Q.- We have a few employees who were asked to leave their job last year. They were given the option to resign instead of being terminated. Do we have to offer them subsidized COBRA since they actually resigned?
A.- Likely, yes. While guidance has not been issued on what is considered an “involuntary termination” under the American Rescue Plan Act, it is likely that forcing an employee to choose between termination and resignation will be considered involuntary. In 2009, a similar subsidy was available to COBRA continuants through the American Recovery and Reinvestment Act. Under the terms of that subsidy, the situation you describe would have been considered involuntary.