CARES Act Expands Employer-Paid Student Loan Debt Repayment

The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) provides numerous methods by which employers can expand existing programs or create new ones for the benefit of their employees. One such program, the Code Section 127 educational assistance program, now includes the ability for employers to pay up to $5,250 in 2020 toward an employee’s student loan debt. Educational Assistance Program Read More

Code Section 139 Qualified Disaster Relief Payments: Tax-Free Boon for Employees Facing Coronavirus-Related Financial Hardship

When disasters like the COVID-19 pandemic strike, companies look for ways to help employees make it through the crisis. One of the ways employers can help employees who are experiencing financial hardship due to COVID-19 quarantine or stay-at-home orders is by making qualified disaster relief payments that are tax-free under Internal Revenue Code Section 139. Qualified disaster relief payments are not included as Read More

Employer Resource: Overview of COVID-19 Legislation and Guidance Related to Health and Welfare Benefits

By Anne Tyler Hall and Eric Schillinger, Hall Benefits Law The COVID-19 pandemic has significantly impacted all aspects of the U.S economy and the business operations of small and large employers alike. To mitigate the harm from the pandemic to employers, the government has enacted major legislation and issued numerous guidance in the past few months pertaining to COVID-19, including rules that address various Read More

Supreme Court Rules in Favor of Health Insurers in $12B ACA Risk Corridor Case

On April 27, 2020, the U.S. Supreme Court ruled in Maine Community Health Options v. United States that health insurance companies that lost money on policies offered on the health benefit exchanges created by the Affordable Care Act (ACA) were entitled to recoup those losses from the government. Background Congress created “risk corridors” as part of the ACA to help health insurance companies balance the risk of Read More

CARES Act Expansion of In-Service Withdrawals Highlights 403(b) Plan Surrender Charge Disparity

The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) includes provisions that allow retirement plan sponsors to provide plan participants the opportunity to withdraw funds from a defined contribution retirement plan -- IRA, 403(b), 457(b) or 401(k) -- if they are facing adverse financial consequences due to the COVID-19 pandemic. Withdrawal Qualifications The CARES Act allows for withdrawals of up to Read More

New DOL E-Disclosure Rule Now Allows E-Delivery of Benefit Plan Documentation

On May 27, 2020, the Department of Labor (DOL) published its final rule on Default Electronic Disclosure by Employee Pension Benefit Plans Under ERISA, establishing a new alternative safe harbor that allows benefit plan administrators to provide ERISA retirement plan disclosures to plan participants via email, website posting, or mobile app with relaxed requirements. Those who still wish to receive hard copies of Read More

Certain CARES Act Loans Contingent on Limits to Executive Pay

Under Section 4003 of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the Secretary of the Treasury is authorized to provide up to $500 billion in loans, loan guarantees, and other investments to support eligible businesses, states, and municipalities affected by the COVID-19 pandemic. Section 4004 of the CARES Act imposes limits on executive compensation as a condition of receiving this Read More

Hall Benefits Law Sharpens Focus on Excellence, Selects Chief Operating Officer, Lead ERISA Counsel Ahead of Seventh Anniversary

ATLANTA, June 30, 2020 /PRNewswire/ -- Having increased its national reach to 30 states in less than seven years, in the second quarter of 2020 boutique ERISA law firm Hall Benefits Law added leadership in the form of Lead ERISA Counsel and Chief Operating Officer. Robert Forman and Kenneth Beaver were selected for these roles through a nationwide search with an emphasis on years of experience and demonstrated Read More

IRS Extends 403(b) and Pre-Approved Defined Benefit Plan Deadlines

The Coronavirus Aid, Relief, and Economic SecurityAct (CARES Act) has extended several important deadlines for sponsors of 403(b) and defined benefit plans: Initial remedial amendment period for 403(b) plans extended to June 30, 2020.  The initial remedial amendments deadline for 403(b) plans has been extended by three months, from March 31, 2020, to June 30, 2020.  Plan sponsors now have additional time to Read More

COVID-19 and 457(b) Unforeseeable Emergency Distributions

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