Change of Status for Administrators
During the plan year a participant may change their elections for the current year.
The only way a participant would be allowed to change their election is if they had a change of status, which corresponds with a change in election.
The following is basic information to help you understand status changes for participants. This information is a basic overview of a very complicated subject. If after your review of this information, you would like to speak to someone personally, please feel free to give us a call at:
(616) 456-7908 or 1-800 968-FLEX (3539)
Another option is to visit CHANGEOFSTATUS.COM. This is a more in-depth web site, which may be able to help you.
The IRS defines change in status as:
- Change in participant’s legal marital status – including marriage, divorce, death of a spouse, legal separation, and annulment.
- Change in number of dependents – including birth, adoption, placement for adoption, and death.
- Change in employment status – Any of the following events that change the employment status of the participant, the participant’s spouse or the participant’s dependent would qualify: a termination or commencement of employment, a strike or lockout, a commencement of or return from an unpaid leave of absence, and a change in worksite.
- Dependent satisfies (or ceases to satisfy) dependent eligibility requirements – an event that causes the dependent to satisfy or cease to satisfy the requirements for coverage due to attainment of age, gain or loss of student status, marriage or any similar circumstances.
- Residence change – a change in the place of residence of a participant, spouse or dependent (if the residence change affects the participant’s eligibility for coverage).
There are 3 requirements which must be met in order for a participant to change his/her benefit elections as a result of change in status:
- A recognizable Change in Status must have occurred (please note the list above for recognizable changes is status)
- The change in election must be consistent with the change in status.
- The Change in Status form must be submitted within 30 days of the event of the status change.