New USERRA Requirements For Employers

On December 10, 2004, President Bush signed into law the Veterans Benefits Improvement Act of 2004. This legislation updates the Uniformed Services Employment and Reemployment Rights Act (USERRA). We want you to be aware of how it may impact your organization and your employees who leave for military service.

Extension of Health Plan Continuation Coverage

§ Employers are now required to extend health coverage for 24 months rather than 18 months. This applies immediately to any employee leaving for military service who elected coverage on or after December 10, 2004.

§ It is likely that you will need to amend your health plan document and summary plan description, any USERRA policy you have adopted, as well as the forms you use to administer USERRA health plan continuation coverage.

§ If your organization is subject to COBRA, this change creates a discrepancy regarding continuation coverage periods. Employees are entitled to benefits under whichever program is most advantageous for them.

Required Notice to Your Employees

§ You must provide employees with notice of the rights, benefits and obligations of USERRA. You can satisfy this requirement simply by posting the notice where you customarily post notices for employees.

§ A model notice will be available from the Department of Labor no later than March 10, 2005. Your notice to employees is required as soon as the Department of Labor releases the model notice.

If you have questions about this recent legislation and how it may impact your business, please call or e-mail your contact in the Employee Benefits Group at Ice Miller. If you do not have a contact in the Ice Miller Benefits Group, please call or e-mail Melissa Proffitt Reese or Katrina M. Clingerman.