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Employees Called to Active Military Duty

General Information and Requirements

Updated 4/21/2009

Applicable to:

  • Employees covered by Public Employees Benefits Board (PEBB) benefits who are called to active military duty in the uniformed services.

Relevant Rule:

  • Definition – “Service in the uniformed services” means the performance of a duty on a voluntary or involuntary basis in a uniformed service under competent authority and includes active duty, active duty for training, initial active duty for training, inactive duty training, full-time National Guard duty including state-ordered active duty, and a period for which a person is absent from a position of employment for the purpose of examination to determine the fitness of the person to perform such duty. (WAC 392-126-026)
  • Statute requires that employer provided health care coverage is continued for employees called to active military service for less than 31 days. For administrative efficiency in complying with the rule, agencies should maintain employer provided coverage until the end of the month in which the 30 days occurs. For example, if the employee was called to active military service on September 15th, employer health care coverage should be maintained until October 31st. (RCW 73.16.053)
  • Employees that are called to active military service for 31 or more days have two options for maintaining PEBB insurance benefits which are outlined in the charts below.

Additional Information

Employees or family members who lost PEBB medical and or dental coverage due to military leave, and who have a spouse or qualified domestic partner (QDP) also covered by PEBB benefits may:

  • Apply to reinstate previously waived medical and or dental coverage on the spouse or qualified domestic partners PEBB coverage by completing a new employee Enrollment/Change form and submitting it to the spouse or QDP’s employer within 60 days of PEBB coverage ending.

Option 1: Continue PEBB Employer Provided Benefits While on Active Duty for More Than 31 Days

...Employer Provided Benefits... ...Employee... ...Employer...
Eligibility Continue employer provided PEBB benefits by using agency approved annual or military leave. (Must maintain a minimum of 8 hours of pay status each month). Continue employer provided benefits by leaving the employee enrolled in PAY1.
Medical/Dental
  1. Can remain enrolled in current plan elections for self and any covered dependents as long as the required premiums are paid, or
  2. Can waive medical for self if enrolled in another health plan. However, if medical is waived for self, dependents medical will automatically be waived.
  3. Employees cannot waive dental for themselves but may waive dental coverage for family members if they have other dental coverage.
  4. To waive medical and or dental (for dependents), the employee must complete and submit an Enrollment/Change form to their employer.
  5. To reinstate medical and or dental coverage previously waived while on military leave, the employee must complete and submit an Enrollment/Change form to their employer within 60 days of returning to work. Proof of loss of other coverage is not required.
  1. Collect employee premium(s) if enrolled in coverage that requires a premium. ( Refer to Section 125 payroll rules for payment options ).
  2. For employees who are requesting reinstatement of waived medical and or dental coverage upon return from military leave, you will need to document on the Enrollment/Change form the return to work date and the reason “Return from Military Leave” and send the completed Enrollment/Change form to the Health Care Authority (HCA) for processing. Coverage will be reinstated by HCA effective the first of the month in which the employee returned to work.
Life Insurance
  1. Communicate with employer the choice to continue or cancel coverage during the military leave.
  2. Can continue current coverage for a maximum of 29 months as long as the required premiums are paid to the employer.
  3. Contact employer for premium payment options.

(Part E Accidental Death and Dismemberment cannot be continued during military leave).

Note: If optional coverage is not continued and paid for during military leave, such coverage may require evidence of insurability to reinstate when the employee returns to work.

  1. Communicate with the employee to inquire about the choice to continue or cancel coverage.
  2. If the employee chose to continue coverage, collect the employee’s portion of the premium(s) due prior to leaving employment. ( Refer to Section 125 payroll rules for payment options ).
  3. If the employee chose not to continue coverage, advise the employee that optional coverage not continued and not paid during military leave may require evidence of insurability to reinstate when the employee returns to work. (Refer to Employee LWOP and Return to Work Circumstance).
  4. Part E Accidental Death and Dismemberment cannot be continued during military leave. If enrolled in Part E, terminate the coverage in PAY1 with an effective date of the end of the month in which the employee entered active military duty.
  5. For employees who chose not to continue optional coverage, enter the coverage end date in PAY1 the end of the month in which the employee entered active military duty.
Long Term Disability
  1. No action required, cannot be continued. Coverage ends the date the employee becomes full-time active military duty.
  1. Terminate optional coverage in PAY1 effective the end of the month in which the employee entered active military duty.

Note: PAY1 requires end of month dates for terms and due to system limitations Part A Basic cannot be terminated in PAY1.

ASI Flex
  1. May elect to continue participation while on approved leave by prepaying to the employer before going on leave or pay during the leave.
  2. May elect to discontinue contributions during the approved leave and upon return to work resume participation at the same coverage level elected at the start of the plan year, with a corresponding increase in contribution for the balance of the plan year, or
  3. May discontinue contributions during the approve leave and upon return to work participate at a reduced coverage level for the plan year, and resume the per-pay period contribution in effect before the leave.
  4. To reinstate the FSA at the same contribution level, the employee must send a change form to ASIFlex within 60 days of returning to work.
  1. Collect premiums if the employee elected to continue the benefits.
  2. Stop premiums if the employee elected to discontinue coverage.

Option 2: Discontinue PEBB Employer Provided Benefits and apply for Continuation of Coverage LWOP While on Active Duty for More Than 31 Days

...Continuation of Coverage (LWOP)... ...Employee... ...Employer...
Eligibility May choose to discontinue PEBB employer provided benefits and apply for Continuation of Coverage LWOP which is a self-pay option through the Health Care Authority.

Note: If medical and or dental is not continued, coverage will end on the last day of the month in which employer provided coverage was terminated.

Terminate the employee’s eligibility for PEBB employer sponsored benefits in PAY1 within 30 days from the date the employee lost benefits.
Medical/Dental May elect Leave Without Pay (Self-Pay) coverage to continue medical, and or dental for 29 calendar months.
  1. May self-pay to HCA for the same medical and dental plan that they were covered under the day before going out on LWOP.
  2. Subscriber and dependents will have an independent right to choose coverage and may choose different options.

    Options include:

    1. Medical only
    2. Medical and dental
    3. Dental Only
  3. The employee may choose to change medical and or dental plans at the time they apply for self-pay due to a change that triggers a special open enrollment. Employees may also change plans during the annual open enrollment.
  4. Dependents that enroll in medical and/or dental coverage will be enrolled in the same plans as the employee.
  5. Applications for self-pay coverage must be made to the Health Care Authority within 60 days of the postmark date of the Continuation of Coverage Notice that will be sent to the employee by the Health Care Authority.
  6. The employee must make the first payment for continuation of coverage no later than 45 days after the date coverage was elected. This is the date the election form is received by the Health Care Authority.
  1. No action required. Medical and dental coverage will automatically terminate when the coverage end date is entered in PAY1.
Life Insurance
  1. May be continued by self-paying to Health Care Authority for 29 calendar months.

Note: If optional coverage is not continued & paid for during military leave, such coverage may require proof of insurability to reinstate when the employee returns to work.

  1. No action required. Life Insurance coverage will automatically terminate when the coverage end date is entered in PAY1.
Long Term Disability
  1. No action required, cannot be continued. Coverage ends the date the employee becomes full-time active military duty.
  1. No action required. Long Term Disability coverage will automatically terminate when the coverage end date is entered in PAY1.
ASI Flex
  1. May elect to continue participation through ASI while on approved leave by completing an ASI change form. This requires prepay or pay during the leave period to ASI.
  2. May elect to discontinue contributions during the approved leave and upon return to work resume participation at the same coverage level elected at the start of the plan year, with a corresponding increase in contribution for the balance of the plan year, or
  3. May discontinue contributions during the approved leave and upon return to work participate at a reduced coverage level for the plan year, and resume the per-pay period contribution in effect before the leave.
  4. To reinstate the FSA at the same contribution level, the employee must send a change form to ASIFlex within 60 days of returning to work.
  1. Stop collection of premium.

Health Care Authority will send the employee the Continuation of Coverage Election Notice packet in the mail after the employee coverage has been terminated in PAY1. (This can take up to 14 days after benefits have been terminated in PAY1).

Guidance Resources

Related Circumstances

Forms

Rates

  • Active (178.4 KB) (if enrolling on spouse or qualified domestic partner’s coverage)
  • Html Self-Pay

System Keying in PAY1:

Common Questions and Issues

Perspay Knowledge Base

PEBB Knowledge Base – You may direct employees to the PEBB website search to view these and other commonly asked questions.

WAC References and their general subject matter

  • Html 182-08-180 - Premium payments and refunds
  • Html 182-08-190 - The employer contribution for all eligible employees
  • Html 182-08-198 - Changing health plans
  • Html 182-12-128 - May an employee waive health plan enrollment?
  • Html 182-12-131 - When does employer paid insurance coverage end?
  • Html 182-12-133 - Options for continuing coverage when employer coverage is lost
  • Html 182-12-262 - Enroll, waive or remove eligible dependents

Audio Visual Aids

  • Html Life Insurance Video (A guide for Pers/Pay staff on filling out the Life Enrollment form and Change form)