Common use of COBRA Rights Clause in Contracts

COBRA Rights. Unless otherwise expressly provided in the terms and conditions of the applicable plan or policy, University benefits coverage ends at the close of business on the effective date of termination of appointment unless extended under The Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”). This law allows qualified beneficiaries to continue medical and dental insurance and/or flexible spending plan benefits if a qualifying event occurs. Those who choose to extend insurance coverage for a specified period of time may be charged up to 102% of the premium cost to the employer for such coverage. A qualifying beneficiary is a spouse, civil union partner, or dependent child covered by the University’s medical or dental plan or a faculty member who loses coverage due to termination or reduction in appointment. Change in Faculty member’s Employment Status. Any University initiated temporary reduction (not exceeding four (4) months) of a faculty member’s FTE will not affect his or her insurance coverage. However, unless otherwise agreed upon, such as in a phased retirement plan, vacation and medical leave will be based on a faculty member’s reduced FTE and retirement contributions will be based upon the reduced salary. Dependents’ Coverage. Faculty may apply for benefits for eligible dependents under University medical, dental and life insurance plans. The University reserves the right to require proof of marriage, proof of civil union status and proof of legal responsibility for dependent children. Coverage eligibility will also include for the first three (3) months of employment, the same-sex spousal equivalent of the new employee who comes to UVM from another state where same sex marriage or civil unions are not legal. Such employees must provide proof of marriage within three