Can an individual (or the individuals spouse, surviving spouse, or dependent) satisfy the regulatory definition of “early retiree” while receiving health benefits from a plan sponsor via COBRA?
Under the ERRP statute and regulations, an “early retiree” is defined in part as an individual “who is not an active employee.” Thus, an early retiree does not actually have to be retired, as long as he or she is not an active employee, which is often the case with individuals receiving coverage via COBRA. Therefore, if the individual otherwise meets the statutory and regulatory definition of “early retiree” (i.e., an individual who is age 55 and older who is not eligible for coverage under Medicare and who is not an active employee), the fact that the individual is receiving health benefits via COBRA does not necessarily preclude the individual from being an early retiree. We note that the ERRP regulations also include in the definition of “early retiree” “the enrolled spouse, surviving spouse, and dependents of such individuals.” (emphasis added). We interpret the phrase “the enrolled spouse, surviving spouse, and dependents of such individuals” as referring only to those spouses and
Related Questions
- Can an individual satisfy the regulatory definition of being an "early retiree" with respect to a given plan sponsor, if the individual is employed by a different employer?
- May an early retirees spouse, surviving spouse, or dependent, while receiving health benefits from a plan sponsor under COBRA, be considered an early retiree?
- Can surviving dependents of early retirees satisfy the regulatory definition of "early retiree"?
