The Consolidated Appropriations Act, 2021 (CAA) was signed into law on December 27, 2020. This major funding bill included the COVID-Related Tax Relief Act of 2020 (COVIDTRA) and the Taxpayer Certainty and Disaster Tax Relief Act of 2020 (TCDTR), which contained the following provisions affecting retirement plans: Money Purchase Pension Plan Distributions May Qualify as Coronavirus-Related Distributions The CAA Read More

Plaintiffs in an ERISA lawsuit against pharmacy benefits managers (PBMs) received another setback recently when the Second Circuit Court of Appeals upheld a district court ruling that defendants Anthem, Inc., and Express Scripts, Inc., did not violate ERISA’s fiduciary obligations because neither defendant acted as an ERISA fiduciary when entering into a contractual agreement that led to higher prescription costs for Read More

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

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

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

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

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

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

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