Family Status Changes & Section 125
Family Status Change (FSC)
You have 30 days from the date of the qualifying event to request a change to your insurance. If you fail to request your change within 30 days of the qualifying event, your request will be denied!
If one or more of the following changes in status occur, you may revoke your old election during the plan year and make a new election, provided that both the revocation and new election are on account of and correspond with the change in status (as described below).
- A change in your legal marital status (such as marriage, legal separation, annulment, divorce or death of your spouse).
- A change in the number of your dependents for tax purposes (such as the birth of a child, adoption or placement for adoption of a dependent or death of a dependent).
- Any of the following events that change the employment status of you, your spouse or your dependent that affects benefit eligibility under a cafeteria plan: Termination or commencement of employment; a commencement or return from an unpaid leave of absence; a reduction or increase in hours of employment; or any similar change which makes the individual become (or cease to be) eligible for a particular employee benefit.
- An event that causes your dependent to satisfy or cease to satisfy an eligibility requirement for a particular benefit.
- A change in your, your spouse's or your dependent's place of residence outside of the service area of a particular insurance plan.
- Court ordered coverage. If a judgment, decree or order, resulting from a divorce, separation or custody change, requires your dependent child be covered under this plan, you may change your election to provide coverage for the dependent child.
Section 125 'Premium Only' Cafeteria Plan
Effective January 1, 1990, Volusia County Schools established an Internal Revenue Service Code Section 125 Cafeteria Plan. Section 125 permits employees to pay health, dental, vision and life insurance premiums with pre-tax dollars. This means the premiums are taken from gross pay before Withholding, Social Security, and Medicare taxes are computed. As a result, the employee may have more take-home pay. Enrollment in the Flex Plan is automatic when you are hired. Therefore, unless you have 'opted out' of the program you are currently enrolled and are receiving this tax advantage. Example - For an employee who makes $1,500.00 gross income per month and has health deductions totaling $250.00, the difference is as follows:
Without a Section 125 Plan
With a Section 125 Plan
The monthly increase in take home pay under a section 125 plan is $56.62.
The annual increase in take home pay under a section 125 plan is $679.44.
Section 125 stipulates that you may make changes to a Cafeteria Plan benefit only during an annual enrollment period or if you have an appropriate Family Status Change (e.g., marriage, divorce, birth, adoption, death of a spouse or dependent, or change in benefits due to your employment or your spouse's employment). See Family Status Changes for more information.
Frequently Asked Questions
If an employee is eligible for a family status change, when will the change be effective?
The change will be effective the first of the month based on the legal documentation provided by the employee.
After the employee submits the change(s), how and when will the employee see the effect(s) of the change?
All family status changes are processed within 10 working days of receipt. The employee will receive a calculation worksheet showing the date the change is effective, the check date the change will appear in, the arrearage or overage and the new per check deduction. (See insurance rate schedule for monthly and per check premiums.)
If an employee is not eligible under the qualifying event rules, when will they be able to make a change?
Without a qualifying event, an employee can make changes to their coverage only during the Annual Enrollment period which is held once a year. No legal documentation is required during this time period.
Can an employee change from one plan to another plan at any time during the year?
No. The only time an employee can change from one plan to another is during the annual enrollment period - unless the employee moves out of the service area of their plan.
If the new deduction appears on the employee's paycheck, does that mean the change is effective?
No. The effective date is indicated on the calculation worksheet sent to the employee. Payroll deductions only insure that the employee will pay enough premiums to cover the 12-month plan year (October 1 to September 30).
What if the employee fails to request their changes within the 30 days allotted by the regulations?
The request would be denied and the employee would have to wait until annual enrollment to make the change.
If you have any additional questions or need a set of Family Status Change forms, please feel free to email the Insurance & Employee Benefits Department.
Adoption Benefits for Eligible Applicants
Please review the attached document as provided for by Section 409.1664, Florida Statutes.