Subscribe Today

Notice Requirements under ACA- Effect Date Postponed

Phyllis C. Borzi EBSA1

Notice Requirements under ACA- Effect Date Postponed

by Editorial Staff

Jan 28 ,2013 1:15 am

Employer Compliance with the Notice Requirements of ACA- Effect Date PostponedSection 18B of the Fair Labor Standards Act FLSA, as added by section 1512 of the Affordable Care Act, generally provides that, in accordance with regulations promulgated by the Secretary of Labor, an applicable employer must provide each employee at the time of hiring or with respect to current employees, not later than March 1, 2013, a written notice:

  1. Informing the employee of the existence of Exchanges including a description of the services provided by the Exchanges, and the manner in which the employee may contact Exchanges to request assistance;
  2. If the employer plan’s share of the total allowed costs of benefits provided under the plan is less than 60 percent of such costs, that the employee may be eligible for a premium tax credit under section 36B of the Internal Revenue Code if the employee purchases a qualified health plan through an Exchange; and
  3. If the employee purchases a qualified health plan through an Exchange, the employee may lose the employer contribution if any to any health benefits plan offered by the employer and that all or a portion of such contribution may be excludable from income for Federal income tax purposes.

When do employers have to comply with the new notice requirements in section 18B of the FLSA?

Section 18B of the FLSA provides that employer compliance with the notice requirements of that section must be carried out “in accordance with regulations promulgated by the Secretary of Labor.” Accordingly, it is the view of the Department of Labor that, until such regulations are issued and become applicable, employers are not required to comply with FLSA section 18B.

The Department of Labor has concluded that the notice requirement under FLSA section 18B will not take effect on March 1, 2013 for several reasons. First, this notice should be coordinated with HHS’s educational efforts and Internal Revenue Service IRS guidance on minimum value. Second, we are committed to a smooth implementation process including providing employers with sufficient time to comply and selecting an applicability date that ensures that employees receive the information at a meaningful time. The Department of Labor expects that the timing for distribution of notices will be the late summer or fall of 2013, which will coordinate with the open enrollment period for Exchanges.

The Department of Labor is considering providing model, generic language that could be used to satisfy the notice requirement. As a compliance alternative, the Department of Labor is also considering allowing employers to satisfy the notice requirement by providing employees with information using the employer coverage template as discussed in the preamble to the Proposed Rule on Medicaid, Children’s Health Insurance Programs, and Exchanges:

Essential Health Benefits in Alternative Benefit Plans, Eligibility Notices, Fair Hearing and Appeal Processes for Medicaid and Exchange Eligibility Appeals and Other Provisions Related to Eligibility and Enrollment for Exchanges, Medicaid and CHIP, and Medicaid Premiums and Cost Sharing 78 FR 4594, at 4641, which will be available for download at the Exchange web site as part of the streamlined application that will be used by the Exchange, Medicaid, and CHIP.

Future guidance on complying with the notice requirement under FLSA section 18B is expected to provide flexibility and adequate time to comply.

Array ( [0] => 38 ) The U.S. Department of Labor’s Employee Benefits Security Administration has approved the process for JP Morgan Chase Bank NA and ADP Inc. to terminate and wind up approximately 180 defined contribution pension plans abandoned due to corporate crises or neglect. This action, conducted through EBSA’s abandoned plan program, will give plan participants control over the fate of their retirement savings. ... Beginning on October 1, 2013, small employers will be able to choose from a range of coverage options through the Small Business Health Options Program, SHOP, and select the best plan for their employees’ coverage. The SHOP will offer a single point of entry for employers and their employees to apply for coverage, and if eligible, the employer may qualify ... The implementation of the health care law continued to move forward with the U.S. Departments of Health and Human Services, Labor and the Treasury, issuing final rules on employment-based wellness programs. Specifically, these final regulations increase the maximum permissible reward under a health-contingent wellness program offered in connection with a group health plan from 20 percent to 30 percent of ... The nationwide take down by Medicare Fraud Strike Force operations in eight cities has resulted in charges against 89 individuals, including doctors, nurses and other licensed medical professionals, for their alleged participation in Medicare fraud schemes involving approximately $223 million in false billings. Attorney General Holder and Secretary Sebelius in a joint statement, with Acting Assistant Attorney General Mythili Raman of the ... There are two types of pension plans — defined benefit plans and defined contribution plans. Defined benefit plans provide a specific benefit at retirement for each eligible employee, while defined contribution plans specify the amount of contributions to be made by the employer toward an employee’s retirement account. In a defined contribution plan, the actual amount of retirement benefits provided ... Even small investments become larger investments, if you leave them there over time, and let the interest compound and grow. How It Works The money you save in a savings account, in your 401(k) plan, mutual funds or other account, earns interest or investment earnings. When you leave the money there, over time you also earn interest on your interest, ... If your employer does not offer a retirement plan, you still have a number of options. First, you can encourage your employer to offer a plan. Many employers are not aware of the benefits gained by offering a plan and the different options that are available. Second, if you are job hunting, you may find a position with an employer ... In its third annual report on self-insured employee health benefit plans, established by the Affordable Care Act, the U.S. Department of Labor report estimates that nearly 20,000 health plans filing a Form 5500 for 2010 were self-insured and approximately 4,000 were mixed-insured. These plans covered 30 million and 26 million participants respectively. However, because many self-insured health plans do not ... The federal government will pay 100 percent of the cost of certain newly eligible adult Medicaid beneficiaries. The announcement was made by the Health and Human Services HHS Secretary Kathleen, she said the new regulation will be effective January 1, 2014, and stakeholders are invited to comment on the final rule before the effect date. These payments will be in ... The Affordable Care Act makes Medicare prescription drug coverage (Part D) more affordable by gradually closing the gap in coverage where beneficiaries must pay the full cost of their prescriptions out of pocket. This gap is known as the Donut Hole. Commemorating  the third anniversary of the Affordable Care Act, Health and Human Services report reveals that more than 6.3 ... Secretary Sebelius released the preventive services report as HHS celebrates the Affordable Care Act’s third anniversary this week. The law is keeping down costs and providing more value for consumers and taxpayers through new consumer protections, holding insurance companies accountable, building a smarter health care system, and providing seniors with vital savings on their prescription drugs. Secretary Sebelius said,” The law ... BeneTrac, a Paychex company and provider of powerful, web-based electronic enrollment and employee benefits administration software, is announcing its technology further supports healthcare reform compliance, with enhanced capabilities to satisfy recent W-2 reporting requirements to report the cost of employer-provided health coverage on employee W-2 forms. The latest software enhancements make it easy to report the aggregate cost of “applicable ... The U S Department of Labor’s Employee Benefits and Security Administration EBSA recognize that expatriate health plans may face special challenges in complying with certain provisions of the Affordable Care Act.  In particular, challenges in reconciling and coordinating the multiple regulatory regimes that apply to expatriate health plans might make it impossible or impracticable to comply with all the relevant ... Target date retirement funds, or TDFs, can be attractive investment options for employees who do not want to actively manage their retirement savings.  TDFs automatically rebalance to become more conservative as an employee gets closer to retirement.  The “target date” refers to a target retirement date, and often is part of the name of the fund.  For example, you might ... Tough New Rules and Sentences for Criminals: An unprecedented collaboration between HHS and the DOJ on the joint HEAT Strike Force has charged more than 1,400 defendants who collectively have falsely billed the Medicare program more than $4.8 billion since 2007. In 2012, the Department of Justice opened 1,311 new criminal health care fraud investigations involving 2,148 defendants. And with the ... The U. S. Department of Labor has reached a settlement with Austin Capital Management, which indirectly invested in Bernard L. Madoff’s Ponzi scheme, which will provide payment of more than $34 million to compensate employee benefit plans for losses suffered. The agreement follows an earlier settlement in which Austin Capital’s parent company, KeyCorp, paid more than $9 million. Recoveries from ... Final rules under the Affordable Care Act to protect workers and employers whose health benefits are provided through Multiple Employer Welfare Arrangements have been issued by the U.S. Department of Labor’s Employee Benefits Security Administration. The final rules will increase the department’s enforcement authority to protect participants in MEWAs and call for such plans to adhere to enhanced filing requirements. ... A final rule that implements five key consumer protections under the Affordable Care Act, and makes the health insurance market work better for individuals, families, and small businesses has been issued by the U.S. Department of Health and Human Services . Under these reforms, all individuals and employers have the right to purchase health insurance coverage regardless of health status. ... In a time when health care costs are at an all-time high, it’s essential to maximize employee benefit investments. United Benefit Advisors® UBA, one of the nation’s largest employee benefit advisory organizations, in conjunction with The Principal Financial Group, is hosting an HR webinar that will explore top-rated benefit plans, called Making the Right Investment in Benefits: How the Winning Companies Do ... The U.S. Department of Labor’s Employee Benefits Security Administration has announced technical updates to its Delinquent Filer Voluntary Compliance Program. The Employee Retirement Income Security Act requires most private-sector plans to file an annual return/report of employee benefit plan. This is usually the Form 5500 or, for certain small plans, Form 5500-SF. Plan administrators who fail or refuse to comply ... What are the Employer Shared Responsibility provisions? Starting in 2014, employers employing at least a certain number of employees generally 50 full-time employees and full-time equivalents will be subject to the Employer Shared Responsibility provisions under section 4980H of the Internal Revenue Code added by the Affordable Care Act. Under these provisions, if these employers do not offer affordable health ... Section 18B of the Fair Labor Standards Act FLSA, as added by section 1512 of the Affordable Care Act, generally provides that, in accordance with regulations promulgated by the Secretary of Labor, an applicable employer must provide each employee at the time of hiring or with respect to current employees, not later than March 1, 2013, a written notice: Informing ... On March 23, 2010, President Obama signed the Affordable Care Act. The law puts in place comprehensive health insurance reforms that will roll out over four years and beyond. The Health Insurance Marketplace: Individuals and small businesses can buy affordable and qualified health benefit plans in this new transparent and competitive insurance marketplace. Open enrollment begins October 1, 2013. Coming in 2014: Tax Credits ... The Department of Labor’s Employee Benefits Security Administration EBSA administers the Employee Retirement Income Security Act of 1974 ERISA, which governs retirement plans including profit sharing and 401(k) plans and welfare plans including health, disability, and life insurance plans. ERISA also includes the health coverage continuation and accessibility provisions of the Consolidated Omnibus Budget Reconciliation Act COBRA and the Health ... Increasingly employees are asked to make voluntary or mandatory contributions to pension and other benefit plans. This is particularly true for 401(k) savings plans. These plans allow you to deduct from your paycheck a portion of pretax income every year, invest it and pay no taxes on those contributions until the money is withdrawn at retirement. An anti-fraud campaign by ... The yearly maximum guaranteed benefit for a 65-year-old retiree has increased to almost $57,500 from $56,000, the Pension Benefit Guaranty Corporation made this known in Washington. Most retirees who get their pension from PBGC, almost 85 percent receive the full amount of their promised benefit. In some cases, retirees can receive more than the PBGC maximum guarantee. The PBGC maximum guarantee ... The Health and Human Services Secretary Kathleen Sebelius has announced series of steps being taken to ensure all American by October Next Year have access to Health Insurance Exchanges and  make it illegal for insurance companies to discriminate against people with pre-existing conditions. Making this known in a press teleconference, Kathleen Sebelius said, “Over the past two and a half ... In a bid to promote consistency across plans, and protect consumers by ensuring that plans cover a core package of items and services, the Department of Health and Human Services HHS has proposed regulation that helps consumers shop for and compare non-grandfathered private health insurance options in the individual and small group markets. The Health and Human Services Secretary Kathleen ... The Internal Revenue Service has announced that 401(k)’s and similar employer-sponsored retirement plans can make loans and hardship distributions to victims of Hurricane Sandy and members of their families, as part of the administration’s efforts to bring all available resources to bear to support state and local partners impacted by Hurricane Sandy. The IRS is also relaxing procedural and administrative ... As the diabetes epidemic continues in the United States – with nearly 26 million children and adults afflicted with the disease – the fight to reverse the trend is more important than ever before. Statistics from the American Diabetes Association are staggering. In 2010 alone, 1.9 million new cases of the disease were diagnosed in people 20 years and older. Adults with ... Offering a retirement plan can be one of the most challenging, yet rewarding, decisions an employer can make. The employees participating in the plan, their beneficiaries, and the employer benefit when a retirement plan is in place. Administering a plan and managing its assets, however, require certain actions and involve specific responsibilities. To meet their responsibilities as plan sponsors, employers ... Benefit Express Services, LLC, a leader in providing benefits administration for large, medium and small organizations, announced the addition of AccuSource, Inc. to their Trusted Partner Ecosystem. “We are excited to announce AccuSource as our trusted partner in background checks and employment screening. As our dependent verification partner for the last two years, we are confident that AccuSource will provide ... Indeed mistakes in benefit plans can and do happen. However, these Federal agencies, Internal Revenue Service and U.S. Department of Labor, have programs ready to help organizations. Internal Revenue Service Tax Exempt & Government Entities Division, Employee Plans The IRS system of retirement plan correction programs,- the Employee Plans Compliance Resolution System EPCRS, helps plan sponsors of various types of ... Two new management staff for Pension Benefit Guaranty Corporation, benefits payments and quality management departments has been announced. Making this known in Washington, PBGC Director Josh Gotbaum said, “PBGC is one of the best benefits organizations in government, and our new recruits are committed to keeping it that way. We’re fortunate to be able to attract managers of such high ... CheckPoint HR, the leading provider of HR Spend Optimization for small to mid-sized businesses, has announced a strategic relationship to become a Third Party Administrator TPA with Assurant Employee Benefits, one of the fastest growing providers of voluntary benefits for small to mid-size businesses. This is an important partnership for CheckPoint HR in its development of providing employers an online benefits ... The Employee Retirement Income Security Act ERISA requires plan fiduciaries, when selecting and monitoring service providers and plan investments, to act prudently and solely in the interest of the plan’s participants and beneficiaries. Responsible plan fiduciaries also must ensure that arrangements with their service providers are “reasonable” and that only “reasonable” compensation is paid for services. Fundamental to the ability ... Summary of Qualifying Events, Qualified Beneficiaries, and Maximum Periods of Continuation Coverage The following chart shows the specific qualifying events, the qualified beneficiaries who are entitled to elect continuation coverage, and the maximum period of continuation coverage that must be offered, based on the type of qualifying event. Note that an event is a qualifying event only if it would ... The U.S. Department of Labor has filed a lawsuit against GreatBanc Trust Co. and Sierra Aluminum Co. in the U.S. District Court for the Central District of California, based on an investigation by the department’s Employee Benefits Security Administration. The suit alleges that GreatBanc violated the Employee Retirement Income Security Act by breaching its fiduciary duties to the Sierra Aluminum ... Benefits Under Continuation Coverage If you elect continuation coverage, the coverage you are given must be identical to the coverage that is currently available under the plan to similarly situated active employees and their families generally, this is the same coverage that you had immediately before the qualifying event. You will also be entitled, while receiving continuation coverage, to the ...
0 comments