Your Compliance Edge

Election Changes and Significant Cost or Coverage Changes

Cost changes - - Automatic change

 If the cost of a qualified benefits plan increases (or decreases) during a period of coverage and, under the terms of the plan, employees are required to make a corresponding change in their payments, the cafeteria plan may, on a reasonable and consistent basis, automatically make a prospective increase (or decrease) in affected employees’ elective contributions for the plan.

Significant Cost Changes

If the cost charged to an employee for a benefit package option significantly increases or significantly decreases during a period of coverage, the cafeteria plan may permit the employee to make a corresponding change in election under the cafeteria plan.

FREE Labor Law Penalties
by Company Size Chart

Alerts you to the penalties associated with key federal laws such as
COBRA and discrimination.



Download HR360


Request a Demo 

or Log In