On April 14, 2021, the Employee Benefits Security Administration (“EBSA”) published guidance for plan sponsors, plan fiduciaries, record-keepers, and plan participants on best practices for maintaining cybersecurity. This is the first time that the EBSA has given cybersecurity guidance to the estimated 34 million defined benefit plan and the 106 million defined contribution plan participants with an estimated $9.3 trillion in assets. Read more
https://www.employeebenefitslawblog.com/wp-content/uploads/2022/10/logo_vertical-v2.png00adminhttps://www.employeebenefitslawblog.com/wp-content/uploads/2022/10/logo_vertical-v2.pngadmin2021-04-15 10:57:202021-04-15 10:57:20In the Darkness at the Edge of Town…Cybersecurity Guidance for Plan Participants, Record-Keepers, and Plan Sponsors From The EBSA
The COBRA subsidy from the most recent COVID-19 stimulus bill – The American Rescue Plan Act of 2021 (ARPA) – is now in effect. An assistance-eligible individual can have 100% of COBRA premiums subsidized for the periods beginning April 1, 2021 through September 30, 2021. All plan sponsors must offer the subsidy – it is not optional.
Eligible former employees and spouses/dependents (qualified beneficiaries) can receive the subsidy if they are already on COBRA. In addition, individuals who declined or dropped COBRA coverage can elect into COBRA under a “second bite at the apple” election process, if they are still in the remaining period of COBRA coverage that would have applied originally. Read more
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The myriad health and welfare plan requirements in the Consolidated Appropriations Act, 2021 include those for a group or individual health plan to maintain a cost comparison tool and an accurate and up-to-date network provider/facility directory for participant use. Each of these requirements is effective for plan years beginning on and after January 1, 2022. While the group health plan is responsible for compliance, in most cases the plan’s TPA will in practice be supplying this information to participants. Read more
https://www.employeebenefitslawblog.com/wp-content/uploads/2022/10/logo_vertical-v2.png00adminhttps://www.employeebenefitslawblog.com/wp-content/uploads/2022/10/logo_vertical-v2.pngadmin2021-03-18 13:06:482021-03-18 13:06:48Like a Surgeon… Got Providers on my Mind
Earlier this year, Bret Busacker explained the FSA relief enacted as part of the Consolidated Appropriations Act, 2021 (CAA) in a blog post titled “Bridge Over Troubled Water: 2021 Flexible Spending Account Relief in the Consolidated Appropriations Act, 2021.” The FSA relief in the CAA essentially permits employers to eliminate the “use it or lose it rule” for 2020 and 2021 and to permit mid-year FSA changes to both health FSAs and dependent care FSAs. The IRS recently issued additional guidance with respect to these FSA relief provisions in IRS Notice 2021-15 (the “Notice”). Read more
https://www.employeebenefitslawblog.com/wp-content/uploads/2022/10/logo_vertical-v2.png00adminhttps://www.employeebenefitslawblog.com/wp-content/uploads/2022/10/logo_vertical-v2.pngadmin2021-03-10 10:15:182021-03-10 10:15:18Whoomp There It Is…The IRS Issues Further Flexible Spending Account Relief under Notice 2021-15
In sum, under last year’s DOL guidance, employers were required to disregard the period from March 1, 2020 until 60 days after the president declared the COVID Pandemic National Emergency over (the “Outbreak Period”) in calculating employee notices and election deadlines for deadlines including the following:
The 30-day period (or 60-day period, if applicable) to request special enrollment under ERISA
The 60-day election period for COBRA continuation coverage
The date for making COBRA premium payments
The date for individuals to notify the plan of a qualifying event or determination of disability under COBRA
The date within which individuals may file a benefit claim under the plan’s claims procedures
The date within which claimants may file an appeal of an adverse benefit determination under the plan’s claims procedure
The date within which claimants may file a request for an external review after receipt of an adverse benefit determination or final internal adverse benefit determination
The date within which a claimant may file information to perfect a request for external review upon a finding that the request was not complete
With respect to group health plans, and their sponsors and administrators, the date for providing a COBRA election notice
https://www.employeebenefitslawblog.com/wp-content/uploads/2022/10/logo_vertical-v2.png00adminhttps://www.employeebenefitslawblog.com/wp-content/uploads/2022/10/logo_vertical-v2.pngadmin2021-03-02 13:50:282021-03-02 13:50:28If I Could Turn Back Time… And Then Add a Year
Employee benefit plans are subject to numerous laws that restrict, or at least limit, discrimination within the plans. Many benefit plan nondiscrimination rules focus on whether highly and non-highly compensated employees are receiving equal treatment under those plans; however, the recently enacted Consolidated Appropriations Act, 2021 (CAA) is bringing some attention to an often-overlooked discrimination rule that prohibits group health plans from discriminating with respect to mental health and substance use disorder benefits (MH/SUD benefits). Read more
https://www.employeebenefitslawblog.com/wp-content/uploads/2022/10/logo_vertical-v2.png00adminhttps://www.employeebenefitslawblog.com/wp-content/uploads/2022/10/logo_vertical-v2.pngadmin2021-02-26 09:16:572021-02-26 17:08:12But I Said No, No, No . . . New Requirement for Mental Health and Substance Abuse Benefits
We often encounter questions relating to the fair market value of a private company for granting stock options where the company has experienced an event, such as receiving a signed term sheet, which almost certainly will result in a higher fair market value when the company had intended to grant options at an earlier price but had not gotten the grants completed. Usually, the questions focus on when the company has to consider the business event and whether it would be possible to quickly make the awards at the price that was promised. Almost always, this is short term thinking that could turn out to be long term expensive in a risky tax position. Read more
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In the Darkness at the Edge of Town…Cybersecurity Guidance for Plan Participants, Record-Keepers, and Plan Sponsors From The EBSA
/in 401(k) Plans, 403(b) plans, 457(b) plans, 457(f) plans, Defined Benefit Plans, DOL, ERISA, ESOPs, Fiduciary Duties, Retirement Plansby John Ludlum
On April 14, 2021, the Employee Benefits Security Administration (“EBSA”) published guidance for plan sponsors, plan fiduciaries, record-keepers, and plan participants on best practices for maintaining cybersecurity. This is the first time that the EBSA has given cybersecurity guidance to the estimated 34 million defined benefit plan and the 106 million defined contribution plan participants with an estimated $9.3 trillion in assets. Read more
These Boots Are Made For Walking…But If You Quit, You Might Not Get the COBRA Subsidy
/in DOL, ERISA, Health & Welfare Plans, IRS, Legislationby Brenda Berg
April 8 UPDATE: The COBRA subsidy model notices referenced in this article are now available: https://www.dol.gov/agencies/ebsa/laws-and-regulations/laws/cobra/premium-subsidy. Employers should be working with their COBRA administrator on how to notify eligible individuals about the subsidy.
The COBRA subsidy from the most recent COVID-19 stimulus bill – The American Rescue Plan Act of 2021 (ARPA) – is now in effect. An assistance-eligible individual can have 100% of COBRA premiums subsidized for the periods beginning April 1, 2021 through September 30, 2021. All plan sponsors must offer the subsidy – it is not optional.
Eligible former employees and spouses/dependents (qualified beneficiaries) can receive the subsidy if they are already on COBRA. In addition, individuals who declined or dropped COBRA coverage can elect into COBRA under a “second bite at the apple” election process, if they are still in the remaining period of COBRA coverage that would have applied originally. Read more
Like a Surgeon… Got Providers on my Mind
/in Health & Welfare Plansby Lyn Domenick
The myriad health and welfare plan requirements in the Consolidated Appropriations Act, 2021 include those for a group or individual health plan to maintain a cost comparison tool and an accurate and up-to-date network provider/facility directory for participant use. Each of these requirements is effective for plan years beginning on and after January 1, 2022. While the group health plan is responsible for compliance, in most cases the plan’s TPA will in practice be supplying this information to participants. Read more
Whoomp There It Is…The IRS Issues Further Flexible Spending Account Relief under Notice 2021-15
/in Cafeteria Plans, IRSBy Benjamin Gibbons
Earlier this year, Bret Busacker explained the FSA relief enacted as part of the Consolidated Appropriations Act, 2021 (CAA) in a blog post titled “Bridge Over Troubled Water: 2021 Flexible Spending Account Relief in the Consolidated Appropriations Act, 2021.” The FSA relief in the CAA essentially permits employers to eliminate the “use it or lose it rule” for 2020 and 2021 and to permit mid-year FSA changes to both health FSAs and dependent care FSAs. The IRS recently issued additional guidance with respect to these FSA relief provisions in IRS Notice 2021-15 (the “Notice”). Read more
If I Could Turn Back Time… And Then Add a Year
/in Cafeteria Plans, DOL, Fiduciary Duties, Health & Welfare Plansby Leslie Thomson and Brenda Berg
Last October, Brenda Berg posted a blog titled “I’m Just Waiting on an… End to the Extended ERISA Deadline Periods.” In that blog, Brenda explained that the IRS and DOL extended certain deadlines applicable to retirement plans and health and welfare plans.
In sum, under last year’s DOL guidance, employers were required to disregard the period from March 1, 2020 until 60 days after the president declared the COVID Pandemic National Emergency over (the “Outbreak Period”) in calculating employee notices and election deadlines for deadlines including the following:
Read more
But I Said No, No, No . . . New Requirement for Mental Health and Substance Abuse Benefits
/in DOL, ERISA, Health & Welfare Plans, Litigation, State Benefits LawsBy Kevin Selzer
Employee benefit plans are subject to numerous laws that restrict, or at least limit, discrimination within the plans. Many benefit plan nondiscrimination rules focus on whether highly and non-highly compensated employees are receiving equal treatment under those plans; however, the recently enacted Consolidated Appropriations Act, 2021 (CAA) is bringing some attention to an often-overlooked discrimination rule that prohibits group health plans from discriminating with respect to mental health and substance use disorder benefits (MH/SUD benefits). Read more
Oh, Making Bad Decisions…or Not Really Considering the Long Game for Stock Options
/in Equity Compensation, Executive Compensationby John Ludlum
We often encounter questions relating to the fair market value of a private company for granting stock options where the company has experienced an event, such as receiving a signed term sheet, which almost certainly will result in a higher fair market value when the company had intended to grant options at an earlier price but had not gotten the grants completed. Usually, the questions focus on when the company has to consider the business event and whether it would be possible to quickly make the awards at the price that was promised. Almost always, this is short term thinking that could turn out to be long term expensive in a risky tax position. Read more