Q. We offer a cafeteria plan and allow employees to pay for health coverage on a pre-tax basis. Do employees have to sign a new salary reduction agreement each year?
A.- Not necessarily. A plan can be designed so that a current participant will be deemed to continue participating in the health plan during the next plan year unless the employee files an election not to participate. If your plan is designed that way, you do not need to get an affirmative election each year.
