New cybersecurity developments and observations, including those relating to U.S. Department of Labor review of cybersecurity issues, warrant prompt consideration by plan fiduciaries, including those plans covered by HIPAA. The following update includes recommendations to help ERISA retirement and health and welfare plan sponsors and responsible fiduciaries protect benefit plans and participants against cybersecurity risks
US Department of Labor Issues Highly Anticipated Cybersecurity Guidance for ERISA Plans
On April 14, 2021, the U.S. Department of Labor (DOL) released three-part guidance on cybersecurity issues for employee benefit plans, marking its first significant commentary on the issue since its comprehensive but nonbinding report in late 2016.
The DOL’s guidance provides tips and best practices for ERISA plan sponsors, responsible fiduciaries, recordkeepers, service providers, and
Employee Benefit Plan Developments—2020 Year in Review
Employee benefits professionals have faced many challenges in 2020.
The following update provides highlights of key developments that employers and other plan sponsors should consider as 2021 approaches. Read the full article.
Variable Hour Employee Benefits Eligibility Under COVID-19
The COVID-19 pandemic has forced many employers to make unanticipated changes to their workforce, with many retailers rolling out a combination of furloughs, layoffs, and breaks in service to address changing market demands and shelter-in-place orders. Other retailers, particularly in grocery and online markets, saw an unplanned spike in demand, and went on a hiring
DOL Finalizes Notice and Access Safe Harbor for Electronic Delivery of Retirement Plan Participant Communications
DOL has finalized a Notice and Access safe harbor for certain required disclosures to participants and beneficiaries of retirement plans. Employers may effectively rely on this safe harbor immediately. The safe harbor allows employers to provide more disclosures to more participants and beneficiaries via electronic means that was previously permissible. In addition to other requirements,
IRS Notices Provide COVID-19 Relief Covering Section 125 Cafeteria Plans and Flexible Spending Account Benefit Plans
The Internal Revenue Service recently issued a pair of notices to provide relief to participants in and sponsors of Section 125 Cafeteria Plans, health flexible spending account plans, and dependent care assistance programs. IRS Notice 2020-29 provides relief for midyear election changes (including new health plan coverage elections, enrollment changes, and revocations, as well as
US Department of Labor Issues Updated COBRA Model Notices and Related FAQS
On Friday, May 1, 2020, the U.S. Department of Labor (DOL) issued revised model general and election notices that can be used by plan administrators to address the notification requirements imposed by the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA). FAQs for the COBRA Model Notices were issued the same day. DOL’s FAQs provide
COVID-19 Relief for Employer-Sponsored Benefit Plans: Federal Government Announces Deadline Extensions and Other Short-Term Relief
The U.S. Departments of Labor, Treasury, and Health and Human Services have issued a joint notice that modifies certain benefit plan notice, reporting, and election deadlines imposed by ERISA and the Code. In addition, DOL’s Employee Benefits Security Administration and the Pension Benefit Guaranty Corporation, have issued additional short-term relief. The following update summarizes these