Page 22 - Citizens Bank Benefit Guide 2020_Revised 12-11-2020
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COBRA Notice
Continued
Your depe de t childre will become qualified be eficiaries if they lose coverage u der
the Pla because of the followi g qualifyi g eve ts:
• The pare t-employee dies;
• The pare t-employee’s hours of employme t are reduced;
• The pare t-employee’s employme t e ds for a y reaso other tha his or her gross misco duct;
• The pare t-employee becomes e titled to Medicare be efits (Part A, Part B, or both);
• The pare ts become divorced or legally separated; or
• The child stops bei g eligible for coverage u der the Pla as a “depe de t child.”
When is COBRA continuation coverage available?
The Pla will offer COBRA co ti uatio coverage to qualified be eficiaries o ly after the Pla Admi istrator has bee otified that a
qualifyi g eve t has occurred. The employer must otify the Pla Admi istrator of the followi g qualifyi g eve ts:
• The e d of employme t or reductio of hours of employme t;
• Death of the employee;
• Comme ceme t of a proceedi g i ba ruptcy with respect to the employer or
• The employee’s becomi g e titled to Medicare be efits (u der Part A, Part B, or both).
For all other qualifying events (divorce or legal separation of the employee and spouse or a dependent child’s losing eligibility
for coverage as a dependent child), you must notify the Plan Administrator within 60 days after the qualifying event occurs. You
must provide this notice to your HR or Payroll Contact
How is COBRA co ti uatio coverage provided?
O ce the Pla Admi istrator receives otice that a qualifyi g eve t has occurred, COBRA co ti uatio coverage will be offered to
each of the qualified be eficiaries. Each qualified be eficiary will have a i depe de t right to elect COBRA co ti uatio coverage.
Covered employees may elect COBRA co ti uatio coverage o behalf of their spouses, a d pare ts may elect COBRA co ti uatio
coverage o behalf of their childre .
COBRA co ti uatio coverage is a temporary co ti uatio of coverage that ge erally lasts for 18 mo ths due to employme t
termi atio or reductio of hours of wor . Certai qualifyi g eve ts, or a seco d qualifyi g eve t duri g the i itial period of
coverage, may permit a be eficiary to receive a maximum of 36 mo ths of coverage.
There are also ways i which this 18-mo th period of COBRA co ti uatio coverage ca be exte ded:
Disability extension of 18-month period of COBRA continuation coverage
If you or a yo e i your family covered u der the Pla is determi ed by Social Security to be disabled a d you otify the Pla
Admi istrator i a timely fashio , you a d your e tire family may be e titled to get up to a additio al 11 mo ths of COBRA
co ti uatio coverage, for a maximum of 29 mo ths. The disability would have to have started at some time before the 60th day
of COBRA co ti uatio coverage a d must last at least u til the e d of the 18-mo th period of COBRA co ti uatio coverage.
Second qualifying event extension of 18-month period of continuation coverage
If your family experie ces a other qualifyi g eve t duri g the 18 mo ths of COBRA co ti uatio coverage, the spouse a d depe d-
e t childre i your family ca get up to 18 additio al mo ths of COBRA co ti uatio coverage, for a maximum of 36 mo ths, if
the Pla is properly otified about the seco d qualifyi g eve t. This exte sio may be available to the spouse a d a y depe de t
childre getti g COBRA co ti uatio coverage if the employee or former employee dies; becomes e titled to Medicare be efits
(u der Part A, Part B, or both); gets divorced or legally separated; or if the depe de t child stops bei g eligible u der the Pla as a
depe de t child. This exte sio is o ly available if the seco d qualifyi g eve t would have caused the spouse or depe de t child
to lose coverage u der the Pla had the first qualifyi g eve t ot occurred.
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