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December 2013

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.

If you have any comments/suggestions concerning the information provided or the format used, we'd like to hear from you. Please contact Tulay.Turan@wolterskluwer.com.

 

Hot Topics in Employee Benefits Management:
HHS finalizes exchange program integrity rule, Employee Benefits Management Directions, Issue No. 551, November 5, 2013 — The Department of Health and Human Services (HHS) has issued a final rule that implements provisions of the Patient Protection and Affordable Care Act (ACA) with respect to the health insurance exchanges (also known as marketplaces).

Employers and plan sponsors prepare for Affordable Care Act's 2014 changes , Employee Benefits Management Directions, Issue No. 551, November 5, 2013 —  On Jan. 1, 2014, employers and plan sponsors will experience many significant changes because of the Patient Protection and Affordable Care Act (ACA), according to speakers at the annual employee benefits conference of The Groom Law Group, Chartered, Washington, D.C. The Internal Revenue Service and the U.S. Departments of Health and Human Services (HHS) and Labor (DOL) have released thousands of pages of rules and regulations under the ACA, many of which will come fully into force in 2014 and beyond.

IRS will allow some unused health FSA funds to be carried over to subsequent years , Employee Benefits Management Directions, Issue No. 552, November 19, 2013 — The IRS has issued modifications to the Code Sec. 125 rules for cafeteria plans that include changes to the "use it or lose it" rule for health flexible spending arrangements (FSAs) and clarification of the transition relief regarding changes in salary reduction elections for accident and health plans.

Departments issue final regulations on mental health and substance use disorder parity , Employee Benefits Management Directions, Issue No. 552, November 19, 2013 — The Departments of Labor, Health and Human Services and the Treasury have jointly issued a final rule increasing parity between mental health/substance use disorder benefits and medical/surgical benefits in group and individual health plans.

What's New in Employee Benefits Management:
FSAs  —  IRS Notice 2013-71 regarding the $500 carryover provision (see story above) is discussed at ¶38,020, ¶38,060 and ¶39,030.

2014 Social Security COLAs — The Social Security Administration has issued the benefit and wage base increases for 2014. For the amounts, see ¶2086, ¶5020 and ¶5030.

2014 pension COLAs — The IRS has released the retirement plan cost-of-living adjustments for 2014. For the amounts, see ¶2070.

2014 Medicare amounts — CMS has announced the Part A and Part B premiums and deductibles for 2014. For the amounts, see ¶53,140.

What's New in Benefits Answers Now (BAN):
IRS will allow some unused health FSA funds to be carried over to subsequent years. The IRS has issued modifications to the Sec. 125 rules for cafeteria plans that include changes to the "use it or lose it" rule for health flexible spending arrangements (FSAs). Under the newly-issued guidance, the IRS is stating that employers have the option to amend their cafeteria plans to provide for the carryover of up to $500 in unused health FSA contributions to the immediately following, and, if the employer wishes, entire, plan year. See the discussions at ¶20,150 and ¶73,040 for more information about the carryover provision.

Departments issue final regulations on mental health and substance use disorder parity. The Departments of Labor, Health and Human Services (HHS) and the Treasury (Departments) have jointly issued a final rule increasing parity between mental health/substance use disorder benefits and medical/surgical benefits in group and individual health plans. The final rule implements the Paul Wellstone and Pete Domenici Mental Health Parity and Addiction Equity Act (MHPAEA), and ensures that health plan features like copays, deductibles and visits limits are generally not more restrictive for mental health/substance abuse disorders benefits than they are for medical/surgical benefits. The rule generally applies to group health plans and health insurance issuers offering group health insurance coverage for plan years beginning on or after July 1, 2014. An overview of the MHPAEA can be found at ¶21,680.

IRS announces pension plan limitations for 2014. The IRS has announced the 2014 cost-of-living adjustments (COLAs) to dollar limitations on benefits and contributions, annual compensation limits, the threshold amount for determining excess distributions, compensation amounts for SEPs, and other dollar limitations applicable to retirement plans. More information about the pension plan limits for 2014 can be found at ¶10,080, ¶10,660, ¶10,700, ¶10,760, ¶10,800, ¶11,190, ¶11,220, ¶11,230, ¶11,350, ¶11,930, ¶12,120, ¶12,240, ¶14,860, ¶14,990, and ¶15,100.

IRS issues 2014 transportation, LTC, adoption, MSA COLAs. The IRS has issued a number of cost-of-living adjustments (COLAs) to various types of benefits, including transportation fringe benefits, long-term care insurance contracts, adoption assistance, and medical savings accounts (MSAs). To find out more about the adjusted limits for 2014, see ¶20,350, ¶70,050, ¶74,330, ¶81,290, ¶81,300, and ¶81,310.

PBGC increases maximum monthly guarantee for 2014. The Pension Benefit Guaranty Corporation (PBGC) has announced that the maximum insurance benefit for participants in underfunded pension plans terminating in 2014 is $4,943.18 per month or $59,318.16 per year for those who retire at age 65. Find out more about the PBGC’s role in plan terminations at ¶14,400.

What's New in Spencer’s Benefits Reports:
Pension COLAs. The IRS has released the 2014 cost-of-living adjustments to retirement plan limits. This report provides the 2014 limits for IRC Sec. 415, 401(k), and 401(a)(17). (Report 100.-1).

Cafeteria Plans. Sec. 125 enables employees to make benefits selections and to pay for the benefits they choose on a pretax basis through salary reduction. This report describes cafeteria plans, including participation, nondiscrimination, and benefits provisions (Report 350.-1).

Health Plan Eligibility. The ACA and HIPAA significantly changed how eligibility provisions in group health plans can be designed by employers. These changes are set forth in this report (Report 320.-1).

Contraceptive Coverage. Before the ACA, several states mandated that group health plans cover contraceptive drugs and devices. The ACA requires that group health plans cover these items at no-cost. This report analyzes contraceptive coverage before and after health reform (Report 402.2.-1).

Medicare Primer. This report describes the basic provisions of Medicare Part A, B, and C, and provides a discussion on how Medicare was impacted by the Part D law and the ACA (Report 324.4.-1).

New Pension/Benefits Titles Added:
401(k) Advisor, December 2013 issue
Employee Benefit Plan Review, December 2013 issue
Executive Compensation Answer Book, 2014 Cumulative Supp to the 8th Edition
Flexible Benefits Answer Book, 2014 Cumulative Supplement to the 6th Edition
Mandated Benefits 2014 Compliance Guide
Nonqualified Deferred Compensation Answer Book, 8th Edition
The 2014 Pension Answer Book
Pension Benefits, December 2013 issue
State by State Guide to Human Resources Law, 2014 Edition
Value of Pensions in Divorce, 5th Edition