LM_SW_Benefits Guide 2024

Dependent Eligibility

DEPENDENT ELIGIBILITY We know that healthcare coverage is important to you and your family. As part of our commitment to control healthcare costs, CNG is asking employees to review the eligibility of your dependent(s) enrolled in the Company’s benefits. Please verify that your enrolled dependent(s) meet the definition of a dependent as stated in our benefit plans. CNG BENEFIT PLANS GENERALLY DEFINE AN ELIGIBLE DEPENDENT AS THE FOLLOWING: 1. your lawful spouse; and 2. any child of yours who is less than or up to age 26 years old*; or 26 or more years old, unmarried, and primarily supported by you and incapable of self-sustaining employment by reason of mental or physical disability which arose while the child was covered under this Plan, or while covered under a prior plan with no break in coverage. The term child means someone born to you or legally adopted by you from the start of any waiting period prior to the finalization of the child’s adoption. It also includes a newborn infant who is adopted by you from the moment you take physical custody of the child upon the child’s release from the hospital prior to the finalization of the child’s adoption. It also includes a stepchild, a grandchild, or a child for whom you are the legal guardian. Benefits for a dependent child will continue until the last day of the calendar year in which the limiting age is reached. If you cannot verify eligibility for coverage, you will no longer be able to elect coverage for that individual. HOW DOES DIVORCE AFFECT BENEFITS COVERAGE? Divorce changes the status of a non-employee spouse covered on our plans from lawful spouse (legally married and therefore an eligible dependent) to no longer having eligibility to be on the plans. The divorced employee has the responsibility to drop the spouse (and in some cases children) who has lost eligibility. There are financial implications of keeping a non-eligible person on the plans. WHAT IF MY DIVORCE DECREE REQUIRES THAT I COVER MY FORMER SPOUSE? Divorce decrees may require the covered spouse to be responsible for continuing the former spouse’s coverage under the benefits plans. Under this scenario, an employee covers the former spouse through COBRA. The covered spouse must drop the former spouse from coverage and then have the former spouse elect COBRA coverage to fulfill the decree. This is considered a qualifying life event (QLE) which can take place at any time during the year not just at open enrollment. The Company’s Human Resources Department can provide further information regarding applying for COBRA. For example, John and his spouse divorce. His spouse was covered under John’s medical plan. As part of the divorce decree, John is required to maintain his former spouse’s benefit coverage for one year. What are his next steps? John would go on the employee self-service portal and drop his former spouse from benefit coverage. He will be asked to provide the divorce decree showing his spouse is no longer an eligible dependent and can be dropped from the plan. Once the decree is provided, his former spouse will be dropped from coverage. Within 7-10 days from dropping coverage, the former spouse will receive COBRA election forms at the home address on file. The former spouse must elect COBRA and John will be responsible for paying the COBRA premium for the duration of his obligation. *Although eligible dependents are covered under benefit plans to age 26 under the Affordable Care Act (ACA) legislation, HSA fund distributions are limited to dependents as defined by the IRS below. A qualifying child (daughter, son, stepchild, sibling or stepsibling, or any descendant of these) who: • Has the same principal place of abode as the covered employee for more than 1/2 of the taxable year • Has not provided more than 1/2 of his or her own support during that taxable year • Is not yet 19 (or, if a student, not yet 24) at the end of the tax year, or is permanently and totally disabled

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QUESTIONS? Call BenefitsVIP ® at 866.286.5354