Code of Colorado Regulations
1100 - Department of Labor and Employment
1107 - Division of Family and Medical Leave Insurance
7 CCR 1107-5 - REGULATIONS CONCERNING PRIVATE PLANS
Section 7 CCR 1107-5.16 - Involuntary Termination of a Private Plan by the Division

Current through Register Vol. 47, No. 17, September 10, 2024

1. The Division will withdraw approval for a private plan when the terms or conditions of the plan have been violated. Causes for plan termination shall include, but not be limited to, the following:

A. Failure to pay benefits in the amount and duration required by the FAMLI Act and its implementing regulations;

B. Failure to pay benefits in the amount and duration required by the private plan, where the private plan provides benefits in a greater amount or duration than is required by the FAMLI Act and its implementing regulations;

C. Failure to pay benefits within the timeframes and in the manner specified by the FAMLI Act and its implementing regulations;

D. Failure to maintain an adequate surety bond in accordance with the FAMLI Act and its implementing regulations;

E. Misuse of private plan money, including the use of private plan funds for anything other than paying out and administering benefits, or transferring private plan funds from an account established pursuant to 7 CCR 1107-5 Section 5.3.6 to any account not exclusively for holding private plan funds;

F. Failure to submit reports or comply with other compliance requirements as required by the FAMLI Act and/or its implementing regulations;

G. Failure to pay the annual maintenance fee; or

H. Failure to otherwise comply with the FAMLI Act and its implementing regulations.

2. The Division will conclude that the terms or conditions of the plan have been violated, and therefore withdraw approval of the private plan, if the Division determines that the employer or the private plan administrator has repeatedly violated the private plan's terms and/or the FAMLI Act and its implementing rules, has willfully or recklessly violated the private plan's terms and/or the FAMLI Act or its implementing rules, or has otherwise violated the private plan's terms and/or the FAMLI Act or its implementing rules in such a way that indicates a widespread compliance concern.

3. If the Division withdraws approval of an employer's private plan, the Division will issue to the employer and the private plan administrator a Notice of Withdrawal of Private Plan Approval. The employer may appeal that withdrawal to the Division pursuant to 7 CCR 1107-9. If the employer does not appeal the withdrawal, the effective date is the day following the appeal deadline specified by 7 CCR 1107-9. The Division will stay the withdrawal of approval during an appeal.

Disclaimer: These regulations may not be the most recent version. Colorado may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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