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LEAVE WITHOUT PAY PRESENTATION. 2009. LWOP. WHAT IS LEAVE WITHOUT PAY?. A period of “approved leave of absence without pay” Active employees who are eligible to participate in the Flexible Benefits Program may continue insurance options in which they have enrolled by paying their premium(s).
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LEAVE WITHOUT PAY PRESENTATION 2009
LWOP WHAT IS LEAVE WITHOUT PAY? • A period of “approved leave of absence without pay” • Active employees who are eligible to participate in the Flexible Benefits Program may continue insurance options in which they have enrolled by paying their premium(s)
LWOP WHAT IS LEAVE WITHOUT PAY? • Each agency is responsible for informing an employee on LWOP of the appropriate insurance premium amounts and spending account contributions in order to maintain coverage for options selected by the employee
LWOP • An employee on approved leave without pay (LWOP) or suspension without pay is allowed to make personal premium payments for a period of up to 12 months in order to continue their Flexible Benefits coverage according to the Plan Document • If the employee's LWOP status begins after January 1, the employee is to continue monthly premiums for options chosen for the current Plan Year to ensure continuous coverage
LWOP PAYMENT OPTIONS • An employee can elect one of the following methods of payment: • Pre-Pay Option – cannot be mandated by an agency. If chosen, it can be made on a pre-tax salary reduction, up to three (3) months, from any taxable compensation (including unused sick or vacation days) • Pay-As-You-Go Option – allows the employee to pay with after-tax dollars by making monthly payments
LWOP TERMINATED COVERAGE • If an employee does not make after-tax premiums to continue coverage, and it is terminated, the applicable options will be subject to the following the next Open Enrollment Period: • Medical Underwriting • Pre-existing Conditions • Late Entrant Penalties
LWOP TERMINATED COVERAGE • If an employee’s coverage under Health Care Spending Account terminates while on leave, the employee is not entitled to receive reimbursements for claims incurred during the time on leave while coverage was not in effect • Coverage will be reactivated when contributions resume, however, the employee will experience a gap in their coverage and their annual election amount will be adjusted accordingly
LWOP OPEN ENROLLMENT PERIOD • If Open Enrollment occurs while an employee is on LWOP, the employee will be given the same right as other employees to make election changes • If a new benefit option is added to the Plan, the employee will be given the same right as other employees to elect the new option
LWOP QUALIFYING CHANGE IN STATUS • If a qualifying change in status occurs while on leave, the employee is to report the change to their department by completing a Change in Status Event Form • A change request must be made within 30 days
LWOP RETURN FROM LWOP • If an employee is returning from an approved leave without pay during the same plan year and personal premiums were paid, the employee’s benefit options and coverage previously selected will be reinstated and payroll deductions will resume.
LWOP IMPORTANT NOTE • If an employee is terminated while on LWOP, benefits eligibility is also terminated with the State • To maintain certain Flex Benefits (e.g. Life Insurances, AD&D, LTC, etc.) the terminated employee would be required to switch to an individual policy directly with the vendor(s)
SPA CONTACT INFORMATION • Agency’s website: www.spa.ga.gov • Information Regarding Flexible Benefits: http://team.georgia.gov/portal/site/FLEX • Phone Numbers • Local: 404-656-2730 • Toll Free: 1-888-968-0490
