Status Change Issue

[FredZeppelin]

What is the name of your state? New Jersey

I am trying to change my benefits at my company, which I am allowed to do following a status change. My change in status is due to my wife losing her job. Upon trying to change my enrollment for some benefits being offered by my company, my company requested documentation/verification of the status change (wife no longer being employed, and the date effective). I tried for three weeks to get a document from her old boss (the company she worked for was just her, the owner, and another guy), including emails, faxes, voice mail, and even stopping by his home-office - all to no avail. Every communication I made stated the simple reason and the fact that I would even draw up the letter for him to sign, and bring it to him personally to make it as easy as possible. He wouldn't return my calls at all. My wife finally got in touch with him somehow and he vowed to not provide her with such a letter and that he didn't have to. Now my company will not allow me to use this status change to amend my benefits, and I am given the reason that the IRS requires documentation of a change-in-status within 30 days of the change.

Is my company entirely hamstrung here, and even if they wanted to help me out, they couldn't? I made them aware of my situation before the 30 days ran out and explained that I didn't think I'd be able to get the document/verification they needed. They told me that they tried to contact him also to no avail (I had told them that they would probably not have any more luck than I did). Does the IRS not allow for this sort of circumstance? I'd think that this is not the first angry ex-employer, but simply question my company's ability to do anything about it. I am only making sure here because its a legal plan that I was trying to enroll in, and I really needed it at this point.

Thanks in advance for any and all help, for I appreciate what all is done here, especially at the price...What is the name of your state?

 

[mlane58]

Bottom line is it is your sole resonsibility to obtain the letter or documentation from your spouse's ex-company. Your compnay isn't legally responsible to obtain anything. It is not the IRS (They are only responsible for the tax provisions), but the Department of Labor that enforces ERISA. Speak with your benefits administrator and see what other avenues can be explored to obtain some of proof that your spouse lost their benefits.

 

[FredZeppelin]

Bottom line is it is your sole resonsibility to obtain the letter or documentation from your spouse's ex-company. Your compnay isn't legally responsible to obtain anything. It is not the IRS, but the Department of Labor that enforces ERISA. Speak with your benefits administrator and see what other avenues can be explored to obtain some of proof that your spouse lost their benefits.

I appreciate the advice. They've suggested something regarding her benefits, but she had none. My company has stated that since the 30 days have passed, there is nothing that they can do, so I don't know how much it will actually be worth pursuing - which is part of my question now. If I were at all able to get any acceptable proof, would they be able to back-date anything or help me in any way with the 30 day period expiring?

Thanks once again.

 

[mlane58]

That will be up to your administrator if they want to make an exception. I can't imagine that because of the difficult time you had obtaining any documented proof of your spouse's loss of coverage that they wouldn't make an exception. It would depend on whether your compamny is self insured or fully insured.

 

[FredZeppelin]

That will be up to your administrator if they want to make an exception. I can't imagine that because of the difficult time you had obtaining any documented proof of your spouse's loss of coverage that they wouldn't make an exception. It would depend on whether your compamny is self insured or fully insured.

Are companies allowed to make exceptions, or is that governed by the Department of Labor and the DOL's regulations?

 

[cbg]

That depends. If there is a Section 125 in place (if her portion of the premium is taken pre-tax, or if she has the option of having her portion of the premium taken pre-tax, then there is a Section 125 in place) then any exception that is made will violate the law and put the plan itself in jeopardy. (Trust me, we're going through this right now with the plans I work with. ). If there is no Section 125 in place, then the company may make an exception but are not required to do so.