Thanks to a provision in the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), public employers may now allow their employees to access their retirement savings to help them cope with the financial impact of the COVID-19 pandemic. Prior to the enactment of this emergency retirement plan distribution option under the CARES Act, working employees were unable to receive distributions from governmental Read More
COVID-19 and Mid-Year Suspension of Employer Retirement Plan Contributions
Many companies facing financial pressure from the COVID-19 pandemic are examining opportunities to curtail operating costs, including the reduction or suspension of matching or nonelective contributions to 401(k) plans. Here are some considerations to help guide your decision-making when determining whether to reduce or suspend safe-harbor contributions: Reduction or Suspension of Employer Contributions to Read More
DOL Introduces New Safe Harbor for Retirement Plan Disclosures; Health and Welfare Plans Remain Subject to Existing Safe Harbor E-Disclosure Rules
By Anne Tyler Hall and Eric Schillinger, Hall Benefits Law On May 27, 2020, the Department of Labor (“DOL”) published a final rule on electronic disclosures of ERISA-required documents (the “Final Rule”) that relaxes previous disclosure guidelines and allows retirement plan administrators to deliver documents to participants using modern electronic methods (the “2020 Safe Harbor”). Importantly, the Final Rule Read More
CARES Act Restricts Loans Used to Enhance Senior Executive Compensation
One of the most critical provisions in the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) is financial relief for U.S. businesses in the form of federal loan programs aimed at keeping Americans employed and companies solvent. However, there are certain restrictions on how federal loan monies may be deployed, including a prohibition on using these loans or loan guarantees to enhance senior executive Read More
CARES Act Makes Sweeping Changes to Health and Welfare Benefit Plans
The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) went into effect on March 27, 2020, altering some of the rules for employer health and retirement plans. Group Health Plans Telehealth services. Under the CARES Act, high-deductible health plans with health savings accounts (HSAs) now cover telehealth services before a plan participant has met the deductible. Normal cost sharing (e.g., co-pays) Read More
CARES Act Expands Telehealth Coverage in HDHPs
Included in the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) are several provisions dealing with the expansion of telehealth services coverage, including for individuals currently enrolled in high deductible health plans (HDHPs): Section 3701 Participants in HDHPs -- including those with HSAs -- are no longer required to meet their deductibles before gaining access to telehealth services. Read More
IRS Provides COVID-19 403(b) Plan Relief
Due to the COVID-19 pandemic, the IRS has extended the remedial amendments deadline for Section 403(b) plans by three months, from March 31, 2020, to June 30, 2020. In September 2019, the IRS issued Revenue Procedure 2019-39 that set remedial amendment periods for making amendments to 403(b) plans. That guidance was updated by the IRS’ recent deadline extension announcement and includes the following: New Read More
Benefit Plan Cost Mitigation Alternatives in a COVID-19 Economic Downturn
As businesses struggle to come to grips with conducting “normal” operations in a “new normal” environment, the issue of cost reduction will certainly be on the table for many companies. One area that companies will likely be examining to reduce costs is employee benefits; here are some options for consideration: Set priorities. In looking for ways to reduce costs for employee benefit plans, you should look first Read More
CARES Act Provides Loan Forgiveness for Company Retirement and Health Plan Expenses
Signed into law on March 27, 2020, the Coronavirus Aid, Relief and Economic Security Act (CARES Act) features one-time stimulus payments to taxpayers, loans and grants to small businesses, and additional funding for health care and unemployment insurance. Two of the largest small business financial relief programs include the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) Program. Read More
COVID-19 Considerations for Incentive Compensation
The COVID-19 outbreak in the U.S. coincided with the timeframe for annual incentive awards for many companies and threw a sizable wrench into the decision-making process on how to structure compensation packages going forward. As companies navigate ways to incentivize and retain employees in this rapidly changing business environment, below are some key considerations when addressing the impact of COVID-19 on Read More
