November 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.
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Hot Topics in Employee Benefits Management:
Voluntary benefits help attract talent, build employee loyalty, expert says, Employee Benefits Management Directions, Issue No. 549, October 8, 2013 — Voluntary benefits, sometimes called "employee-pay-all benefits," are individual or group insurance products made available to employees through payroll deductions at the workplace. To find out more about voluntary benefits and why employers are offering them, Wolters Kluwer interviewed Beth Grellner, senior consultant and leader of the Group Health & Benefits Practice at Towers Watson, St. Louis.
"Spouse" and "marriage" determined by state in which same-sex marriage was recognized, EBSA says, Employee Benefits Management Directions, Issue No. 549, October 8, 2013 — The EBSA has released new guidance interpreting the Supreme Court's decision in United States v. Windsor, in which the High Court struck down certain provisions of the Defense of Marriage Act. In general, the terms "spouse" and "marriage" in Title I of ERISA and in related DOL regulations should be read to include same-sex couples legally married in any state or foreign jurisdiction that recognizes such marriages, regardless of where they currently live.
FAQs from CMS address federally-facilitated SHOP premiums, contributions, Employee Benefits Management Directions, Issue No. 550, October 22, 2013 — The Centers for Medicare & Medicaid Services (CMS) has issued Frequently Asked Questions (FAQs) on the federally-facilitated Small Business Health Options Program (FF-SHOP). The FAQs address premium calculations and employer and employee contributions.
IFEBP issues guide for educating employees about ACA, Employee Benefits Management Directions, Issue No. 550, October 22, 2013 — The International Foundation of Employee Benefit Plans (IFEBP) has released a new guide to help employers speak to their employees about the Affordable Care Act (ACA). The online guide, "Explaining the Affordable Care Act (ACA) to Your Workers: A How-To Guide," includes a top-ten list of tips for educating employees, a glossary of ACA-specific terms, a timeline detailing the implementation of the law and a fact sheet about what ACA means for employees.
What's New in Employee Benefits Management:
Health reform-related guidance on health care arrangements — EBSA's guidance, in the form of Technical Release 2013-03, on the application of two of the Affordable Care Act's (ACA) market reform provisions to certain employer health care arrangements is discussed at ¶39,065.
2014 per diem rates — The IRS has updated the rules for determining the amount of an employee's ordinary and necessary business expenses for lodging, meals, and incidental expenses while traveling away from home that are deemed substantiated under Reg. §1.274-5. The rates are at ¶158,155.
Mortality tables— The IRS has issued a notice providing updated static mortality tables for calendar years 2014 and 2015. For the updated tables, see ¶5650.
Disclosure of return information — The IRS has issued final regulations on disclosure of return information for health exchanges. For details, see ¶10,097.
What's New in Benefits Answers Now (BAN):
IRS issues proposed rules on information reporting under ACA. The IRS has issued two sets of proposed rules to implement the information reporting requirements under the Patient Protection and Affordable Care Act (ACA). The regulatory proposals reflect an ongoing dialogue with representatives of employers, insurers, other reporting entities and individual taxpayers. The regulations are proposed to apply for calendar years beginning after December 31, 2014. More information about the information reporting rules can be found at ¶20,069.
Agencies issue guidance on application of ACA’s market reforms to employer health care arrangements. The Employee Benefits Security Administration (EBSA) has issued guidance, in the form of Technical Release 2013-03 (TR), on the application of two of the ACA’s market reform provisions to certain employer health care arrangements. The TR applies for plan years beginning on and after January 1, 2014, but the guidance may be applied for all prior periods. See the discussion at ¶23,607 for more information about how the TR applies to health reimbursement arrangements (HRAs).
IRS provides guidance on changing plan years to delay effect of MAP-21 PBGC premium increases. The IRS has provided guidance to practitioners and plan sponsors who have asked if and how single-employer defined benefit pension plan sponsors may change a plan year to delay the effect of PBGC premium increases mandated by The Moving Ahead for Progress in the 21st Century Act (MAP-21). Find out more about this IRS guidance at ¶12,410.
“Spouse” and “marriage” determined by state in which same-sex marriage was recognized, EBSA says. The EBSA has released new guidance interpreting the Supreme Court’s decision in United States v. Windsor, in which the High Court struck down certain provisions of the Defense of Marriage Act that had the effect of denying federal benefits to legally married, same-sex couples. In Technical Release (TR) 2013-04, the EBSA provides guidance to plans, plan sponsors, fiduciaries, participants and beneficiaries on the decision’s impact on ERISA. To find out more about the EBSA guidance, see ¶20,650.
Health plan will not fail to qualify as HDHP because it provides preventive care without deductible. In Notice 2013-57, the IRS issued clarification that a health plan will not fail to qualify as a high-deductible health plan (HDHP) merely because it provides preventive health care without a deductible, as required by the Patient Protection and Affordable Care Act (ACA). Eligible individuals may establish health savings accounts (HSAs) if they have qualifying coverage under a HDHP. The ACA added PHSA Sec. 2713, requiring group health plans and health insurance issuers to provide benefits for certain preventive health services without imposing cost-sharing requirements. An overview of IRS Notice 2103-57 can be found at ¶21,095.
What's New in Spencer’s Benefits Reports:
ACA and Cafeteria Plans, HRAs. Several provisions in the ACA affect account-based plans such as Sec. 125 cafeteria plans and HRAs. This report discusses these provisions (Report 562.-1).
FMLA. The FMLA requires large employers to provide eligible employees with up to 12 weeks’ leave during any 12-month period for certain events or conditions. This report summarizes the major FMLA provisions (Report 327.1.-1).
PHI Model Notices. This report provides three model documents that employer plans might use in complying with the HIPAA privacy rules: a business associate contract; a sample privacy notice; and a sample authorization form (Report 502.-27).
Managed Care Basics. There are two main types of managed care plans: PPOs and HMOs. This report summarizes the basic characteristics of managed care systems (Report 313.-1).
Hardship Withdrawals. 401(k) plans are allowed provide employees with hardship withdrawals if the employee can show a financial need that can be met only by receiving a hardship distribution. This report explains the rules for providing hardship withdrawals (Report 225.-1).
New Pension/Benefits Titles Added:
401(k) Advisor (November 2013 issue)
Benefits Law Journal (Winter 2013 issue)
Defined Benefit Answer Book (2014 Supplement to the Fifth Edition)
Employee Benefit Plan Review (November 2013 issue)
Handbook on ERISA Litigation (2014 Supplement to the Third Edition)
Individual Retirement Account Answer Book (20th Edition)
Journal of Deferred Compensation (Winter 2014)
Journal of Pension Planning & Compliance (Winter 2014)
Pension Benefits (November 2013 issue)
Quick Reference to ERISA Compliance (2014 Edition)
SIMPLE, SEP & SARSEP Answer Book (19th Edition)