IRS Releases Final 162(m) Regulations Implementing Statutory Changes

On December 18, 2020, the IRS released final regulations under 162(m) of the IRS Code to implement the Tax Cuts and Jobs Act (TCJA) changes as well as provide guidance to employers. Section 162(m) focuses on publicly held corporations and deductions for compensation paid to covered employees. This section does not allow these corporations to deduct compensation that exceeds $1 million per year. The TCJA changes the Read More

Doing the Math: Partial Plan Terminations and the Consolidated Appropriations Act

  The Consolidated Appropriations Act, 2021, signed into law on December 27, 2020 (the “Act”), changes a myriad of different rules for employer-sponsored retirement plans and health and welfare benefits. Among the more significant of the Act’s changes is a temporary rule to provide relief for certain events related to COVID-19 that would otherwise be considered partial retirement plan terminations (which can Read More

Appropriations Act Extends FFCRA Tax Credits But Does Not Extend FFCRA Paid Leave Requirements

The Consolidated Appropriations Act, 2021, signed into law on December 27, 2020, did not extend the December 31, 2020, expiration date for the paid leave requirements of the Families First Coronavirus Response Act (FFCRA). Therefore, FFCRA-covered employers are no longer required to provide emergency paid sick or family leave under federal law. However, the Act did extend the FFCRA tax credits for covered Read More

New COVID-19 Bill Puts Kibosh on Surprise Medical Billing Beginning in 2022

On December 27, 2020, the Consolidated Appropriations Act, 2021, was signed into law. The Act included a measure entitled the “No Surprises Act” to restrict medical providers from sending consumers surprise medical bills.  Once the Act goes into effect in 2022, consumers will not receive balance bills for the following: Emergency care; Transport by air ambulance; or Non-emergency care at an in-network Read More

IRS Adds to Missing Plan Participant Guidance

The IRS has released guidance regarding qualified plan distributions to state unclaimed property funds. Revenue Ruling 2020-24 covers the withholding and reporting requirements when a plan distribution is made to a state unclaimed property fund. Revenue Procedure 2020-46 modifies and updates prior guidance to make it easier for individuals who obtain benefits from a state unclaimed property fund to roll over their Read More

Are Pooled Employer Plans (PEPs) Poised to Change the Retirement Plan Landscape?

The Setting Every Community Up for Retirement Enhancement Act (SECURE Act) established a new structure whereby a group of unrelated employers could participate in a single defined contribution plan as of January 1, 2021.  Pooled Employer Plans (PEPs) must be administered by a Pooled Plan Provider (PPP), which acts as the plan sponsor, handling all fiduciary, administrative, and investment responsibilities. PPPs Read More

Departments Issue New Rule Requiring Group Health Plans to Disclose Health Care Cost Information

The Departments of Health and Human Services, Labor, and Treasury (“the Departments”) have issued the final rule on health care coverage transparency, imposing important new requirements on non-grandfathered health plans and self-insured plans to disclose health care cost and cost-sharing information. Group Health Plan Transparency Requirements For plan years beginning on or after January 1, 2022, plans must Read More

COVID-19 Tolling of Benefits Presents Challenges for COBRA and Medicare Administration

A joint notice issued by the DOL and IRS on May 4, 2020 required group health plans to extend certain timeframes for participants during the COVID-19 “outbreak period” (defined as the period from March 1, 2020 until 60 days after the announced end of the national emergency for COVID-19).  The Notice requires a tolling of the following COBRA deadlines: The 14-day deadline for plan administrators to furnish Read More

Agencies Issue Interim Final Rule on COVID-19 Preventive Services Coverage

The Departments of Treasury, Labor, and Health and Human Services have issued an interim final rule (IFR) regarding group health plan coverage of COVID-19 testing and vaccines. Under the Affordable Care Act (ACA), group health plan providers must provide certain preventive services with no cost sharing. Under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), preventive services related to Read More

Defined Contribution Lifetime Income Disclosures: Employer Considerations

The Setting Every Community Up for Retirement Enhancement Act (SECURE Act) added new lifetime income disclosure requirements to benefit statement rules under ERISA. On September 18, 2020, the Department of Labor (DOL) published an Interim Final Rule (IFR) to the Federal Register to implement the lifetime income disclosure requirements pursuant to the SECURE Act.  Once the lifetime income disclosure requirement Read More