VEChannel Event Profile

Key COBRA Concerns Regarding the "Use It or Lose It" Rule

On May 18, 2005, the IRS issued new rules reflecting a significant change to the "use it or lose it" rule for cafeteria plans. Under this twentyyear old rule, cafeteria plan participants had to "use" all of their cafeteria plan pretax amounts in applicable health and dependent care flexible spending accounts (FSAs) based on claims incurred through the end of the plan year or else unused amounts are "lost" (forfeited). Although these new rules have been wellreceived, administrators are beginning to realize that implementing them may not be as easy as it seems particularly when it comes to COBRA administration for health FSAs. Attend this audio conference and learn: What are the COBRA exceptions for health FSAs and how are those exceptions affected if a plan implements a "grace period" under the new rules? Does the "grace period" have to be extended to COBRA qualified beneficiaries? What to do if COBRA qualified beneficiaries dont elect COBRA coverage How does the new "grace period" affect dependent care FSAs? How careful plan drafting can help avoid some of the new pitfalls created by the grace period rule ...youll also receive examples of plan language that can help administrators implement a grace period without creating more problems for plan administrations. Plus, 30 minutes after the presentation will be set aside for an interactive Q&A session. Listen in and get the chance to ask the speaker your specific questions! About Your Speaker Paul Hamburger, a partner in the law firm of McDermott Will & Emery LLP and head of the D.C. Employee Benefits Practice is a nationallyrecognized COBRA expert. Paul has authored numerous books and has been a featured speaker on COBRA issues throughout the country for more than ten years.

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