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31 days to make a "change in status" and 17 of these days they were closed

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chaley

Junior Member
I am a teacher in Texas. My school district will not let me out of my insurance.

My husband started a new job on November 29 (his insurance started that same day). He put our whole family on his insurance (much less expensive). I was off for Christmas break and upon returning to work, was told I had missed my 31 days. My argument... The district was closed from Dec. 16 - Jan. 1. They argue that if I had contacted them during this time, I would have been alright. I knew they were closed and did not contact them b/c I knew no one was working!

I have made complaints and met w/ an unbiased attorney and continue to be told "no". However, now I can go to the school board for my next level. I don't want to waste my time but really need the money. It's over $600 a month. My only option is to resign.
 


cbg

I'm a Northern Girl
If your premiums are being deducted on a pre-tax basis, you are wasting your time to pursue this as Federal law prohibits the employer from ceasing to take deductions once the 31 day (it's actually 30 days - they were being nice) has passed.

You had from November 29 till December 15 to notify them without any problems. If you had sent a letter during the time they were closed they would have been obligated to accept it even if they didn't see the letter till after the 31 day window was closed. I don't see any possible way for you to prevail on this. You're going to have a massive obstacle to overcome in explaining how it was impossible for you to provide them with any kind of notice until after the 31 day window had closed.
 

chaley

Junior Member
section 125

to: cbg

Thanks for the response.

I did sign up under section 125. They are not making it sound like that is the problem. They keep saying they have NEVER made any exceptions and if they start now they open themselves to lawsuits.

I think the fact they were closed should have some weight. Don't you?

chaley
 

AL HR

Member
cbg is correct. They do open themselves up to losing the sec 125 status if they make exceptions.

Even if they were closed, the paperwork would have been postmarked within the window, making it okay for them to make the change after the 30 days. Also, you had two weeks prior to the close to get it corrected.

This is one I doubt you could do anything about...
 

chaley

Junior Member
lesson?!

So, what is the lesson to be learned here? Don't sign up under section 125? I suppose I will never let this happen again but boy did I get screwed! I will be paying over $600 a month until August.
 

AL HR

Member
Not to sound harsh, but you weren't screwed, you got 30 days to make the change. Two of those weeks they were open and they would have accepted it after those two weeks if it would have been within the 30 days, as long as it was dated correctly.
 

cbg

I'm a Northern Girl
The lesson to be learned here is that when the law says you have 30 days, that means you have 30 days. The fact that they were closed for part of that time doesn't matter a whit. You had two weeks before they closed and a letter dated and postmarked during the period they were closed but within the 30 days BY LAW would have to have been accepted. Now, BY LAW, they cannot make exceptions, whether they are citing Section 125 or not.

They did not screw you, you screwed yourself.
 

chaley

Junior Member
5 days

Actually, I had 5 days to respond with a change of status.:) My husband nor I realized his insurance began the first day he started his new job. We received a letter on Dec. 8th stating that we were covered with his insurance. The last day of school was Dec. 15th. Most businesses do not close for such a long period of time and my first day back I went to fax the letter but was told to wait until the following day as "nothing would be done on the first day back".

I am getting the feeling, impression that my district COULD grant me what is mine but is choosing not to for fairness to others. I understand and respect this decision but I also would like for this matter to not happen to ANYONE, EVER AGAIN! Why can't something be written into the district's policy? This has caused me an enormous amount of stress, financial and physical and mental. No one has said I would be breaking the law by getting my insurance cancelled and if it is a law that would be broken, why aren't they saying that?
 

mlane58

Senior Member
You are not listenising! Your district cannot wright anything into policy to change it. federal law doesn't allow it. Look you had 31 days whether you want to accept that or not--not 5 days please! it won't change anything. Hopefully you have learn alesson, but I doubt it.
 

cbg

I'm a Northern Girl
Why can't something be written into the district's policy?

Because to do so would violate Federal law and result in the 125 plan being cancelled by the IRS.

You seem to think that because they aren't telling you that it's a Federal law, it must not be a Federal law. Well, guess what? It is.

I am getting the feeling, impression that my district COULD grant me what is mine but is choosing not to for fairness to others.

You are wrong. They cannot. If this is on a Section 125 plan, and you have said it is, your employer has NO options. Once the 30 days has elapses, they CANNOT allow you to cease your deductions without being in violation of the law. That answer is not going to change no matter how much of an argument you give us, or them.
 

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