Common use of Active/Inactive Employee Clause in Contracts

Active/Inactive Employee. The plan that covers a person as an employee who is neither laid off nor retired (or as that employee’s dependent) is primary to a plan that covers the person as a laid off or retired employee (or as that employee’s dependent). If the other plan does not have this rule, and if, as a result, the plans do not agree on the order of benefits; then this rule is ignored. This rule does not apply if the rule under paragraph 3 can determine the order of benefits. For example, coverage provided to a person as a retired worker and as a dependent of an actively working spouse will be determined under the rule in paragraph 3.

Active/Inactive Employee. The plan that covers a person as an employee who is neither laid off nor retired (or as that employee’s dependent) is primary to a plan that covers the person as a laid off or retired employee (or as that employee’s dependent). If the other plan does not have this rule, and if, as a result, the plans do not agree on the order of benefits; then this rule is ignored. This rule does not apply if the rule under paragraph 3 1 can determine the order of benefits. For example, coverage provided to a person as a retired worker and as a dependent of an actively working spouse will be determined under the rule in paragraph 31.