Benefits After Returning to Work

As if returning to work wasn't complicated enough with our "new normal", benefits can add a new layer of headache. Check out this quick guide to help you determine how to proceed. Scroll to the header that describes how employment and benefits were handled at your company originally.

Long Furlough + Terminated Benefits

If your company laid off employees and terminated their benefits for longer than 30 days, the newly "rehired" employees are eligible for a full open enrollment. Considerations:

  • Employees can make benefit changes (switch plans, add dependents, etc) just like any other open enrollment.

  • The eligibility waiting period (as described by your new hire policy) may not apply. Simply, employees may be able to jump directly back onto the plan. Check with your carrier to confirm.

short furlough + terminated benefits

If your company laid off employees and rehired them within 30 days, the employees will return the same benefits they elected before the furlough. They cannot add dependents or change coverages unless a different qualifying life event occurs.

furlough + continued benefits

If your company continued benefits during furlough, the question you need to confirm is the insurance premium payment method. Your company likely gave you one of the following options:

  1. prepay for your premiums

  2. pay for your premiums monthly during furlough

  3. pay for premiums upon return

  4. company will pay for your portion of the premium.

While all of us would love the fourth option, it's likely you're experiencing one of the first three.

so... what about fsas?

If an employee is terminated and rehired after 30 days, then they can have a completely new election up to the max limit. There's no need to catch up on old contributions, as their election is seen as an entirely new benefit period.

If they are rehired within 30 days, then employees will have to continue their previous election and catch up on their contributions (if necessary).