FAQs For Reservists Being Called To Active Duty |
I am being called to active duty
and have questions about my employer provided pension and health benefits.
Where can I get more information about my benefits? My family had health coverage through my employer when I was called
for active duty in the military. What are my rights to health
coverage now? In addition, two laws protect your right to continue health coverage under an employment-based group health plan. The Consolidated Omnibus Budget Reconciliation Act (COBRA) provides health coverage continuation rights to employees and their families after an event such as reduction in employment hours. The Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA) is intended to minimize the disadvantages that occur when a person needs to be absent from civilian employment to serve in the uniformed services. Both COBRA and USERRA generally allow individuals called for active duty to continue coverage for themselves and their dependents under an employment-based group health plan for up to 24 months. If military service is for 30 or fewer days, you and your family can continue coverage at the same cost as before your short service. If military service is longer, you and your family may be required to pay as much as 102% of the full premium for coverage. You should receive a notice from your plan explaining your rights. Finally, another law known as the Health Insurance Portability and Accountability Act (HIPAA) may give you and your family rights to enroll in other group health plan coverage if it is available to you (for example, if your spouse's employer sponsors a group health plan). You and your family have this opportunity to enroll regardless of the plan's otherwise applicable enrollment periods. However, to qualify, you must request enrollment in the other plan (for example, your spouse's plan) within 30 days of losing eligibility for coverage under your employer's plan. After special enrollment is requested, coverage is required to be made effective no later than the first day of the first month following your request for enrollment. If you are on active duty more than 30 days, coverage in another plan through special enrollment is often cheaper than continuation coverage because the employer often pays a part of the premium. For more information on the interaction of COBRA and HIPAA, see IRS Notice 98-12: Deciding Whether to Elect COBRA Health Care Continuation Coverage After the Enactment of HIPAA. Note: When considering your health coverage options, you should examine the scope of the coverage (including benefit coverage and limitations, visit limits, and dollar limits), premiums, cost-sharing (including co-payments and deductibles), and waiting periods for coverage.
If one of my dependents wants to continue with a current doctor or
hospital, can I elect COBRA continuation coverage for only that
dependent?
My family was already on COBRA when I was called for active duty.
Can we keep our COBRA coverage?
My family and I had health coverage under my employer's group health
plan before I was called on active duty. We let this coverage
lapse while I was away and took military health coverage. When
I return to my employer from active duty, what are our rights to
health coverage under my old plan? Where can I get more information on COBRA,
HIPAA, and USERRA? You may also call EBSA's Toll-Free Employee & Employer Hotline number at 1.866.444.EBSA (3272) to request one or more copies of the publications or to speak with a benefits advisor. If you still have questions about your health rights or options, you may also contact us by email. Additional health information for military personnel and their families is also available at: For information on USERRA, contact the Department of Labor's Veterans' Employment and Training Service (VETS) office nearest you. You can also visit the USERRA Employee/Employer Advisor on the Internet. This interactive program has been designed to answer questions about the rights and responsibilities for both employees and employers.
Will my period of active duty be considered a break in service with my employer and impact my eligibility to participate in my employer's retirement
plan or my vesting or benefit accrual under the plan?
While I am on active duty is there a requirement for my employer to continue to make employer contributions to my 401(k) plan?
I am a participant in a 401(k) plan. While I am on active duty,
may I give my spouse or another individual the authority to change my
investment allocations through a power of
attorney or other legal document? Can that individual also apply for a
participant loan or hardship withdrawal on my behalf?
I have heard that
members of the uniformed services can participate in
the Thrift Savings Plan that the federal government has for civilian
employees. Where can I get information about that? Because the TSP record keeper must maintain separate accounts for civilian and uniformed services participants, participants who are both Federal civilian employees and uniformed services members (i.e., reservists) may have two separate accounts. If you have two accounts, you will need to review information about your accounts separately in the civilian and the uniformed services sections of this Web site. A booklet entitled “Summary of the Thrift Savings Plan for the Uniformed Services” is available on the TSP Web site. Under
the Soldiers' and Sailors' Civil Relief Act, creditors are required to
drop interest charges down to 6% on debt owed by those called to
active duty. Does this apply to a loan from my pension plan? If I
prefer that the interest rate remain higher so that I can accumulate
more money in my pension plan, is the plan administrator required to
comply with the Soldiers’ and Sailors’ Civil Relief Act and
unilaterally reduce the rate? |
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