Legal Question in Employment Law in Georgia
HSA Contribution / Employment Termination
I joined the company health plan on 10/20/07 during initial enrollment period (October) when the company switched insurance plans. As part of the benefit, the company contributes 1/12 of the HDHP deductible to an HSA each month, which I completed paperwork to establish the account.
On 11/7/07, I was terminated, having yet to receive any documentation, debit card, etc., for the HSA. As of 11/7 the company states that no contribution has been made as the account hasn't been opened yet, but once it is, a prorated amount would be deposited into the account. Their proration (the best that I can determine) is from the date of joining the health plan to the date of termination.
My question is, can a company arbitrarily contribute to a HSA at anytime during the month for me when they deposit for everyone else on the first of the month, and can they prorate this amount at their discretion? I feel that they need to contribute at least one full month (for at least November), if not two months worth into the HSA.
Thank you for your response.
1 Answer from Attorneys
Re: HSA Contribution / Employment Termination
You mention "paperwork," and obviously there will be documentation. We don't have it, and you don't tell us what it has to say on the subject. Read the documents - that controls optional benefits. It would not be surprising to find they have opted to not provide benefits beyond the dates of employment.
Related Questions & Answers
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
