April 2014
From the editors of CCH's BENE and BAN products, here are hot topics from recent Employee Benefits Management Directions newsletters as well as recent explanatory updates in Employee Benefits Management. Also included are recent explanatory updates to the Benefits Answers Now product.
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Hot Topics in Employee Benefits Management:
Proposed regulations on excepted benefits provide guidelines, but employers should watch for final rules, expert says, Employee Benefits Management Directions, Issue No. 557, March 11, 2014 — On December 24, 2013, the Departments of Labor, Health and Human Services, and the Treasury issued
highly anticipated proposed regulations that would amend the definition of limited excepted benefits. To get a better handle on how the proposed rules on excepted benefits impact employers, Wolters Kluwer spoke with Joanna C. Kerpen, partner in the employee benefits practice group at McDermott Will & Emery LLP.
Final regulations implement 90-day waiting period, Employee Benefits Management Directions, Issue No. 557, March 11, 2014 — The Internal Revenue Service, the Department of Health and Human Services, and Employee Benefits Security Administration have jointly issued final regulations implementing the 90-day waiting period limitation under Public Health Service Act (PHSA) Sec. 2708.
Expert points to key facts to keep in mind about Additional Medicare Tax, Employee Benefits Management Directions, Issue No. 558, March 25, 2014 — Starting in 2013, the Patient Protection and Affordable Care Act (ACA) adds an Additional Medicare tax of 0.9% to earnings in excess of $200,000 ($125,000 for married filing separately and $250,000 for married filing jointly). Employers are responsible for withholding this tax only when wages exceed $200,000, regardless of the filing status an employee claims on the Form W-4. Wolters Kluwer recently interviewed Debera Salam, Director of Payroll Information Services, Ernst & Young LLP, who had key points for employers in their administration of this new tax.
Final regulations allow combined reporting by applicable large employers and health insurance providers, Employee Benefits Management Directions, Issue No. 558, March 25, 2014 — The IRS has issued two sets of final regulations regarding health insurance reporting. T.D. 9660 provides final regulations for information reporting by providers of minimum essential health coverage (including employers with self-insured plans) under Code Sec. 6055 regarding the type and period of coverage. T.D. 9661 provides final regulations for information reporting by applicable large employer members under Code Sec. 6056 concerning health care coverage they offer to their full time employees.
What's New in Employee Benefits Management:
2015 benefit and payment parameters — Provisions related to the implementation and oversight of the risk adjustment, reinsurance, and risk corridor programs—the premium stabilization programs created by the Patient Protection and Affordable Care Act (ACA)—are detailed in a Centers for Medicare and Medicaid Services (CMS) final rule. The final rule also sets out key payment parameters for the 2015 benefit year. See ¶10,505 and ¶12,130 for details.
Information reporting — The IRS has issued two sets of final regulations regarding health insurance reporting. For more information, see the discussion at ¶10,240.
Waiting period limitation — Proposed and final regulations on ACA’s waiting period limitation have been updated at ¶10,100.
2014 Plan Reporting Calendar — The calendar at ¶2710 has been updated.
What's New in Benefits Answers Now (BAN):
Final regulations on employer mandate delay compliance for medium-sized employers. The IRS has issued final regulations implementing the Patient Protection and Affordable Care Act’s (ACA) employer shared responsibility provisions (employer mandate), giving medium-sized employers (50-99 full-time employees) until 2016 to comply with the mandate and providing significant transition relief for both medium-sized and larger employers (100 or more full-time employees). The final regulations apply to periods after December 31, 2014. Employers may rely on them prior to that. To find out more about the final regulations, see ¶20,010, ¶20,020, and ¶20,030.
Final regulations allow combined reporting by applicable large employers and health insurance providers. The IRS has issued two sets of final regulations regarding health insurance reporting. T.D. 9660 provides final regulations for information reporting by providers of minimum essential health coverage (including employers with self-insured plans) under Code Sec. 6055 regarding the type and period of coverage. T.D. 9661 provides final regulations for information reporting by applicable large employer members under Code Sec. 6056 concerning health care coverage they offer to their full-time employees. More information about the final health insurance reporting regulations can be found at ¶20,069.
Final regulations implement 90-day waiting period limitation. The Internal Revenue Service, the Department of Health and Human Services, and Employee Benefits Security Administration (the Departments) have jointly issued final regulations implementing the 90-day waiting period limitation. The Patient Protection and Affordable Care Act (ACA), prohibits group health plans and health insurance issuers offering group coverage from applying any waiting period of more than 90 days before coverage starts. Proposed regulations were issued on March 21, 2013. The final regulations adopt the proposed rules, with some changes. An overview of the 90-day waiting period regulations can be found at ¶20,110.
PBGC issues final regs simplifying its premium payment rules. The Pension Benefit Guaranty Corporation (PBGC) has issued final regulations designed to make its premium payment rules more effective and less burdensome. The regulations simplify and streamline due dates, coordinate the due date for terminating plans with the termination process, make conforming changes to the variable-rate premium rules, clarify the computation of the premium funding target, reduce the maximum penalty for delinquent filers that self-correct, and expand premium penalty relief. The regulations are effective April 10, 2014. Find out more about the premium payment rules at ¶14,560.
EBSA issues proposed regs that would require service providers to furnish “guide” to required service and fee disclosures. The Employee Benefits Security Administration (EBSA) has issued proposed regulations that would amend the fee disclosure rules issued in February 2012. The proposed amendment would require service providers to furnish plan fiduciaries with a "guide" to required initial disclosures that are contained in multiple or lengthy documents. See the discussion at ¶10,935 for more information about these proposed regulations.
What's New in Spencer’s Benefits Reports:
ACA’s Employer Mandate. The HHS, DOL, and IRS has issued final regulations on the ACA’s employer mandate, which delays compliance with the mandate for employers with 50 to 99 employees until 2016 (Reports 550.-1 and 550.1.-1).
Covered Compensation Tables. The amount of a participant’s covered compensation is an important element in applying the Sec. 401(l) permitted disparity rules to integrated defined benefit plans. This report reproduces the covered compensation tables for the years 2012 to 2014 (Report 174.4.-45).
Essential Health Benefits. Under the ACA, all plans sold on an exchange must provide an essential health benefits package (Report 541.-1).
ERISA Bonding Requirements. This report summarizes the bonding requirements under ERISA, including persons who must be bonded, and the scope, term, and amount of the bond (Report 605.3.-1).
Wellness Programs. This report summarizes final regulations on clarifying requirements for wellness programs, as well as the changes made by the ACA (Report 326.-3).
New Pension/Benefits Titles Added:
401(k) Advisor (March 2014)
Benefits Law Journal (Spring 2014)