COVID-19_Blog_Masthead

Does EBSA Notice 2020-01 provide relief for noncompliance with the ERISA retirement plan loan and distribution procedures?

Posted by Bonita Hatchett-Bodle

May 6, 2020 2:19:37 PM

Yes. The Department of Labor (DOL) has taken a temporary non-enforcement position on retirement plan loan and distribution procedural deficiencies. Under the Notice, retirement plans that do not follow procedural requirements for plan loans or distributions imposed by the terms of the plan, will not be treated as in violation of Title I of ERISA if:

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Topics: CARES Act, EBSA Notice 2020-1, ERISA Title I Reporting and Disclosure, participant loans, distributions

What are the requirements for non-enforcement under EBSA Notice 2020-01 in regard to retirement plan loan related issues?

Posted by Bonita Hatchett-Bodle

May 6, 2020 2:16:32 PM

Under the Notice, the Department of Labor (DOL) will not consider any person to have violated Title I of ERISA, including the requirement that the loan be adequately secured by the account balance, solely because:

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Topics: CARES Act, EBSA Notice 2020-1, ERISA Title I Reporting and Disclosure, participant loans

What medical services must be provided under the CARES Act and the FFCRA without imposing any cost sharing?

Posted by Bonita Hatchett-Bodle

May 1, 2020 2:17:28 PM

Under the Families First Coronavirus Response Act (FFCRA) and as amended by the Coronavirus Aid, Relief, and. Economic Security Act (CARES Act), health plans must provide coverage and not impose any cost sharing (including deductibles, copayments, and coinsurance), prior authorization, or medical management requirements for the following services during the public health emergency due to COVID-19:

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Topics: FFCRA, CARES Act, COVID-19 medical services

What is the definition of “health plan” for purposes of complying with the requirement that COVID-19 related services be provided without cost sharing?

Posted by Bonita Hatchett-Bodle

May 1, 2020 2:13:31 PM

Health plans include group health plans and health insurance issuers offering group or individual health insurance coverage (including grandfathered health plans). Group health plans means insured and self-insured group health plans, including private employer group health plans, non-federal governmental plans (such as plans sponsored by states and local governments), and church plans.

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Topics: health plans, FFCRA, CARES Act, COVID-19 medical services

Which tests fall within the definition of “in vitro diagnostic tests” which must be provided without cost sharing under the CARES Act and the FFCRA?

Posted by Bonita Hatchett-Bodle

May 1, 2020 2:11:26 PM

In vitro diagnostic tests include serological tests for COVID-19 that are used to detect antibodies against the SARS-CoV-2 virus, and are intended for use in the diagnosis of the disease or condition of having current or past infection with SARS-CoV-2, the virus which causes COVID-19. If such other testing results in an order for, or administration of COVID-19 diagnostic testing, a health plan must provide coverage for the tests without cost sharing and without imposing prior authorization or other medical management requirements.

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Topics: health plans, FFCRA, CARES Act, COVID-19 medical services

Has the DOL and IRS waived the requirement that summaries of material modification be issued within 60 days?

Posted by Bonita Hatchett-Bodle

May 1, 2020 2:09:04 PM

Yes. Under the Public Health Services Act (PHSA), if a plan makes a material modification, as defined under ERISA, in any of the terms of the plan or coverage that would affect the content of the Summary of Benefits and Coverage (SBC) that is not reflected in the most recently provided SBC, and that occurs other than in connection with a renewal or reissuance of coverage, the plan or issuer must provide notice of the modification to enrollees not later than 60 days prior to the date on which the modification will become effective.

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Topics: Summary of Material Modifications, FFCRA, CARES Act

Under the Paycheck Protection Act, are employee benefits included in payroll costs?

Posted by Bonita Hatchett-Bodle

Apr 16, 2020 12:58:24 PM

The CARES Act limits the amount of compensation that may be included in the average payroll costs calculation to $100,000 per employee. The exclusion of annual compensation in excess of $100,000 applies only to cash compensation and not to non-cash benefits, including employer contributions to defined-benefit or defined-contribution retirement plans, payment for the provision of employee benefits consisting of group health care coverage, including insurance premiums and payment of state and local taxes assessed on compensation of employees. Accordingly, benefits costs that cause the total payroll to exceed $100,000 per employee may be included when determining the applicant’s maximum loan amount.

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Topics: CARES Act, payroll costs, Paycheck Protection Program

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