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COBRA Premium Reduction
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COBRA Premium Reduction
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I am trying to get a clearer definition of "involuntaty termination" as it relates to American Recovery and Reinvestment Act of 2009 provision for COBRA premium reductions.I called EBSA and they say t
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Forums » Topic Forums » Benefits & Compensation » COBRA Premium Reduction
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COBRA Premium Reduction
posted at 3/12/2009 9:30 AM EDT
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Posts: 323
First: 6/15/1999 Last: 9/9/2011 |
I am trying to get a clearer definition of "involuntaty termination" as it relates to American Recovery and Reinvestment Act of 2009 provision for COBRA premium reductions.I called EBSA and they say they are still "refining" interpretations of the law, but believe it to be any employer initiated termination. I am in some debate with a director who believes this provision is limited to those employees who lose their jobs due to lay offs and downsizing and those reductions in force associated with the current economic down turn. I am not so sure. Also, we have some debate as to whether an employee who cannot return to work after FMLA is exhausted is voluntary or involuntary. What is the current discussion on this provision? |
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COBRA Premium Reduction
posted at 3/12/2009 12:02 PM EDT
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Posts: 2442
First: 2/12/2000 Last: 9/14/2011 |
we have some debate as to whether an employee who cannot return to work after FMLA is exhausted is voluntary or involuntary. What is the current discussion on this provision?
It would depend on the facts. why is the person not returning? If it is a "valid" medical reason but they ran out of job protection rights, I do not see how this could be described as voluntary. |
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COBRA Premium Reduction
posted at 3/12/2009 1:09 PM EDT
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Posts: 2442
First: 2/12/2000 Last: 9/14/2011 |
[quote]
On 2009-03-12 16:10, sbnonprof wrote: I agree re: the expiration of FMLA protection. What about termination for poor performance or policy infractions? [/quote] Those are clearly involuntary. Volunaary only applies when the employee resigns or just does not return to work. |
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COBRA Premium Reduction
posted at 3/13/2009 3:45 AM EDT
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Posts: 323
First: 6/15/1999 Last: 9/9/2011 |
Again, I am in agreement with your interpretation. I do know that we are not required to even offer COBRA to employees discharged for "gross misconduct" - and to me (for my agency), that would be those infractions noted in the policy manual to result in immediate discharge.
So now my question is: for those employers out there who have already moved to notify eligible employees of the premium reduction option, what kind of response have you had? |
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