Employee Termination

When an employee terminates during the Plan Year, several steps should be followed.

If the terminating employee has pre-tax benefit elections through the flex plan, a Termination Notification Form should be completed and returned to ProBenefits promptly.

If the terminating employee has a Flexible Spending Account (and especially if he/she has a Flex Debit Card), it is essential that this form be returned to ProBenefits quickly to avoid errors in reimbursement.

Medical/Dental/Vision Care FSA Participants

• Provide Election Notice (for Medical FSA only) if you are a COBRA-compliant employer. (See our COBRA Compliance section.)
• Provide a Certificate of Creditable Coverage (for Medical FSA only) if your Flex Plan qualifies under HIPAA as requiring issuance of such a "CCC" to terminating employees. (See our HIPAA Compliance section.)
• If you are a COBRA-compliant employer, offer the employee an opportunity to use the flex plan to pre-pay COBRA continuation premiums from the final paycheck on a pre-tax basis.

If there are questions about how to handle flex plan benefits upon termination of employment, please feel free to contact us.