ERIC Urges DOL to Ensure Any Guidance on Brokerage Windows is Narrowly Tailored to Address Specific Concerns

The ERISA Industry Committee (ERIC) submitted comments to the Department of Labor (DOL) responding to the agency’s request for information on brokerage windows in retirement plans.

ERIC provided the DOL with information regarding the use of brokerage windows in large retirement plans. ERIC explained that large retirement plans offer a variety of investment options to meet the diverse needs of their plans’ participants.

To read more, click here.

DOL Issues Guidance on Stop-Loss Insurance

In Technical Release No. 2014-01: Guidance on State Regulation of Stop-Loss Insurance, the U.S. Department of Labor indicates that:

"Under current law, employers and other sponsors of group health plans may either provide coverage through an insurance contract or instead, pay benefits directly, as claims occur. In general, private sector employment-based group health plans that self-insure are not subject to State health insurance laws, including coverage laws, rating policies, and certain other State consumer protections applicable to health insurance...Employers and other sponsors of self-insured group health plans, especially small employers, may face large fluctuations in claims, and they frequently seek to reduce this risk by purchasing stop-loss insurance."

To read more, click here.

Agencies Issue More ACA FAQs

In "FAQs about Affordable Care Act Implementation (Part XXII)", the the Departments of Labor (DOL), Health and Human Services (HHS), and the Treasury indicate that:

"[T]hese FAQs answer questions from stakeholders to help people understand the new law and benefit from it, as intended...On September 13, 2013, DOL and the Treasury published guidance on the application of the market reforms and other provisions of the Affordable Care Act to health reimbursement arrangements (HRAs), certain health flexible spending arrangements (health FSAs) and certain other employer health care arrangements.(1)HHS issued contemporaneous guidance to reflect that HHS concurs in the application of the laws under its jurisdiction as set forth in the DOL and Treasury Department guidance.(2) Subsequently, on May 13, 2014, two FAQs were made available on the IRS website addressing employer health care arrangements.(3)"

To read more, click here.

Buck Consultants Analyzes Excepted Benefits Guidance

In "Final Regulations Address Limited-Scope Vision and Dental Benefits and EAPs," Buck Consultants, a Xerox Company indicates that:

"The Departments issued final regulations addressing limited-scope vision and dental, long-term care benefits, and EAPs as HIPAA-excepted benefits. Based on comments regarding the proposed regulations, these final regulations make minor but significant changes. The regulations provide guidance and relief for employers sponsoring these affected benefits and should be carefully reviewed for implementation in 2015. Guidance discussing “wraparound” benefits, introduced in the proposed regulations, will be issued at a future date."

To read more, click here.

ERIC members and trial members can read more here.

DOL Posts Most Recent Retirement Plan Data From Forms 5500

In “Private Pension Plan Bulletin: Abstract of 2012 Form 5500 Annual Reports”, the U.S. Department of Labor analyzes the most recent data on retirement plans based on 2012 Form 5500 annual reports. The bulletin indicates that the total amount of assets held by retirement plans has increased by 10% to $6.98 trillion in 2012 and the total number of active participants increased from 90.2 million to 91.3 million. The bulletin also states that contributions to retirement plans also increased by 3.5 percent in 2012 to $481.6 billion.

To read more, click here.

Agencies Post New FAQs on Cost-Sharing Limits

In "FAQs About Affordable Care Act Implementation, Part XXI", the U.S. Departments of Labor, Health and Human Services (HHS), and the Treasury state that:

"Based on comments received, set forth below is an additional FAQ regarding the [maximum out-of-pocket] requirements. This FAQ addresses only group health plans’ and group health insurance issuers’ obligations under section 2707(b) of the PHS Act. For non-grandfathered health plans in the individual and small group markets that must provide coverage of the essential health benefit package under section 1302(a) of the Affordable Care Act, additional requirements apply."

To read more, click here.

DOL Provides Guidance on Missing Participants

In a recent article, "What to Do with Missing Participants: Department of Labor Provides Guidance", Covington & Burling explains that:

"When a defined contribution plan terminates, the plan administrator must distribute participants’ accounts as soon as administratively feasible. However, participants do not always update the plan administrator when their contact information changes, and some participants may not be responsive when the plan administrator requests directions on how to distribute their accounts."

To read more, click here.

DOL Issues Guidance on Missing Participants in Defined Contribution Plans

In Field Assistance Bulletin No. 2014-01, the U.S. Department of Labor (DOL) addresses missing participants in defined contribution plans. 

The guidance indicates that fiduciaries should use certified mail, check related plan and employment records, ask the designated plan beneficiary, and use free electronic tools. 

The DOL also includes options to be used when the plan is terminating and a distribution to a missing participant needs to be made.

Field Assistance Bulletin No. 2014-01 is available here.

U.S. Department of Labor Delays Definition of Fiduciary Re-Proposal Again

In “DOL Delays Fiduciary Redefinition Proposal Again”, PlanSponsor.com explains that the U.S. Department of Labor has once again delayed the re-proposal of the definition of fiduciary / conflict of interest rule guidance. PlanSponsor.com explains that “The Department of Labor (DOL) is now saying its re-proposal of what it calls “Conflict of Interest Rule-Investment Advice” will be issued in January 2015. The new date was announced in its Semiannual Regulatory Agenda – Spring 2014. The Employee Benefits Security Administration (EBSA) first proposed the rule in October 2010, but decided in 2011 to re-propose the rule, in part due to response from the public…”

To read more, click here.

ERIC Urges DOL to Exclude Large Plans from Fee Disclosure Guides

The ERISA Industry Committee (ERIC) recently urged the Department of Labor (DOL) to exclude large plans from its proposal to require service providers to distribute a guide or similar tool to fiduciaries in order to satisfy the disclosure regulations under section 408(b)(2) of the Employee Retirement Income Security Act.

The DOL in March 2014 proposed to collect information in order to explore the current practices and effects of the 408(b)(2) regulations and evaluate the need for a guide to help plan fiduciaries understand the information being disclosed to them. The DOL indicates that it is planning to conduct focus groups on small retirement plans. ERIC’s letter expresses concern that the DOL’s focus on small plans may cause it to assume that similar issues exist for large plans.

To read more, click here.

Agencies Publish FAQs on COBRA Notice and Out-of-Pocket Limits

The Departments of Labor (DOL), Health and Human Services (HHS), and the Treasury recently published "FAQs About Affordable Care Act Implementation (Part XIX). The FAQs state:

"Set out below are additional Frequently Asked Questions (FAQs) regarding implementation of various provisions of the Affordable Care Act. These FAQs have been prepared jointly by the Departments of Labor (DOL), Health and Human Services (HHS), and the Treasury (collectively, the Departments). Like previously issued FAQs (available at http://www.dol.gov/ebsa/healthreform/ and http://www.cms.gov/cciio/resources/fact-sheets-andfaqs/ index.html), these FAQs answer questions from stakeholders to help people understand the new law and benefit from it, as intended." 

The FAQs address "Updated Department of Labor Model Notices" and "Limitations on Cost-Sharing under the Affordable Care Act".

The FAQs are available here.

DOL Issues Proposed Regulation to Require a Guide for 408(b)(2) Disclosures

The U.S. Department of Labor has issued a proposed regulation that would amend the final fee disclosure regulations requiring service providers to provide a “guide” to plan fiduciaries to assist them in reviewing the detailed fee disclosures. The final fee disclosure regulation or “408(b)(2) regulation” required that service providers to retirement plans provide certain detailed disclosure regarding fees charged to the plan and participants. This proposed regulation would require service providers to also provide a summary document or “guide” with the initial fee disclosures to plan fiduciaries if the fee disclosures are contained in “multiple or lengthy documents.”

ERIC members and trial members can read more here.
The DOL Fact Sheet is available here.
The DOL News Release is available here.
The proposed regulation is available here.

ERIC Offers Recommendations on Proposed Changes to Excepted Benefits Definition

In a recent press release, the ERISA Industry Committee (ERIC) states that:

"The ERISA Industry Committee (ERIC) on March 7 offered a series of recommendations to make sure that plan sponsors may continue to make their employee assistance programs available to all of their employees.

The proposed regulations issued in December 2013 by the Departments of Treasury, Labor, and Health and Human Services address concerns raised by ERIC that limited Employee Assistance Programs (EAPs) and similar benefits are considered group health plans and, thus, would have been required to comply with the market reform and minimum essential coverage (MEC) provisions under the Affordable Care Act (ACA), which would have disadvantaged many employees."

To read more, click here.
For a copy of ERIC's comment letter, click here.

Agencies Release Advance Copies of 2013 Form 5500 Annual Report

The Department of Labor, IRS, and Pension Benefit Guaranty Corporation recently released advance informational copies of the 2013 Form 5500 annual return/report and related instructions.

Among the changes and modifications to the Form 5500 and Form 5500-SF is a new section “Form M-1 Compliance Information,” reflecting final rules published by DOL under the Affordable Care Act concerning enhanced reporting requirements relating to health benefits provided through Multiple Employer Welfare Arrangements (MEWAs).

ERIC members and trial members can read more here.

DOL Semiannual Regulatory Updates Includes Item on Brokerage Windows

The Labor Department, Treasury Department and Internal Revenue Service, and Pension Benefit Guaranty Corporation recently issue their Semiannual Regulatory Updates for guidance projects the agencies intend to focus on during the upcoming year.

While the agency agendas primarily reflect the previously released guidance plans, it appears the Labor Department does have a new item on its agenda relating to standards for brokerage windows.

According to the agency rule list, the DOL’s Employee Benefits Security Administration (EBSA) will review the use of brokerage windows in participant-directed individual account retirement plans covered by ERISA.

ERIC members and trial members can read more here.

DOL Announces New Employees

The U.S. Department of Labor (DOL) has announced that Timothy Hauser has been selected as the Deputy Assistant Secretary for Program Operations for the Employee Benefits Security Administration (EBSA) and that Judy Mares joins the EBSA as Deputy Assistant Secretary. Mr. Hauser replaces Alan Leibowitz who retired on November 1, 2013 after 34 years of service.

To read more, click here.

Government Issues Final Mental Health Parity Rules

The government just issued the final mental health parity rules. In "Final Rules under the Paul Wellstone and Pete Domenici Mental Health Parity and Addiction Equity Act of 2008; Technical Amendment to External Review for Multi-State Plan Program", the government states:

"This document contains final rules implementing the Paul Wellstone and Pete Domenici Mental Health Parity and Addiction Equity Act of 2008, which requires parity between mental health or substance use disorder benefits and medical/surgical benefits with respect to financial requirements and treatment limitations under group health plans and group and individual health insurance coverage. This document also contains a technical amendment relating to external review with respect to the multi-state plan program administered by the Office of Personnel Management."

The Final regulation is available at www.dol.gov/ebsa/pdf/mhpaeafinalrule.pdf
FAQs about ACA Implementation Part XVII and Mental Health Parity Implementation are available at http://www.dol.gov/ebsa/faqs/faq-aca17.html
U.S. Department of Health and Human Services’ Study: Consistency of Large Employer and Group Health Plan Benefits with Requirements of the Paul Wellstone and Pete Domenici Mental Health Parity and Addiction Equity Act of 2008 is available at www.dol.gov/ebsa/pdf/hhswellstonedomenicimhpaealargeemployerandghpbconsistency.pdf
DOL news release is available at http://www.dol.gov/ebsa/newsroom/2013/13-2158-NAT.html

Department of Labor Announces Next ERISA Advisory Council Meeting

The U.S. Department of Labor announced on its website that:

"The next ERISA Advisory Council meeting is scheduled for 11/4-11/5/2013 in C5515-Room 4, US Department of Labor, 200 Constitution Ave NW, Washington DC 20210. The meeting is open to the public. The November 4 portion of the meeting, from 1 p.m.-5 p.m., will be a drafting session for the reports and recommendations which the Council will vote to approve at the November 5 session, which begins at 8:30 a.m. The meeting moves to Room S-2508 at 1 pm on November 5."

For more information, click here.

EBSA Told to Take Further Action to Oversee Alternative Investments

The Office of the Inspector General (OIG) recently issued a report titled "EBSA Needs to Provide Additional Guidance and Oversight to ERISA Plans Holding Hard-to-Value Alternative Investments". The report states that:

"EBSA has made efforts to improve its oversight of plans that hold hard-to-value alternative investments. Despite these efforts, however, EBSA must take further action to increase protections for participants and beneficiaries of plans investing in these types of investments. We found EBSA had not formalized into regulatory guidance a requirement that plan administrators identify and adequately support the fair value of hard-to-value investments nor implemented the 2006, 2008, and 2011 ERISA council recommendations on the same. As a result, plans are using poor practices in valuing these investments. Almost no plan administrator in our samples obtained an independent valuation or demonstrated an analytical process to determine the fair value of all their hard-to-value assets."

The report is available here.

New Article Explains Guidance on EAPs, HRAs and Health FSAs

A new article from Covington & Burling explains the recent Affordable Care Act guidance. The article, "New Guidance Explains How ACA Applies to EAPs, HRAs, and Health FSAs" states:

"The Departments of Labor and Treasury have released guidance (Technical Release 2013-03 and Notice 2013-54) clarifying the effect of the Affordable Care Act (“ACA”) on employee assistance plans (“EAPs”) and account-based arrangements, such as health reimbursement arrangements (“HRAs”) and health flexible spending arrangements (“health FSAs”)...

To read the article, click here.