Events that change an employee's legal marital status, including the following: marriage death of spouse divorce legal separation and annulment. The following events are changes in status for purposes of this paragraph (c): (ii) The election change satisfies the consistency rule of paragraph (c)(3) of this section. (i) A change in status described in paragraph (c)(2) of this section occurs and A cafeteria plan may permit an employee to revoke an election during a period of coverage with respect to a qualified benefits plan (defined in paragraph (i)(8) of this section) to which this paragraph (c) applies and make a new election for the remaining portion of the period (referred to in this section as an election change) if, under the facts and circumstances. ( E's marriage to F is also a change in status under paragraph (c) of this section, as illustrated in Example 1 of paragraph (c)(4) of this section.) Since no retroactive coverage is required in the event of marriage under section 9801(f), E's salary reduction election may only be changed on a prospective basis. (ii) M's cafeteria plan may permit E to change E's salary reduction election to reflect the change to family coverage under M's accident or health plan because the marriage would result in special enrollment rights under section 9801(f), pursuant to which an election of family coverage under M's accident or health plan would be required to be effective no later than the first day of the first calendar month beginning after the completed request for enrollment is received by the plan. Employee E wants to revoke the election for employee-only coverage under M's cafeteria plan, and is considering electing family health coverage under M's plan or obtaining family health coverage under N's plan. F's employer, N, offers health coverage to N's employees, and, prior to the marriage, F had elected employee-only coverage. Employee E marries F during the plan year. Before the beginning of the calendar year, Employee E elects employee-only health coverage under M's cafeteria plan. (i) The employer plans and permissible coverage are the same as in Example 1. Thus, under paragraph (c) of this section, M's cafeteria plan could permit A to elect family coverage prospectively in order to cover B, C, and D for the remaining portion of the period of coverage.)
( A's adoption of D is also a change in status, and the election of family coverage is consistent with that change in status.
The increased salary reduction is permitted to reflect the cost of family coverage from the date of adoption. (ii) M's cafeteria plan may permit A to change A's salary reduction election to family coverage for salary not yet currently available. Employee A satisfies the conditions for special enrollment of an employee with a new dependent under section 9801(f)(2), so that A may enroll in family coverage under M's accident or health plan in order to provide coverage effective as of the date of D's adoption. Within 30 days thereafter, A wants to revoke A's election for employee-only health coverage and obtain family health coverage for A's spouse, C, and D as of the date of D's adoption. During the year, A and B adopt a child, D. In accordance with M's cafeteria plan, Employee A elects employee-only health coverage before the beginning of the calendar year. M's employee, A, is married to B and they have a child, C. M also maintains a calendar year cafeteria plan under which qualified benefits, including health coverage, are funded through salary reduction. Under the plan, employees may elect either employee-only coverage or family coverage. (i) Employer M provides health coverage for its employees pursuant to a plan that is subject to section 9801(f).
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