The IRS issued Notice 2022-33, extending plan amendment deadlines for up to three years with respect to certain provisions of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the Bipartisan American Miners Act of 2019 (the Miners Act), and the Setting Every Community Up for Retirement Enhancement Act of 2019 (SECURE Act).
The Consolidated Appropriations Act (CAA) and Transparency in Coverage (TiC) Rule comprise the most comprehensive legislative and regulatory reforms facing group health plans since the Affordable Care Act.
In June 2022, the IRS launched a pre-examination pilot program for retirement plans that could help employers avoid costly penalties. The program aims to reduce the burden of, and time spent on, retirement plan audits, which are typically a time consuming endeavor for plan sponsors. The program ultimately should be good news for plan sponsors in terms of both financial penalties and, presumably, a more efficient audit process.
In a year already marked by overwhelming legislative and regulatory change, group health plans now must address yet another issue – abortion coverage in the wake of the U.S. Supreme Court’s recent decision in Dobbs v. Jackson Women’s Health Org. The Court overruled Roe v. Wade, eliminating the constitutional right to abortion and leaving states free to regulate the procedure – and health plan sponsors wondering what to do next.
The SECURE Act added a new disclosure requirement for sponsors of defined contribution plans that becomes effective this year. Plan sponsors of ERISA-covered defined contribution plans must provide participants with a lifetime income disclosure (at least annually) which estimates the monthly income that a participant’s account balance could produce if paid in the form of a qualified joint and survivor annuity or single life annuity stream of payments, rather than a lump-sum.
For participant-directed plans, the initial lifetime income disclosures must be incorporated into benefit statements no later than June 30, 2022. For plans under which participants do not direct the investment of their account, the disclosures must be on the statement for the first plan year ending on or after September 19, 2021. For most plans, this will be October 15, 2022.
Yesterday, the Biden Administration announced that effective January 15, 2022, insurance companies and group health plans will be required to provide expanded coverage of at-home/over-the-counter (OTC) COVID-19 tests. The announcement is designed to increase access to free testing.
As group health plan sponsors head into 2022 and contemplate a third year of COVID-19 related medical claims, many are confused about what COVID-19 related expenses are required to be covered at 100% cost-sharing and for how long.
Employers should work with their cafeteria plan or other third-party administrators to ensure that their health FSAs, HSAs, and/or HRAs permit employees to be reimbursed for the costs of home COVID-19 tests.
Investment consultants and other service providers who advise plan participants and fiduciaries about rollovers and investment choices received another reprieve from new rules governing that advice. But the reprieve is only temporary; those consultants and advisors must be prepared to comply by February 1, 2022.
Following announcements by both the IRS and the Social Security Administration, we now know most of the dollar amounts that employers will need in order to administer their benefit plans for 2022. The key dollar amounts for retirement plans and individual retirement accounts (“IRAs”) are shown on the front side of our 2022 limits card.
The reverse side of the card shows a number of dollar amounts that employers will need to know in order to administer health flexible spending accounts (“FSAs”), health savings accounts (“HSAs”), and high-deductible health plans (“HDHPs”), as well as health plans that are not grandfathered under the Affordable Care Act.
A laminated version of the 2022 limits card is available upon request. To obtain one or more copies, please contact any member of our Employee Benefits Group. You also can contact the Spencer Fane Marketing Department at 816-474-8100 or firstname.lastname@example.org.