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Retirement Plan Issues and COVID-19: Additional Relief Issued By IRS

The IRS issued Notice 2020-23 (the “Notice”), postponing various employee benefit related deadlines under the Internal Revenue Code. Under the Notice, the due dates of many tax payments and filings that would ordinarily fall on or after April 1, 2020 through July 14, 2020 were automatically extended to July 15, 2020. For example, Forms 990 that would have been due for calendar year filers on May 15, 2020 and Form 990-T that would have been due for calendar year filers on April 15, 2020 are now not due until July 15, 2020. Note that this relief will not apply to Forms 5500 for plans with calendar year plan years since those Forms 5500 are due July 30, 2020, which is currently outside of the relief period. The Notice also provides relief to any plan performing one of 44 time-sensitive actions that are listed under Revenue Procedure 2018-58. To the extent… Continue Reading

Agencies Update Group Health Plan Required Disclosure Documents

Federal agencies recently issued updated versions of certain documents that are required to be disclosed to individuals under applicable employer-sponsored group health plans. A set of FAQs regarding the Affordable Care Act (“ACA”) was issued by the federal Departments of Labor (“DOL”), Health and Human Services (“HHS”), and Treasury (collectively, the “Departments”), which describe recent changes made by the Departments to the “summary of benefits and coverage” template under the ACA (“SBC”). Among other minor changes to the SBC, certain verbiage on the SBC and the associated uniform glossary were revised to reflect the prior elimination, as of January 1, 2019, of the tax penalty related to an individual’s failure to comply with the so-called “individual mandate” under the ACA. The FAQs also provide additional guidance regarding the updated SBC coverage examples calculator that was released by HHS late last year. The revised SBC and SBC coverage examples calculator each… Continue Reading

EEOC Provides Sample ADA Wellness Program Notice

The EEOC recently released a sample notice, along with a series of questions and answers, to assist employers that offer wellness programs in satisfying the notice requirement set forth in the final regulations regarding the compliance of employer-sponsored wellness programs with the Americans with Disabilities Act (“ADA”). Use of the sample notice is not mandatory, but employers that offer a wellness program are required to provide a notice to employees which informs them, in an understandable manner, of (i) the information that will be collected by the employer in connection with the wellness program, (ii) how such information will be used, (iii) who will receive it, and (iv) how it will be kept confidential. The effective date for compliance with the new ADA notice requirements is the first day of the plan year beginning on or after January 1, 2017. The sample notice is available here. The questions and answers are… Continue Reading

Health and Welfare Annual Notices

As open enrollment approaches for many group health plans, it is important to ensure that the plan has distributed certain required annual notices to its participants and their beneficiaries.  In many cases, inclusion of such notices in the plan’s annual enrollment materials will satisfy these notice requirements.  The following non-exhaustive list describes the various notices that group health plans must distribute annually. Summary Annual Reports. Summary of Benefits and Coverage. Health Insurance Portability and Accountability Act (“HIPAA”) Notice of Privacy Practices (updated for the new privacy regulations effective as of September 23, 2013). HIPAA Special Enrollment Notice. Women’s Health and Cancer Rights Act Notice. Medicare Part D Notice of Creditable or Non-Creditable Coverage (required prior to October 15). Child Health Insurance Program Reauthorization Act Notice. Patient Protection and Affordable Care Act Exchange Notice (required by October 1, 2013 and, for any employee hired after that date, within 14 days of… Continue Reading

Texas Bill Would Make Service via Facebook the Law

Texas lawmakers will consider a bill that would specifically allow for service of legal process via Facebook or other social media sites. House Bill 1989 was introduced earlier this week by Rep. Jeff Leach (R – Plano), a recently elected lawmaker and an associate at a Dallas law firm. The short bill provides that a Texas court may permit as a method of service “an electronic communication sent to the defendant through a social media website,” provided the court finds that: the defendant maintains a social media page on that website; the profile on the social media page is the profile of the defendant; the defendant regularly accesses the social media page account; and the defendant could reasonably be expected to receive actual notice if the electronic communication were sent to the defendant’s account. As we have previously noted, courts in Australia, New Zealand and the UK have permitted service… Continue Reading

Guidance Issued on Notice Requirements for Funding-Related Benefit Limitations in Defined Benefit Pension Plans

ERISA Section 101(j) requires a notice to be provided to participants and beneficiaries if a defined benefit pension plan becomes subject to certain funding-based benefit limitations under ERISA. The IRS issued Q&As that address the timing of the notice, the interaction of the notice requirement with the ERISA 204(h) notice requirement, who must receive the notice, required notice content including an example notice, and method of delivery. Notice 2012-46 can be found here.

September 2020
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