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Matthew Costello, Senior Benefits & Work Life Program Manager Absent US and Benefits/Termination of Coverage
Matthew Costello, Senior Benefits & Work Life Program Manager
Absent US and Benefits/Termination of Coverage
Absent US and Benefits/Termination of Coverage
Absent-Uniformed Services (US) and Separation (US)
Review USERRA
Federal Employees Health Benefits
Explain Contingency vs. Non-Contingency Operation
Federal Employees Group Life Insurance
Additoinal Federal Benefits
Counseling
Questions & Answers
(2)
OBJECTIVES
Absent US and Benefits/Termination of Coverage
(3)
Leave Status when placed into Active Duty
1st day of the start of the Military Order
Placed in Absent – US; or
Separated from employment with return rights under USERRA = Separation - US
Absent-US vs Separation-US
4
– eligible to make elections regarding benefits including: FEHB, FEDVIP and FSA
– civil service death and disability benefits continue during period of active duty
– can request lump sum payment of leave
– health and life insurance coverage may continue as though in a non-pay status
– can request refund of retirement contributions
– can request TSP withdrawal (penalties may apply)
– can request lump sum payment of leave
6/26/2019
Benefits Affected
UNIFORMED SERVICE EMPLOYMENT AND REEMPLOYMENT RIGHTS ACT
ABSENT - US
• When an employee is absent to perform duty with the uniformed services.
• 5 year protection
• Has reemployment rights under USERRA – 38 U.S.C. Chapter 43
(5)
Employer Obligations
(6)
Agencies must inform employees of their USERRAentitlements, obligations, benefits, and appeal rights
In addition agencies must:- Receive notification of upcoming uniformed service- Approve the request; agencies must let them go- Treat service as if on (non-paid) leave or furlough- Allow employees to use accrued leave during absence- Promptly reemploy upon completion of service- Place returning employee in position he/she would have
been in if continuously employed
Employee Responsibilities
Notify the employer of upcoming uniformed service and provide official documentation when it becomes available
Provide oral or written notification to manager or human resource person of intent to return from uniformed service
Timely return to work or application for reemployment based on length of absence and timeliness of application
Must be discharged under honorable conditions
Absent US and Benefits/Termination of Coverage
Federal Employees Health Benefits (FEHB) under Absent – US
Employees must elect to Terminate, *Cancel or continue FEHB coverage during the military service period
(8)
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FEHB
6/26/2019
Employee Elected to Terminate FEHB
Employee Elected to Cancel FEHB
Termination is not a break in coverage and must be in
writing
Cancellation is considered a break in coverage; employee
must submit an SF2809 electing to cancel
Effective date of termination is effective date of AUS
Effective date is on the first day of absence
Absent US and Benefits/Termination of Coverage
FEHB during a NON-CONTIGENCY Operation
FEHB Coverage for up to 24 months
Employees are responsible for their share of the premium for first 12 months and both portions for the last 12 months. (plus 2%)
The employee must:
Be enrolled in an FEHB plan
Be a member of a Reserve component
Be called to duty in support of contingency operation
Be placed on Absent- US or Separation – US
Serve on active duty for more than 30 consecutive days
(10)
Absent US and Benefits/Termination of Coverage
FEHB during a CONTIGENCY Operation
FEHB Coverage for up to 24 months
Federal agencies may cover 100% of employee’s FEHB premiums during all 24 months
The employee must:
Be enrolled in an FEHB plan
Be a member of a Reserve component
Be called to duty in support of contingency operation
Be placed on Absent- US or Separation – US
Serve on active duty for more than 30 consecutive days
(11)
FEHB Contingency or Non-Contingency
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Beginning Date of Continued FEHB Coverage
Duration of Coverage
Statutory Authority (Coverage)
Status of FEHB Premium Payment
Statutory Authority (Premiums)
Period of continued FEHB begins on date employee is placed on LWOP or separated to perform
active duty
24 Months P.L. 108-375 (NDAA FY 2005 section 1101
amended 5 U.S.C. section 8905a(b)3) and (e)(1)C))
Agency may pay full premium for a period of no longer than 24 mths
P.L. 108-375 (NDAA FY 2005 section 1101
amended 5 U.S.C. section 8906a(b)3) and (e)(3)C))
Beginning Date of Continued FEHB Coverage
Duration of Coverage
Statutory Authority (Coverage)
Status of FEHB Premium Payment
Statutory Authority (Premiums)
Period of continued FEHB begins on date of employee’s absence
from civilian position
24 months P.L. 108-454 Veterans Benefits Improvement Act of 2004 amended title 38
U.S.C. section 4317 (a)(1)(A)(USERRA)
Employee responsible for his/her share of premium for first 12 mths and 102% of premium after 12 mths
up to 24mth limitation
P.L. 108-454 Veterans Benefits Improvement Act of 2004 amended title 38
U.S.C. section 4317 (a)(1)(A)(USERRA)
Employees Called to Active Duty Under Title 10 in Support of a Contingency On or After 9/14/2001 (BAL 06-401)
Uniformed Service Under Title 32 or Title 10 NOT in Support of a Contingency Elections Made On or After 12/10/1994
6/26/2019
FEHB Contingency or Non-Contingency
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Non-Contingency permits:‒ option to pay on a continuing basis during absence, or
‒ option to incur debt and pay upon Return to Duty (RTD)
A move from Contingency to Non-Contingency:‒ Agency stops paying employee share of premiums
‒ If on Absent Uniformed Service (AUS) is less than 365 day, employee can incur a debt or pay on continuing basis
‒ If AUS is more than 365 days, employee must pay full premium (102%)
6/26/2019
FEHB & Return to duty
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FEHB Coverage Terminated FEHB & Use of Transitional Tricare
If FEHB Coverage was Cancelled
Is automatically reinstated the day employee exercises
reemployment rights
Employee may delay automatic reinstatement or enrollment of FEHB to
take advantage of transitional TRICARE
Employee must submit SF 2809 electing to enroll in FEHB 60 days following reemployment, or after
transitional TRICARE ends
Employee has 60 days to make any enrollment
changes following reemployment
Waiver must be in writing (BAL 05-402) and
provide date of reinstatement
Effective date of coverage is the first day of the pay period following the pay
period in which employing agency receives SF 2809
6/26/2019
Federal Employees Group Life Insurance (FEGLI)
Applicable to Active duty: Contingency and Non-Contingency
Agency pays both government and employee costs for the first 12 months
Terminates after 12 months with 31 days extension
Eligible to convert to a non-group plan after termination
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Additional FEGLI coverage
BAL 08-203, additional continuation of FEGLI for employees called to Active Duty
Must submit election in writing prior to end of first 12 months
If elected, FEGLI will continue beyond 12 months for a total of 24 months
Employee must pay both Agency and employee costs for the additional 12 months
Terminates after 24 months with 31 days extension
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Duncan Hunter Act
P.L. 110-417, Duncan Hunter National Defense Authorization Act for Fiscal Year 2009 became effective October 14, 2008
Affects civilian employees eligible for FEGLI who are deployed in support of a contingency operation as defined by Section 101(a) (13) of title 10
Does not apply to employees called to active duty as a member of a reserve component of the armed forces
(17)
FEGLI & Return to duty
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Employee on AUS and FEGLI Terminated
Employee on Separation-US and FEGLI Terminated
Upon RTD and pay status, FEGLI reinstated back to prior coverage
Break in service less than 180 days FEGLI reinstated to prior
coverage
Not eligible to make any elections to increase coverage; may elect to decrease or waive coverage at
anytime
Break in service more than 180 days, FEGLI reinstated to prior coverage AND eligible to make
new election within 60 days
6/26/2019
Federal Employees Dental and Vision Program (FEDVIP)
Continuation of coverage is permissible under Absent Uniformed
Service or Separation-US status as long as the employee remains FEHB eligible. Employee must notify BENEFEDS of his/her choice of one of the following two options:
Continue coverage, or
Cancel coverage
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FEDVIP
If coverage continues:
Coverage will continue as long as the premiums are paid; these premiums will be post-tax
BENEFEDS will bill the employee directly
If premiums are not paid, coverage will end retroactive to the end of the pay period in which premiums were last paid
If coverage is cancelled:
Coverage will end the last day of the pay period in which BENEFEDS is notified of the cancellation
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6/26/2019
FEDVIP & RTD
If employee’s FEDVIP was cancelled:
60 days upon RTD to enroll
Enrollment through BENEFEDS
Effective date of coverage is the first day of the pay period following the pay period in which BENEFEDS processes the enrollment
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6/26/2019
Flexible Spending Accounts (FSA)
Employee on AUS enrolled in a Health Care FSA (HCFSA) or Limited Expense HCFSA (LEX HCFSA) are eligible to maintain coverage as a Qualifying Life Event (QLE)* if:
Called to active duty for a period of 180 days or more, or indefinite period of time
Employees may make changes to allotments for the benefit period by notifying FSAFEDS 31 days prior to or 60 days after the date of AUS
*Download form at www.fsafeds.com to show proof of QLE
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6/26/2019
Health Care FSA
Prepayment of allotment(s) or increase payroll deductions prior to LWOP
Full access to FSA account for Benefit Period
Freeze Account
Reimbursements only for expenses incurred up to Absent Uniformed Service (AUS)
“Catch-up” allotments resume upon RTD and expenses incurred during AUS are eligible for reimbursement
Cancel Coverage
Reimbursements only for expenses incurred up to AUS
QLE Called to Active Duty Military
Reduce coverage to what has already been deducted from pay and or reimbursed
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If enrolled in a HCFSA or LEX HCFSA employees can:
6/26/2019
Heroes Earnings Assistance and Relief Act (HEART)
Public Law 110-245, Section 114 established the HEART
HEART permits employers to offer qualified reservist a taxable distribution (QRD) of their unused FSA, HCFSA or LEX HCFSA balance
QRD can be requested during the period beginning with the date of the order or call to active duty and
Ending on the last day of the grace period (March 15th)
Once FSAFEDS receives the request for QRD the account closes for that benefit period
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6/26/2019
Dependent Care FSA (DCFSA)
In case of Absent Uniformed Service:
Prepayment or increase payroll deductions prior to LWOP, Freeze Account, Cancel
Full access Account balance available for expenses incurred until the end of
the Benefit Period or until account balance is used up, whichever is first*
QLE Called to Active Duty Military Reduce coverage to what has already been deducted from pay
and or reimbursed
* Expenses must meet IRS guidelines
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HCFSA & DCFSA
In case of Separation-US:
FSA account(s) will be terminated:
HCFSA & LEX HCFSA
Expenses incurred prior to the date of separation are eligible for reimbursement up to account balance
DCFSA
Account balance available for expenses incurred until the end of the Benefit Period or until account balance is used up, whichever is first
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6/26/2019
FSA & RTD
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HCFSA frozen while on AUS, Upon RTD and pay status:
DCFSA frozen while on AUS, Upon RTD and pay status:
HCFSA & DCFSA cancelled due to AUS or
Separation-US:
Must notify FSAFEDS of RTD
Must notify FSAFEDS of RTD May reenroll within 60 days of RTD
FSAFEDS will recalculate missed allotments and
“catch-up” deductions for that calendar year
FSAFEDS will recalculate missed allotments and
“catch-up” deductions for that calendar year
Enrollment must be prior to October 1st
otherwise must wait for Open Season
Once deductions resume expenses incurred during Absent Uniformed Service
are eligible for reimbursements for that
Benefit Period
All expenses incurred are eligible for reimbursement
up to account balance
6/26/2019
Federal Long Term Care Insurance Program (FLTCIP)
If enrolled prior to active duty military service coverage continues as long as premiums are paid on current basis
While on active duty premiums may be made from the military account
May enroll at anytime using the full underwriting application process
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6/26/2019
FLTCIP & RTD
If employee’s FLTCIP coverage terminated because ofnonpayment or if cancellation requested:
Coverage may be reinstated within 12 months of termination date
Must reapply with full underwriting application
If insurable, coverage reinstated retroactive to termination date
Back premiums must be paid
Premiums will be the same as before termination (not based on new application age)
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6/26/2019
FLTCIP & RTD (con’t)
New FLTCIP enrollment opportunity:
Upon RTD following Separation-US AND break in service of at least 180 days AND position conveys coverage, may enroll using the abbreviated underwriting application
Enrollment must be within 60 days
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Thrift Savings Plan (TSP)
Suspend contributions in civilian TSP account
May elect to make contributions into military TSP account
Contributions into both civilian and military TSP account cannot exceed IRS deferral limit
HRO to complete TSP-41 to notify TSP of employee’s status
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TSP & RTD
Employee must ensure TSP contributions resume and are being deducted from pay
Eligible to make-up contributions
60 day limit to make request
make up contributions cannot exceed IRS deferral limit (combining both civilian and military TSP accounts)
2 times (and maximum 4 times) the length of the military service
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TSP & RTD (con’t)
TSP and FERS employees:
Agency automatic (1%) contributions and lost earnings deposited immediately upon RTD
Agency matching contributions based on contributions deducted from basic pay while performing active duty military service and lost earnings deposited upon return
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Reemployment Eligibility
To have restoration rights, the employee must:
Serve no more than a cumulative total of 5 years of service (exceptions are allowed for training and involuntary active duty extensions, to complete an initial service obligation of more than 5 years, and for other specified types of service)
Period of service cumulative with single employer, not period of absence
New Employer = New 5 year limit
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6/26/2019
Restoration of Positions
Non-disabled employees with less than 91 days of service must be restored
To the position they would have attained had the employment not been interrupted by uniformed service (Escalator Principle), or
To the position in which they were employed on the date of the commencement of service, but only if they are unable to perform the duties of the new (escalator) position acceptably after reasonable efforts
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6/26/2019
Restoration of Positions (con’t)
Non-disabled employees with more than 90 days of uniformed service
Agencies must restore the employee:
to the position they would have attained had the employment not been interrupted by uniformed service (Escalator Principle), (or a position of like seniority, status and pay), or
to the position in which they were employed on the date of the commencement of service (or a position of like seniority, status and pay), but only if they are unable to perform the duties of the new (Escalator Principle) position acceptably after reasonable efforts
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Timeframes for Restoration
Deadline for return to work, depends on duration of service
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Less than 31 days
31 to 180 days
181 days or more
Hospitalizationor
Convalescence
report for work beginning next regularly scheduled work day following release from service and the expiration of 8 hours after a time for safe transportation back to the employee’s residence
report or reapply within 14 days
report or reapply within 90 days
up to 2 years
Employees not in compliance with these return time periods may be subject to disciplinary action. Employees must be reemployed as soon as practicable on a case by case basis, generally with 14 days, but no later than 30 days after the agency receives application
6/26/2019
Documentation for Restoration
Agencies have the right to ask for documentation showing the length and character of the employee’s uniformed service and the timeliness of the application
Only required if service is 31 days or more
Proof of Honorable discharge - DD 214
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After Restoration
Employees may not be discharged (except for cause) for 1 year if they served more than 180 days
Employees may not be terminated or separated for 6 months if they served more than 30 days, but less than 181 days
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Absent US and Leave usage
Use of Paid Leave
while in
Absent- US
Accrued Annual Leave
under
5 U.S.C. 6304
Military Leave
under
5 U.S.C. 6323
Compensatory Time for Travel
under
5 U.S.C. 5550b
Sick Leave
under
5 U.S.C. 6307
(if appropriate under such service)
(40)
Military Leave
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5 U.S.C. 6323(a)
5 U.S.C. 6323(b)
5 U.S.C. 6323(c)
Provides 15 days/120 hours per fiscal year for active duty, active duty training, and inactive duty training performed by members of the Armed Forces, the Reserve or the National Guard
Provides 22 workdays per calendar year for emergency duty as ordered by the President, the Secretary of Defense, or a State Governor
Provides unlimited military leave to members of the National Guard of the District of Columbia for certain types of duty ordered or authorized under title 39 of the D.C. Code
5 U.S.C. 6323(d) Provides that Reserve and National Guard Technicians are entitled to 44 workdays of military leave for duties overseas under certain conditions
6/26/2019
Counseling Employees
• Use Uniformed Service checklist to ensure consistent counseling (signature of acknowledgement if possible)
• Upon notification, request supporting documentation (if possible)
• Review restoration rights
- time limits
- notification process
- appeal rights
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Counseling Employees (con’t)
• Encourage employees to review beneficiary forms:
• Unpaid Compensation (SF 1152)
• Retirement contributions (CSRS, SF 2808) (FERS, SF 3102)
• Federal Employees’ Group Life Insurance
(FEGLI, SF 2823)
• Thrift Savings Plan (TSP-3)
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Documenting Personnel Actions
Use a second legal authority when the action requires the citation of a specific law, Executive Order, or regulation
Generally for active duty in Support of a Contingency Operation
OPM published authorities for military contingencies.
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Documenting Personnel Actions
Employee’s choice:
Absent Uniformed Service vs. Separation-US
Nature of Action Codes Authority Codes
473 Absent Uniformed Service Q3K 5 CFR 353
Absent Uniformed Service QRD 5USC5538
353 Separation-US Q3K 5 CFR 353
Remark codes:
B66 FEHB
B72 FEGLI
M67 Forwarding address
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Return to Duty SF 50 Actions
Nature of Action Codes Authority Codes
292 Return to Duty (RTD) Q3K 5 CFR 353
Same second legal authority for AUS action
Reinstatement of benefits: FEHB, FEGLI
Reinstatement of retirement
Provide TSP election and Make-up contribution election
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6/26/2019
Absent US and Benefits/Termination of Coverage
(47)
Questions?
References
(48)
38 U.S.C. Chapter 43 – USERRA5 U.S.C. 6304 – Annual Leave5 U.S.C. 6323 – Military Leave5 U.S.C. 5550b – Compensatory Time for Travel5 U.S.C. 6307 – Sick Leave
