The director administers the premium conversion plan for
employees of the state of Iowa. The plan is permitted under IRC Section 125.
Pursuant to IRC Section 105, the plan is also an insured health care plan to
the extent that participants use salary reduction to pay for health or dental
insurance premiums. In accordance with IRC Section 79, the plan is also a group
term life insurance plan to the extent that salary reduction is used for life
insurance premiums. Administration of the plan shall comply with all federal
regulations and the Plan Document. For purposes of this rule, the plan year is
January I to December 31 of each year.
(1)
Employee eligibility.
All nontemporary employees who work at least 1040 hours per calendar year are
eligible to participate in the pretax conversion plan. Temporary employees are
not eligible to participate in the plan.
(2)
Enrollment. An
enrollment and change period, as designated by the director, shall be held for
employees who wish to make changes in their current pretax status. New
employees will automatically be enrolled in the plan after satisfying any
waiting period requirements for group insurance unless an election form is
submitted. Employees also may change their existing pretax status during the
plan year if they have a qualifying change in status as defined in the Plan
Document.
(3)
Termination
of participation in the plan. An employee may terminate participation
in the plan during an open enrollment period. Otherwise, an employee may
terminate participation if the employee has a qualifying change in status as
defined in the Plan Document.
Notes
Iowa Admin. Code r. 11-64.8
ARC 8265B, lAB 11/4/09,
effective 12/9/09
