COVID-19_Blog_Masthead

What relief is provided by EBSA Notice 2020-01?

Posted by Bonita Hatchett-Bodle

May 6, 2020 2:23:01 PM

The Departnet of Labort's (DOL’s) Employee Benefits Security Administration (EBSA) issued Notice 2020-01 (Notice) in recognition that the COVID-19 crisis may impede efforts to comply with various requirements and deadlines under ERISA. The Notice provides an extension on the deadlines for furnishing certain required notices or disclosures to plan participants, beneficiaries, and other persons to grant plan fiduciaries and plan sponsors additional time in which to meet their obligations under Title I of ERISA during the COVID-19 outbreak.

Read More

Topics: EBSA Notice 2020-1, ERISA Title I Reporting and Disclosure

Does EBSA Notice 2020-1 provide any relief for multiple welfare arrangements?

Posted by Bonita Hatchett-Bodle

May 6, 2020 2:21:10 PM

Yes. The Notice specifically provides that relief is available for Form M-1 filings required for multiple employer welfare arrangements (MEWAs) and certain entities claiming exceptions for the same time period as the Form 5500 filing relief that is provided under Internal Revenue Service (IRS) Notice 2020-23.

Read More

Topics: EBSA Notice 2020-1, ERISA Title I Reporting and Disclosure, MEWA

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:

Read More

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:

Read More

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

Does the relief provided by EBSA Notice 2020-01 extend to participant contributions and loan repayment?

Posted by Bonita Hatchett-Bodle

May 6, 2020 2:14:02 PM

Yes. Under the Notice, the Department of Labor (DOL) will not take enforcement action with respect to a temporary delay in forwarding participant payments and withholdings to employee pension benefit plans during the period from March 1, 2020, and ending on the 60th day following the announced end of the national emergency if the delay is solely attributable to the COVID-19 outbreak. However, employers and service providers must act reasonably, prudently, and in the interest of employees to comply as soon as administratively practicable under the circumstances.

Read More

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

Does the relief provided by EBSA Notice 2020-01 extend to blackout notices?

Posted by Bonita Hatchett-Bodle

May 6, 2020 2:11:57 PM

Yes. The Notice provides individual account plan administrators with relief from the requirement that 30 days' advance written notice be provided to participants before implementing a blackout period that restricts participants' ability to direct investments and to obtain loans and other distributions from the plan. The relief is available when a plan administrator is unable to comply with the advance notice requirement due to events beyond the reasonable control of the plan administrator. The Department of Labor (DOL) will not require plan administrators to make a written determination when seeking relief from the 30 days' advance notice requirement due to a pandemic, such as COVID-19.

Read More

Topics: EBSA Notice 2020-1, ERISA Title I Reporting and Disclosure, blackout notices

Back