CHANGE DUE TO CHANGE IN STATUS (PER IRS REGULATIONS)
The regulations permit a participant to revoke an existing election and make a new election for the remaining portion of the year due to certain events (change in status elections).

1. Cost Changes: If the cost of a health plan provided by a third party provider increases or decreases, the plan may automatically increase or decrease participant's contributions (premiums only). If the cost of providing dependent care changes outside the participant's control, the participant may change amounts in the Dependent Care Flexible Spending Account.  Cost change does not permit a change to the Healthcare Reimbursement Account.

2. Coverage Changes: If the coverage under a health plan is curtailed or ceases, the participants may revoke their elections and receive coverage under another health plan (premiums and increase/decrease of Health Care Flexible Spending Account consistent to change in coverage).

3. Changes in Family Status (subject to consistency rules as defined in number four below): A participant may revoke a benefit election and make a new election for the remaining portion of the plan year. Examples are:

a. Marriage, divorce, legal separation or annulment.

b. Change in number of dependents, including birth, adoption, placement for adoption or death of a dependent (including spouse)

c. Change in work schedule, including an increase or decrease in number of hours of employment by the employee, spouse or dependent. Includes a switch between full-time and part-time status, a strike or lockout, or commencement or return from an unpaid leave of absence.

d. The dependent satisfies or ceases to satisfy the requirements for unmarried dependents. Any event that causes an employee's dependent to satisfy or cease to satisfy the requirements for coverage. The event may be due to attainment of age, student status or any similar circumstances as proved under the accident or health plan under which the employee receives coverage.

e. A change in the place of residence or work-site of the employee, spouse or dependent that affects eligiblity for benefits. 

4. CONSISTENCY RULES: The flex plan election changes must be consistent with change in status. The change in status must result in the employee, spouse or dependent gaining or losing eligibility for coverage under either the flex plan or the accident and health plan of the spouse's or dependent's employer. In addition, the election change must correspond with the gain or loss of that coverage.

5. Separation from Service: If the employee revokes existing elections and terminates the receipt of benefits for the remainder of the plan year, then the employee is prohibited from making new elections should they return to service.

6. Cessation of Required Contributions: A benefit will cease to be provided if the employee fails to make the required premium payments with respect to the benefit.

IMPORTANT: When a participant revokes elections, only expenses incurred on or before the change date are eligible for reimbursements. Expenses incurred after the date of change will be eligible for reimbursement under the new election amount for the remainder of the Plan Year.