Termination of Participation in Regular Plans (SAP Library

Termination of Participation in Regular Plans

The table below shows how the system processes existing records of participation in COBRA-relevant plans for each type of qualifying event during COBRA letter generation:

Qualifying Event	Person Affected	Effect on Participation in Regular Plans	Is the Person Affected a COBRA Qualified Beneficiary?
Termination of employment / Reduction in working hours / Bankruptcy of employer	EE SP CH / SC DP / DC Others	Terminated Terminated Terminated Terminated Terminated	Yes Yes Yes Depends on customizing* Depends on customizing*
Death of employee / Employee's entitlement to Medicare	EE SP CH / SC DP / DC Others	Terminated Terminated Terminated Terminated Terminated	No Yes Yes Depends on customizing* Depends on customizing*
Divorce	EE SP CH / SC DP / DC Others	Continued Terminated Terminated N/A Terminated, if beneficiary*	No Yes Yes N/A Depends on customizing*
(Legal) separation	EE SP CH / SC DP / DC Others	Continued Terminated Terminated Terminated, if beneficiary* Terminated, if beneficiary*	No Yes Yes Depends on customizing * Depends on customizing *
Child's loss of dependent status	EE SP CH / SC DP DC Others	Continued Continued Terminated Continued Terminated, if beneficiary* Terminated, if beneficiary*	No No Yes No Depends on customizing* Depends on customizing*

Key

EE = employee

SP = spouse

CH = child

SC = stepchild

DP = domestic partner

DC = domestic partner's child

* You can also allow persons other than employees, spouses or (step)children, to be COBRA qualified beneficiaries in their own right. In particular, these other persons may include domestic partners and domestic partner's children. If you want to give other persons COBRA rights, you need to specify the events for which you want to allow coverage for each type of beneficiary in the Benefits Administration Implementation Guide, in the step COBRA ® Define COBRA Additional Qualified Beneficiary Subtypes.

Note

If a qualifying event causes an employee’s dependent, but not the employee, to lose health plan coverage, the system delimits the employee’s existing Health Plan infotype record and creates a new one that lists only those dependent(s), if any, who continue to be covered with the employee.
You might want regular plan participation to be terminated on different days for different event types, for example at the end of the month for Termination of employment and immediately for Divorce or Child's loss of dependent status. In this case, you can define different termination rules for these event types in Customizing.

In the Benefits Administration Implementation Guide in the step Flexible Administration ® Programs ® Participation Termination ® Define Termination Groupings, you set up the Termination Grouping feature to include the decision field EVTYP. You then define the appropriate termination rule for each combination of termination variant and termination grouping in the step Define Termination Rules.