IN TERMS OF NON-CALENDAR YEAR PLANS, WILL TRANSITION RELIEF LANGUAGE BE ADDED TO THE PLANS? CAN CAFETERIA PLANS BE AMENDED, MID-YEAR, TO ALLOW PARTICIPANTS ON/OFF PLAN TO ENTER EXCHANGE OR ADD COVERAGE TO COMPLY WITH HCR?

Language will be added to non-calendar year plans. Traditionally cafeteria plans must be changed prospectively, but the transition relief would give employers until December 31, 2014 to amend their plans to reflect the transition rules. As long as the amendment is effective retroactively to the first day of the 2013 cafeteria plan, the plan can be amended. Alternatively if no further guidance is issued during the first quarter of 2013, an amendment is usually prepared based on the information available, for release at the end of the first quarter of 2014.