Ascentis HR & Payroll
  JULY 2010
     
In this issue Keeping Your Plan's Grandfather Status COBRA Subsidy Eligibility Period Expires
All About Interview Questions DOL Releases Model Notices
COBRA Subsidy Widely Used Applications for Early Retiree Reinsurance
     
 

COBRA Subsidy Eligibility Period Expires - ARRA Notices No Longer Apply

On June 1, 2010, the eligibility period to qualify for COBRA premium reduction under ARRA (as extended by the Continuing Extension Act of 2010) expired. Consequently, employers and plan administrators are not required to provide subsidies for COBRA premiums to workers terminated on or after June 1, 2010, unless and until a further extension of the ARRA COBRA subsidy is enacted.

Model Notices for Use On or After June 1, 2010

Employers and administrators should note that a further extension of the COBRA premium reduction under ARRA may still occur. However, with no further extensions, employers and administrators should use the Model General Notice and Model Election Notice provided by the DOL, for workers who are terminated on or after June 1, 2010. Remember, involuntary terminations that occurred at any time from September 1, 2008, through May 31, 2010 may have been qualifying events entitling such terminated workers to COBRA premium reductions and applicable notices. Individuals are encouraged to seek assistance regarding Notice Requirements by calling the Employee Benefits Security Administration toll-free at 1-866-444-3272.


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