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
2022 IRS Annual Employee Benefit Plan Limit Updates
The IRS has issued Notice 2021-61 and Revenue Procedure 2021-45 setting forth its annual employee benefit plan limitations for 2022. Key changes, placed in bold in the chart below, include the following:
- Code Section 402(g) limitation on elective deferrals increased from $19,500 to $20,500.
- Code Section 408(p) limitation on elective deferrals for SIMPLE retirement account plans increased from $13,500 to $14,000.
- Code Section 415(c) maximum annual additions increased from $58,000 to $61,000.
- Compensation limit under Code Section 401(a)(17) increased from $290,00 to $305,000.
- HDHP Out of Pocket Maximum increased from $7,000 to $7,050 for self-only coverage and from $14,000 to $14,100 for family coverage.
- HSA Maximum Contribution Limit increased from $6,000 to $3,650 for self-only coverage and from $7,200 to $7,300 for family coverage.
- All adoption assistance limits and thresholds have increased.
- All QSEHRA and Archer MSA limits increased.
- Parking and transit fringe benefit contribution limits increased from $270 to $280 per month.
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DOL Proposes Expanded Use of ESG Factors in ERISA Plan Investment Decisions and Proxy Voting
The U.S. Department of Labor (DOL) published a proposed regulation on October 14, 2021, that would clarify how fiduciaries of private sector employee benefit plans should apply ERISA’s fiduciary duties of prudence and loyalty when making investment decisions and exercising shareholder rights. In part, the DOL’s changes to its “Investment Duties” regulation (29 C.F.R. §
Department of Labor Interprets Regulations Concerning Production of Audio Recordings and Transcripts of Phone Calls in Adverse Benefit Determinations
On June 14, 2021, the Department Labor (“DOL”) issued Information Letter 06-14-2021 to address whether ERISA requires plan fiduciaries to produce audio recordings and transcripts of telephone conversations between plan insurers and claimants.
The issue arose from a plan insurer’s denial of a claimant’s request for an audio recording. When it denied the request, the
PBGC Issues Interim Final Rule on Special Financial Assistance Available to Financially Troubled Multiemployer Pension Plans
The Pension Benefit Guaranty Corporation (“PBGC”) released its highly-anticipated interim final rule (the “IFR”) on July 9, 2021, providing methodology for calculating the amount of special financial assistance (“SFA”) available to certain financially troubled multiemployer pension plans (“MEPPs”) under the American Rescue Plan Act of 2021 (“ARPA”). The IFR also sets out additional details on
CRS Releases Report on Multiemployer Defined Benefit Pension Plans Potentially Eligible for Relief Under ARPA
On Friday, May 28, 2021, the Congressional Research Service (“CRS”) released its analysis of Multiemployer Defined Benefit Pension Plans (“MEPPs”) that are potentially eligible for special financial assistance under the American Rescue Plan Act, 2021 (“ARPA”). As we previously discussed in our article on ARPA’s special assistance for financially troubled MEPPs, a MEPP is eligible
Struggling Multiemployer Pension Plans Receive a Lifeline Under the American Rescue Plan Act of 2021
The multiemployer pension plan system is facing a funding crisis with over 100 plans projected to become insolvent in the next 10 to 20 years. This rate of plan insolvency was projected to cause the collapse of the Pension Benefit Guaranty Corporation’s (PBGC’s) multiemployer benefit insurance fund. Insolvency of both underfunded multiemployer pension plans and
Employee Benefit Provisions in the Consolidated Appropriations Act, 2021
President Trump signed into law the Consolidated Appropriations Act, 2021 (the Omnibus Bill) on December 27, 2020. The following update provides a summary of key employee benefit provisions in the Consolidated Appropriations Act.
The act expands and extends certain COVID-19 relief, including new qualified disaster relief for retirement plan distributions and temporary special rules
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.
2021 IRS Annual Employee Benefit Plan Limit Updates
The IRS has issued its annual employee benefit plan limitations for 2021.