On November 16, the Internal Revenue Service (IRS) issued Announcement 2012-44, which contains guidance providing streamlined plan procedures for loans and hardship distributions to victims of Hurricane Sandy through Feb. 1, 2013. A hardship distribution or loan for a need arising from Hurricane Sandy may be made under these streamlined procedures from a “qualified employer […]
Author: Trucker Huss
The Patient Protection and Affordable Care Act (“PPACA”) requires that a public health insurance exchange (“Exchange”) be available in every state by January 1, 2014. These Exchanges will offer health coverage to individuals starting in 2014—and no individual can be precluded from enrolling in coverage due to a preexisting condition. Given that individuals are required […]
On November 20, 2012, the Department of Health and Human Services (“HHS”) issued the first major post-election guidance under the Patient Protection and Affordable Care Act (“PPACA”). The proposed regulations address two important issues facing employers that sponsor group health plans: Essential Health Benefits (“EHB”); and Minimum Value ESSENTIAL HEALTH BENEFITS General Rule First, an […]
The Additional Medicare Tax under section 9015 of the Patient Protection and Affordable Care Act takes effect January 1, 2013. Individuals will have to pay this 0.9 percent tax on any amounts that are both currently subject to the Medicare Tax and exceed certain thresholds. Employers, though not themselves responsible for paying the tax, must, […]
The Internal Revenue Service has announced the annual cost-of-living adjustments applicable to dollar limitations for pension plans and other retirement-related items for Tax Year 2013. Many of the pension plan limitations will change for 2013 because the increase in the cost-of-living index met the statutory thresholds that trigger their adjustment. However, other limitations will remain […]
On September 28, 2012, Governor Jerry Brown signed into law a bill (S.B. 1234, the California Secure Choice Retirement Savings Trust Act) that would require private sector employers to enroll their employees in a payroll deposit retirement savings arrangement called the California Secure Choice Retirement Savings Investment Program “Program”). It is not clear whether the […]
In August, the Department of the Treasury, the Department of Labor, and the Department of Health and Human Services (the “Departments”), issued guidance on how to determine full-time employee status for purposes of the employer shared responsibility provisions (sometimes referred to as the “pay or play” provisions) of the Patient Protection and Affordable Care Act […]
In Notice 2010-80, the Internal Revenue Service (“IRS”) provided a remedial period until December 31, 2012, to correct nonqualified plans or agreements subject to Section 409A of the Internal Revenue Code (“Section 409A”) that pay compensation at separation from service, but base the timing of the payment on when a release of claims is submitted. […]
On April 17, 2012, the Internal Revenue Service issued proposed regulations implementing the annual fee imposed by the Patient Protection and Affordable Care Act of 2010 (“PPACA”) on health insurance issuers and plan sponsors to fund the Patient-Centered Outcomes Research Trust Fund(the “PCOR Fund”). According to the proposed regulations, health insurance issuers and sponsors of […]
On September 7, 2012, a unanimous panel of the U.S. Court of Appeals for the Sixth Circuit held in United States v. Quality Stores, Inc., 110 AFTR 2d ¶2012-5253 (CA6 9/7/12) that payments which were made pursuant to two separate employer severance plans, to employees upon their involuntary termination of employment because the employer was […]
In its next term, the U.S. Supreme Court will address a split among the federal Circuit Courts of Appeals regarding whether equitable defenses may limit a plan’s reimbursement rights in an action for equitable relief under the Employee Retirement Income Security Act of 1974 (“ERISA”), despite express plan terms that disclaim such defenses or give […]
What are Medical Loss Ratios? The Patient Protection and Affordable Care Act added a new Section 2718 to the Public Health Service Act that requires health insurance issuers to report how they spend premium dollars, and requires that insurers spend a minimum percentage of premiums on health care services and quality improvement activities. Insurers in […]
A considerable controversy has arisen regarding U.S. Department of Labor (the “DOL”) guidance on the participant disclosures a defined contribution plan sponsor is required to provide if the plan’s investment platform offers brokerage windows, self-directed brokerage accounts or similar arrangements (collectively referred to here as “brokerage windows”). The core concerns are that the guidance may […]
This article provides a list of issues that employers should consider when preparing for compliance with the various provisions of the Patient Protection and Affordable Care Act (“PPACA”). This article is not a technical explanation of the provisions; rather it lists some interesting issues that should be noted by employers, which may not be obvious […]
On June 28, 2012, the United States Supreme Court issued its long awaited and intensely debated decision on the constitutionality of the Patient Protection and Affordable Care Act (the “Affordable Care Act” or “Act”). Given the extensive media coverage, most are likely aware that, with the exception of a portion of the Medicaid expansion provisions, […]
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