Align Measurement to Open Enrollment
A measurement period that ends a few weeks before open enrollment, followed by an administrative period, lets you total hours, notify employees and enroll them in one motion.
The three things to know.
One Cycle a Year
A 12-month window ending in October, with an administrative period through December, produces classified employees in time for a January 1 stability period.
The Benefit Calendar Does the Work
Open enrollment, notices and payroll deductions already run on a yearly rhythm. Tying measurement to it means one set of deadlines instead of two.
What to Watch
The administrative period has a 90-day limit. A window that ends too close to January leaves no room to process hours and enrollment, so work backward from the plan start date.
Sources: 26 CFR § 54.4980H-3. General information, not legal advice.
A worked example.
A July 1 Plan Year
A school-year employer with a July 1 plan year picks a measurement period from April 16 to April 15 and an administrative period from April 16 to June 30.
What the Rule Produces
The administrative period is 76 days, inside the 90-day limit. Hours are totaled in late April, notices go out in May, enrollment closes in June, and the stability period starts July 1 with results already known.
Four steps to apply it.
1. Name the plan start
Fix the date the stability period must begin.
2. Count back
Subtract the administrative period you need.
3. Set the window end
End measurement just before that date.
4. Test the calendar
Draw the full cycle for two years.
Where it goes wrong. Ending the window so close to the plan start that hours cannot be totaled and enrollment cannot close in time.
The questions that come up next.
What if our plan year is not January 1?
The same logic applies, shifted to your date. For a July 1 plan year a window can end in mid-April, with an administrative period through June.
Is a 12-month window required for this to work?
No. Shorter windows also align with enrollment but repeat the cycle more often.
Do new hires follow this calendar?
Not exactly. New variable-hour hires have an initial measurement period of their own and are then tested on the standard period.
Does the window have to end at the same date every year?
Consistency matters. Keep the dates fixed unless you adopt a documented change.
Can we align to open enrollment and still use a shorter window?
Yes. The same logic applies with two windows a year.
Plan-specific questions belong with ERISA counsel, and we will bring them in.
Related pages on the look-back method.
Match Stability to the Plan Year
A stability period of 12 months that runs with the plan year keeps eligibility and the benefit calendar in step, and avoids offering coverage for part of a plan year.
Different Rules for Different Groups
You can vary the measurement period, stability period and administrative period, or choose between the two methods, for certain categories of employees.
The Full Look-Back Guide
Every rule, example and source behind this page, in one place.
Talk it through with someone who runs this every year.
We help you choose the design, document it and reconcile the hours before the numbers reach your reporting.
An independent employee benefits consulting firm. We look at the entire benefits program — cost, plan performance, risk and administration.
Switch to CFH. Unhappy with your broker? Your employees won’t notice. You will. →
Cookies on This Site
We use cookies to keep the site working properly and to understand how it is used. You can decline anything that is not essential. See our Privacy Policy for the detail.
- Essential — needed for the site to load and for you to move around it. These cannot be switched off.
- Analytics — tell us which pages get read, so we know what is worth writing more of.
- Advertising — set by third parties such as ad and social platforms to measure and target campaigns.