OAR 471-070-2210: Equivalent Plans: Application Requirements and Effective Date

(1) An employer must submit a separate application and receive department approval for an employer administered equivalent plan or a fully insured equivalent plan for each Business Identification Number. The application must be submitted to the department online or by another method prescribed by the department. An incomplete application will not be reviewed by the department. (2) For an equivalent plan to be reviewed by the department, the equivalent plan application must include the following: (a) Information about the employer applying for the equivalent plan, including: (A) Business Identification Number and Federal Employer Identification Number; (B) Business name; (C) Business address; and (D) Business contact’s name and contact information; (b) A copy of the employer administered equivalent plan or in the case of a fully insured equivalent plan, a copy of the insurance policy or the insurance product and the selected variables the employer is choosing; (c) A completed questionnaire attesting that the plan meets all requirements for equivalent plans; and (d) Other information as required on the department’s equivalent plan application form. (3) Employers must pay a nonrefundable $250 application fee with every: (a) Application for approval of a new equivalent plan; or (b) Application for reapproval or amendment of an equivalent plan that has substantive amendments to the equivalent plan that was originally approved by the department. (4) Employers must pay a nonrefundable $150 application fee with every application for reapproval of an equivalent plan that has no changes or only non-substantive amendments to the equivalent plan that was originally approved by the department. (5) There is no fee for either of the following: (a) Application for amendment of an equivalent plan that has substantive or non-substantive amendments to the equivalent plan that were required by Oregon, local, or federal law changes or changes to the contribution rate and maximum wage amount as described in OAR 471-070-3010; (b) Application for amendment of an equivalent plan that has non-substantive amendments to the equivalent plan that was originally approved by the department. (6) “Substantive amendments” to an equivalent plan that was originally approved by the department as used in sections (3), (5), and (11) of this rule include, but are not limited to, any of the following: (a) Changing from a fully insured equivalent plan to an employer administered equivalent plan; (b) Changing from an employer administered equivalent plan to a fully insured equivalent plan; (c) Changing the fully insured equivalent plan insurance policy to reduce benefits or leave types, regardless of whether the new plan is from the same insurance provider or another insurance provider; (d) Changing the questionnaire answers for the equivalent plan; or (e) Changing the employer administered equivalent plan to reduce benefits or leave types. (7) “Non-substantive amendments” as used in section (4), (5), and (11) of this rule include, but are not limited to, any of the following: (a) Updating solvency documents for employer administered plans; (b) Updating the application for an equivalent plan that does not amend the equivalent plan, includes, but is not limited to, the following: (A) Changing business or contact information, or (B) Correcting typographical error (c) Increasing benefits or leave types, regardless of whether the new plan is from the same insurance provider or another insurance provider. (8) Approved equivalent plans become effective: (a) For new equivalent plans, on the first day of the calendar quarter immediately following the date of approval by the department; and (b) For amendments to a previously approved equivalent plan, on the first day of the calendar quarter immediately following the date of approval of the amendment by the department. If approval of the amendment is denied, the employer must continue to follow the originally approved equivalent plan. (9) An application for reapproval must be submitted by an employer annually for a three-year period following the original effective date of the plan. The application for reapproval is due 30 days prior to the anniversary of the original effective date of the approved equivalent plan. For equivalent plans with an effective date of September 3, 2023, the anniversary date will be October 1 for any subsequent calendar years, in accordance with section (8) of this rule. Example: ABC Corporation submitted an equivalent plan application to the department on February 4, 2024. The department sent an approval letter for the equivalent plan that was dated March 5, 2024 and the equivalent plan becomes effective on April 1, 2024. The application for reapproval is due on March 2 of 2025, 2026, and 2027; 30 days prior from the original anniversary of the effective date of April 1st. (10) For the purposes of determining the reapproval requirement, the equivalent plan approval date and effective date are the first day of the calendar quarter immediately following the date of the original approval letter from the department. (11) After the three-year period following the original effective date of the plan, an application for reapproval must be submitted anytime a substantive amendment occurs as described in section (9) of this rule. For a non-substantive amendment, a copy of the revised equivalent plan must be submitted to the department at the time the change becomes effective. (12) The department may request any information necessary to establish facts relating to eligibility for an equivalent plan. Unless a timeframe is otherwise specified under statute or administrative rule or is specified by an authorized department representative, the employer must respond to all requests for information within the following time frames: (a) 14 calendar days from the date of the request for information, if the request was sent by mail to the employer’s last known address as shown in the department’s records. (b) 10 calendar days from the date of the request for information, if the request was sent by telephone, email, or other electronic means. (13) When the response to the request for information is sent to the department by mail, the date of the response shall be the date of the postmark affixed by the United States Postal Service. In the absence of a postmarked date, the date of the response shall be the most probable date of mailing as determined by the department. [Publications: Contact the Oregon Employment Department for information about how to obtain a copy of the publication referred to or incorporated by reference in this rule.]