NAC287.371. Eligibility of officer or employee to join opt-out plan; ineligibility of officer or employee to continue participation in opt-out plan.  


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  •      1. If an officer or employee is eligible to join an opt-out plan at the commencement of his or her employment, the officer or employee must, upon commencing employment:

         (a) Elect to join the opt-out plan; or

         (b) Decline coverage under the opt-out plan.

         2. If an officer or employee becomes eligible to join an opt-out plan after the commencement of his or her employment, the officer or employee must, at the time of his or her eligibility:

         (a) Elect to join the opt-out plan; or

         (b) Decline coverage under the opt-out plan.

    Ê If the officer or employee is a member of the Program at the time he or she becomes eligible to join the opt-out plan, the officer or employee shall terminate coverage by the Program.

         3. Except as otherwise provided in subsection 4, if an officer or employee in an opt-out plan becomes ineligible to continue participation in the opt-out plan, the officer or employee must terminate coverage by the opt-out plan and:

         (a) If the officer or employee is eligible to join a different opt-out plan:

              (1) Elect to join the other opt-out plan, subject to the requirements for enrollment in the opt-out plan; or

              (2) Decline coverage under the other opt-out plan.

         (b) If the officer or employee is eligible to join the Program:

              (1) Elect to join the Program, subject to the requirements for enrollment of the Program; or

              (2) Decline coverage under the Program.

         4. If an officer or employee in an opt-out plan becomes ineligible to continue participation in the opt-out plan because he or she is no longer employed by a participating public agency, the officer or employee may elect to continue coverage under the opt-out plan pursuant to the Public Health Service Act, 42 U.S.C. § 300bb-1 et seq. or the Consolidated Omnibus Budget Reconciliation Act, Public Law 99-272, as applicable.

         5. It is the responsibility of an officer or employee who is eligible to join an opt-out plan or who is ineligible to continue participation in the opt-out plan or the administrator of the opt-out plan to notify the Program of the eligibility or ineligibility, as applicable, of the officer or employee to participate in an opt-out plan. Failure to provide such notification to the Program may result in the ineligibility of the employee to participate in an opt-out plan or the Program, as applicable. Such notification must be given to the Program within 60 days after the officer or employee has become:

         (a) Eligible to join an opt-out plan; or

         (b) Ineligible to continue participation in an opt-out plan,

    Ê as applicable.

         6. The Program shall not consider a decision by an officer or employee to join an opt-out plan to be a declination of coverage.

         7. No lapse in coverage may occur to an officer or employee when he or she changes coverage pursuant to this section.

     (Added to NAC by Bd. of Pub. Employees’ Benefits Prog. by R097-03, eff. 9-24-2003; A by R002-12, 6-29-2012)