http://www.kushnerco.com News and analysis of current and future employee benefit trends and legislation. Employee Benefits Saturday Sunday 1982-2009 Kushner & Company en-us http://www.kushnerco.com/images/logo.gif http://www.kushnerco.com http://www.kushnerco.com/article.php?fileName=DOLContribSafeHarbor Effective January 14, 2010, the Department of Labor has finalized its rules regarding a number of issues around the timing of employee contributions to small employer plans (both retirement and welfare). With the new Final Regulations, in order to meet the optional safe harbor, employee contributions and plan loan repayments must be made to the plan by no later than the seventh (7th) business day following the time the employee could have otherwise received cash. http://www.kushnerco.com/article.php?fileName=DOLContribSafeHarbor http://www.kushnerco.com/article.php?fileName=COBRASubsidyExtended Late Saturday night (December 19th), the Senate passed the Department of Defense Appropriations Act, which contained in Section 1010 an extension of the COBRA subsidy first introduced in 2009’s ARRA stimulus bill. Thus, Congress has passed and the President has now signed, the extension of the COBRA subsidy. http://www.kushnerco.com/article.php?fileName=COBRASubsidyExtended http://www.kushnerco.com/article.php?fileName=AnnualNotices2009 As benefit and open enrollment planning begins for many organizations each fall, it should be remembered that there are a number of annual health plan notices that must be sent to plan participants each year. Below is a list of notices to keep in mind, and ensure that they are sent as necessary http://www.kushnerco.com/article.php?fileName=AnnualNotices2009 http://www.kushnerco.com/article.php?fileName=2010Limits The 2010 HSA limits were announced in May. The remaining limits were announced by the Treasury in mid-October. http://www.kushnerco.com/article.php?fileName=2010Limits http://www.kushnerco.com/article.php?fileName=Thingstodo2010 Kushner & Company outlines new benefit law changes and things for employers to do to prepare for the 2010 plan year. http://www.kushnerco.com/article.php?fileName=Thingstodo2010 http://www.kushnerco.com/article.php?fileName=2010Limits The 2010 HSA limits were announced in May. The remaining 2010 limits are typically announced by the Treasury in mid- to late-October. http://www.kushnerco.com/article.php?fileName=2010Limits http://www.kushnerco.com/article.php?fileName=ARRAModelNotices DOL produced four model notices depending upon the type of Qualified Beneficiary. Particular attention should be paid to DOL’s instruction that all qualified beneficiaries, regardless of qualifying event, must be provided with one or more notices. http://www.kushnerco.com/article.php?fileName=ARRAModelNotices http://www.kushnerco.com/article.php?fileName=COBRA-ARRA President Obama has now signed into law the American Recovery and Reinvestment Act of 2009 (“ARRA”), effective February 17, 2009. The COBRA provisions in the Act are now finalized. And there is much for employers to do right away. http://www.kushnerco.com/article.php?fileName=COBRA-ARRA http://www.kushnerco.com/article.php?fileName=SCHIP Anyone watching or reading the news these days has seen some of the significant changes that have occurred or been proposed recently with respect to employee benefits. The most recent enacted change in benefits legislation is the new Children’s Health Insurance Program Reauthorization Act of 2009. The signing of this Act by President Obama on February 4, 2009 continues and expands the State Children’s Health Insurance Program, more commonly known as SCHIP. What is most applicable to employers is how the Act affects employer-sponsored health plans. Below, we summarize how your employer-sponsored health plans will be impacted. http://www.kushnerco.com/article.php?fileName=SCHIP http://www.kushnerco.com/article.php?fileName=MinReqDist On December 11, 2008, Congress passed the Worker, Retiree, and Employer Recovery Act of 2008. There were many provisions dealing with qualified retirement plans, including one providing many employers and their employees with relief with regard to Required Minimum Distributions for one year, 2009. http://www.kushnerco.com/article.php?fileName=MinReqDist http://www.kushnerco.com/article.php?fileName=AnnualNotices As benefit and open enrollment planning begins for many organizations each fall, it should be remembered that there are a number of annual health plan notices that must be sent to plan participants each year. Below is a list of notices to keep in mind, and ensure that they are sent as necessary. http://www.kushnerco.com/article.php?fileName=AnnualNotices http://www.kushnerco.com/article.php?fileName=2009Limits As is usual, the IRS has released their 2009 employee benefit plan limits. Here they are. http://www.kushnerco.com/article.php?fileName=2009Limits http://www.kushnerco.com/article.php?fileName=HEART%20Act$202008 On June 17, 2008, the Heroes Earnings Assistance and Relief Tax Act (HEART) was signed into law. Geared toward employees called to active duty in the U.S. military, it enacted a number of new provisions for both Flexible Spending Account programs under Section 125 as well as qualified retirement plans. http://www.kushnerco.com/article.php?fileName=HEART%20Act%202008 http://www.kushnerco.com/blog/index.php?itemid=9 In a remarkable reading of its statute, the Massachusetts Department of Revenue (DOR) has issued Directive 08-3 that will require all unincorporated business owners and partners who make either an elective deferral or receive a matching contribution in a qualified 401(k) plan to withhold state income tax. http://www.kushnerco.com/blog/index.php?itemid=9 http://www.kushnerco.com/article.php?fileName=2009%20HSA$20Limits Starting in 2007, the Tax Relief and Health Care Act of 2006 (TRHCA) requires that the IRS release the upcoming year's new HSA limits prior to June 1st. Here are the new limits. http://www.kushnerco.com/article.php?fileName=2009%20HSA$20Limit http://www.kushnerco.com/article.php?fileName=403(b)%20Compliance It had to happen. For over 40 years, the IRS had looked the other way when it came to public sector and not-for-profit 403(b) plans. Now they're getting serious. http://www.kushnerco.com/article.php?fileName=403(b)%20Compliance http://www.kushnerco.com/article.php?fileName=DOL%20Deposit%20Timeline Recognizing there was widespread noncompliance with the regulations, the DOL has now issued a new safe harbor for small employers, defined as those having 100 or fewer participants in the plan. Now, plan deposits of employee contributions will be considered timely if made within seven (7) business days of the payroll date. http://www.kushnerco.com/article.php?fileName=DOL%20Deposit%20Timeline http://www.kushnerco.com/article.php?fileName=LaRue On February 20, 2008, the U.S. Supreme Court overturned a decision by the 4th Circuit Court of Appeals, allowing a 401(k) plan participant to sue for investment losses arising out of the employer’s failure to heed investment directions in acting as a plan fiduciary. http://www.kushnerco.com/article.php?fileName=LaRue http://www.kushnerco.com/article.php?fileName=IndividualPolicies Many employers today are looking for every available advantage to maintain health coverage for their employees at a reasonable cost to both the employee and the employer. One tool that employers have been utilizing is a Health Reimbursement Account (HRA). http://www.kushnerco.com/article.php?fileName=IndividualPolicies http://www.kushnerco.com/article.php?fileName=New%20125%20Prop%20Regs The Internal Revenue Service has issued new Proposed Regulations that would govern the design and operation of cafeteria plans established under Internal Revenue Code Section 125. The Proposed Regulations, which were published in the Federal Register on August 6, 2007, replace a series of proposed and temporary Section 125 regulations dating as far back as 1984, and incorporate numerous other IRS notices and rulings. http://www.kushnerco.com/article.php?fileName=New%20125%20Prop%20Regs http://www.kushnerco.com/blog/index.php?itemid=8 Employees spend more time thinking about a shoe purchase than they do making a benefit plan choice. http://www.kushnerco.com/blog/index.php?itemid=8 http://www.kushnerco.com/article.php?fileName=2008%20HSA%20Limits Starting in 2007, the Tax Relief and Health Care Act of 2006 (TRHCA) requires that the IRS release the upcoming year's new HSA limits prior to June 1st. Here are the new limits. http://www.kushnerco.com/article.php?fileName=2008%20HSA%20Limits http://www.kushnerco.com/article.php?fileName=2008Limits Here are the new qualified retirement plan, HSA, Social Security, Medicare and other benefit limits for 2008. http://www.kushnerco.com/article.php?fileName=2008Limits http://www.kushnerco.com/blog/index.php?itemid=7 In a much anticipated move, the US Department of Labor is expected to issue a Proposed Regulation sometime this Spring on qualified retirement plans (including 401(k) plans) requiring investment and service providers to disclose information concerning direct and indirect compensation, fees and other financial arrangements. http://www.kushnerco.com/blog/index.php?itemid=7 http://www.kushnerco.com/article.php?fileName=debitCards2 On December 14, 2006, the IRS issued additional guidance (Notice 2007-2) related to the use of debit cards for health FSAs and HRAs at non-health care merchants. Currently, debit cards may be used at merchant category codes (MCCs) “…limited to physicians, pharmacies, dentists, vision care offices, hospitals, and other medical care providers.” Common practice has held that eligible medical expenses purchased at some non-health care merchants (such as Wal-Mart, or grocery stores with pharmacies) may be paid by using a participant’s debit card with proper substantiation after the purchase. The IRS was very aware of this practice and has modified their ruling to provide transition relief for implementation of the new rules. http://www.kushnerco.com/article.php?fileName=debitCards2 http://www.kushnerco.com/article.php?fileName=HSA2007 The 109th Congress went out with a bang early on Saturday morning, December 9th (5:00am exactly), when it passed new HSA provisions effective January 1, 2007. While most of the changes are good news for employers sponsoring or considering HSAs and other forms of Consumer-Directed Health Plans (CDHP) and for their employees, there are some items that will require close scrutiny and action. http://www.kushnerco.com/article.php?fileName=HSA2007 http://www.kushnerco.com/article.php?fileName=QDIA The Pension Protection Act of 2006 (PPA) provides that a participant who receives a notice that (1) explains his or her right to designate how contributions are invested and (2) describes the default investment into which contributions will be invested in the absence of his or her election, will be considered to have exercised control over the default investment. This provision was designed to assist plans with automatic enrollment and participant investment direction provisions. The Department of Labor was instructed to create safe-harbor criteria for default plan investments for participants who fail to make investment selections and has issued a proposed regulation for this purpose. The new regulation would apply for plan years beginning on or after January 31, 2006. If the default investment meets the DOL criteria to constitute a Qualified Default Investment Alternative (QDIA), the plan fiduciary will not be liable for any loss that occurs as a result of such investment. Of course, a number of requirements must be met in order to utilize this new QDIA safe harbor. http://www.kushnerco.com/article.php?fileName=QDIA http://www.kushnerco.com/blog/index.php?itemid=6 Yet another good article on the need for plan sponsors to insist on full fee disclosure as part of performing their fiduciary obligations under qualified retirement plans. http://www.kushnerco.com/blog/index.php?itemid=6