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?
Yes. The definition of an “early retiree” requires that the early retiree not be “an active employee of an employer maintaining, or currently contributing to, the employment-based plan or of any employer that has made substantial contributions to fund such plan.” 45 CFR 149.2. Therefore, as long as an early retiree is not employed by an employer that is maintaining, or currently contributing to, the employment-based plan or by any employer that has made substantial contributions to fund such plan, the employer-sponsor from which the early retiree retired (or employee organization, as applicable) may consider that individual and that individual’s spouse or dependent, to be an early retiree, even if the individual is employed elsewhere.
Related Questions
- Do the $15,000 cost threshold and $90,000 cost limit apply separately to each individual for whom a plan sponsor is submitting reimbursement requests under the Early Retiree Reimbursement Program?
- 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?
- Can surviving dependents of early retirees satisfy the regulatory definition of "early retiree"?
