December 21, 2004
New Continuation Requirements Apply to All Military Leaves BEGINNING on or After December 10, 2004
Duration. The Uniformed Services Employment and Reemployment Act (“USERRA”) has been amended to provide additional rights to employees on military leave. Specifically, USERRA has been amended to require continuation of health benefits for a period of twenty-four (24) months. Previously, USERRA required continuation coverage for eighteen (18) months, similar to COBRA.
Notification. USERRA has also been amended to require employers to notify all employees of their rights under USERRA. This notice can be accomplished by displaying a poster that is being developed by the Department of Labor. The poster is expected to be available within the next 90 days.
Action Items. As a result of the extension to the length of continuation coverage required under USERRA, employers should take the following actions:
- Review and, if necessary, revise
your continuation notices (i.e., initial notice, election
notice) to accurately
describe the length of continuation under
USERRA.
- Review and, if necessary, amend
plan documents and SPDs (or summary descriptions for
non-ERISA
plans) to accurately describe the length of
continuation under
USERRA.
-
Review and, if necessary, revise
any military leave policies (e.g.,
in employee handbooks) that refer
to continuation coverage.
-
If you use a third party
to administer continuation
coverage, confirm your
provider is administering
USERRA in accordance with the new requirements.
-
Obtain
a copy of the DOL poster (once available)
and display
it in
an appropriate location(s).
If you have any questions regarding the new USERRA requirement, or need assistance reviewing and revising your notices, plan documentation, and/or policies, please contact Darcy Hitesman or Scott Wold at 763-503-6620. If you administer your own continuation coverage, Hitesman & Wold, P.A. also has available continuation packets including information, timelines, and template notices and forms that may be used to administer COBRA, USERRA, and Minnesota continuation coverage.