What must the plan administrator do in the event that the employer is unable to withhold from the participant’s paycheck the employee contributions necessary to provide coverage to the child?
If Federal or State withholding limitations prevent withholding from the participant’s paycheck the additional contribution required to provide coverage to the child(ren), the employer must notify the custodial parent and the Issuing Agency. Unless the employer is able to withhold the necessary contribution, the plan administrator is not required to extend coverage to the child. However, the custodial parent or DRS may be able to modify the amount of cash support to be provided in order to enable the employer to withhold the required contribution to the plan. The participant may also voluntarily consent to the withholding of an amount otherwise in excess of applicable withholding limitations.
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