Page 58 - HarborLight CU 2014-15 SPD
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not require a waiver of beneficiary cost sharing, or coverage for specific medical conditions
not covered by the plan.
8. Does any required employee contribution exceed applicable state and
federal withholding limits?
A determination must be made as to whether any required employee contribution
exceeds applicable state and federal limits. Where the cost of coverage exceeds the amount
that can be withheld, it would appear that coverage need not be extended (unless contributions
are made from another source – e.g., a state agency).
If the order is an NMSN, the limitations should be specified in the notice. Otherwise, the
plan must ensure that it does not withhold amounts for coverage that exceed the maximum
amount permitted under section 303(b) of the Consumer Credit Protection Act (“CCPA”). Under
the CCPA, an employer cannot withhold more than (i) 50% of the employee’s disposable weekly
earnings where the employee is supporting a spouse or dependent child (other than the
potential alternate recipient); or (ii) 60% of the employee’s disposable weekly earnings where
the employee is not supporting a spouse or other child. Similarly, applicable state law wage
withholding limitations, which may be even more restrictive than the CCPA, should be reviewed.
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not covered by the plan.
8. Does any required employee contribution exceed applicable state and
federal withholding limits?
A determination must be made as to whether any required employee contribution
exceeds applicable state and federal limits. Where the cost of coverage exceeds the amount
that can be withheld, it would appear that coverage need not be extended (unless contributions
are made from another source – e.g., a state agency).
If the order is an NMSN, the limitations should be specified in the notice. Otherwise, the
plan must ensure that it does not withhold amounts for coverage that exceed the maximum
amount permitted under section 303(b) of the Consumer Credit Protection Act (“CCPA”). Under
the CCPA, an employer cannot withhold more than (i) 50% of the employee’s disposable weekly
earnings where the employee is supporting a spouse or dependent child (other than the
potential alternate recipient); or (ii) 60% of the employee’s disposable weekly earnings where
the employee is not supporting a spouse or other child. Similarly, applicable state law wage
withholding limitations, which may be even more restrictive than the CCPA, should be reviewed.
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