In the past, the IRS had indicated that an employee who returned to work after termination should not be allowed to re-enter the Section 125 Plan (this pertained to any pre-tax benefit). The IRS has now indicated in their Final Regulations issued March 23,2000 that a terminated employee who returns during the Section 125 Plan year can re-enter the Plan. If termination has been longer than thirty (30) days, the employee can make a new election regardless of any elections made during prior participation. If re-hired within thirty (30) days of termination, the participant's old elections must be reinstated-e.g. an implicit termination/rehire merely to change the employee's election would not be permitted