What participation level is required for a Noncontributory plan?

In a Noncontributory plan, the employer pays the full premium for the insurance coverage, meaning that employees do not contribute financially towards their insurance premiums. As a result, the participation level required for this type of plan is 100%. This means that all eligible employees must be enrolled in the plan without exception. The rationale behind this requirement is that since the employer is bearing the entire cost, it is essential for the risk pool to include all eligible individuals to make the plan economically viable and effective.

Other participation levels such as 50% or 75% would imply that only a portion of eligible employees are required to join, which contradicts the nature of a Noncontributory plan. Additionally, stating that no participation is required would not make sense in the context of a Noncontributory plan, as it fundamentally relies on full enrollment to function effectively and spread risk across the entire group.