Employee Benefit Enrollment Deadlines- Not Arbitrary
by Karen Kehr, MS
Health & Welfare Manager, American General Corporation

Well it is getting to be that time of year again at most mid to large size companies- the dreaded benefits annual enrollment. This annual exercise may seem like some kind of form of modern day employee torture developed by corporate managers with too much time on their hands. But, the reality is companies that offer benefits on a pre-tax basis are required by federal law to allow employees to elect/change benefits once a year. So, keep your eyes open for information on plan enrollment and changes around September/October for companies' who begin their benefits plan year January 1.

In subsequent articles, more detailed information will be provided on how to review and select the best options for you and/or your family. For now, you need to know the general rules that apply to making elections/changes. The term "rules" is used as that is how the provisions set by companies in tandem with applicable tax codes and federal/or state laws may feel to you as an employee. You need to be aware of the rules so that you don' t end up with default or worse yet "no coverage" in the next millennium.

Annual enrollment is a set time frame, generally 2-3 weeks. Most important is that a deadline is set and you MUST make your elections/changes by the deadline. If you do not make this deadline, you may not have coverage for the next year. It is similar to the annual tax filing deadline of April 15; you must adhere to it or be faced with stiff penalties. It may seem to you that this deadline is flexible and yes you have the right to appeal to your company if you miss the deadline. However, as long as the company provides written information to you about the deadline and changes made to the current plan, you are responsible for taking the appropriate action.

Remember the deadline is not flexible. You may write the company plan administrator to explain your reasons for missing the deadline, known as an appeal. As a benefits manager, I have seen some real whoppers as excuses. Believe it or not, I have even seen the ole "my dog ate my benefits packet (homework). Some of these excuses may very well be personally legitimate but the company is required by the same laws as mentioned above to be consistent in administering the plan for all participants. You may be the most likeable employees or the longest term but the answer will be no unless the company was in error.

Briefly, there is one exception to making elections/changes outside of the annual enrollment. That exception is due to change in family status. A family status change means life events such as birth or adoption of your child, marriage, divorce etc. In these cases, you have 30 days to make changes to coverage. The 30 days is also a real deadline. Please be advised NOT to miss it.

All sarcasm aside, it really is far from funny when you and/or your family is left without benefits coverage. The coverage protects you from serious financial and hardship and provides peace of mind. So take the time to review your companys' rules for enrollment- IT IS WORTH THE TIME.

The information in this article is general, consult your companys' benefits department for specific information regarding your plan. Any questions on taxes and/or federal laws on benefit plans should be referred to a CPA or attorney.

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