internal Revenue Service (“IRS”) released a set of frequently asked questions (available at the IRS website here) that provided additional clarity on a number of important CARES Act retirement plan provisions.

What is the penalty for a CRD?

A CRD was exempt from the 10% early withdrawal penalty typically incurred for withdrawals before age 59½, and from the 25% penalty tax applicable to certain withdrawals from SIMPLE IRAs. [6] The IRS has said that plans should report CRDs on Form 1099-R, using either code 2 (early distribution, exception applies) or code 1 (early distribution, no known exception) in box 7. [7] However, regardless of how the payor reports the distribution, a qualified individual can claim the CRD tax benefits if the distribution meets the requirements.

What is the purpose of ARPA?

ARPA’s multiemployer plan provisions adjust a number of multiemployer plan funding requirements to give plans more time to absorb liabilities and improve funding status. ARPA also allows plans to “freeze” their status for a year with respect to designations of “green zone,” “endangered,” “critical” or “critical and declining” status for the first or second plan year beginning on or after March 1, 2020 (as elected by the plan) based on their status for the prior year, and adjusts certain requirements normally applicable as a result of critical or endangered status designations. In addition, the statute creates a special financial assistance program for troubled multiemployer plans.

How long can you pay income tax in 2020?

Ordinary income tax does apply (subject, of course, to any special tax treatment available for after-tax contributions, Roth contributions and so forth), but the qualified individual can spread the taxes over three years if he or she so desires, paying 1/3 for 2020, 1/3 for 2021 and 1/3 for 2022.

How long does ARPA last?

Those provisions extend the pension liability amortization period from seven to fifteen years (with this extension accompanied by a “fresh start” that disregards prior year shortfalls and recalculates the plan’s funding status), and extend and enhance interest rate smoothing. Employers have flexibility about when to implement these changes. An employer can implement the amortization period and “fresh start” changes retroactively to the 2019 plan year or delay implementation to a later year through 2022. The interest rate changes take effect for the 2020 plan year but an employer can elect not to have the changes apply for years before 2022 (and can elect that delay for all purposes or only for purposes of benefit restrictions under Section 436 of the Internal Revenue Code).

When will the IRS reamortize the loan?

IRS Notice 2020-50 provided a safe harbor method, pursuant to which the outstanding loan amount (taking into account the loan repayments not made during the suspension period and accrued interest) could be reamortized across the remaining term of the loan plus up to one year, starting in January 2021.

Cancellation

Termination

Processing Terminations

31-Day Extension of Coverage and Conversion

• An enrollee or family member whose enrollment is terminated other than by cancellation or discontinuance of the plan is entitled to a 31-day extension of coverage for self only, self plus one, or self and family without contributions by the enrollee or the Government. During this period he or she is entitled to exercise the right of conversion. OPM...

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Reinstatement of Enrollment After Conversion

Termination of Erroneous Enrollment

Temporary Continuation of Coverage

Eligibility