DOL posts transcripts from proposed definition of fiduciary public hearings

The Department of Labor's Employee Benefits Security Administration has updated its website with the following:
Public Hearing Transcript regarding the Proposed Regulation on the Definition of Fiduciary:

• March 1, 2011 Transcript, available at http://www.dol.gov/ebsa/pdf/1210-AB32-HearingTranscript1.pdf
• March 2, 2011 Transcript, available at http://www.dol.gov/ebsa/pdf/1210-AB32-HearingTranscript2.pdf

Be forewarned, there are over 800 pages!

DOL changes DFVC filing address

Effective March 29, 2011, the address for the Delinquent Filer Voluntary Compliance Program (DFVCP) lockbox will change to: DFVC DOL, PO Box 71361, Philadelphia, PA 19176-1361. There is no overnight delivery address.

Extension of Non-enforcement period relating to Internal Claims and Appeals

Section 2719 of the PHS Act sets forth standards for plans and issuers that are not grandfathered health plans regarding internal claims and appeals and external review. The government published interim final regulations implementing PHS Act section 2719 on July 23, 2010, at 75 FR 43330 (the 2010 interim final regulations).

On September 20, 2010, the Department of Labor issued Technical Release 2010-02 (T.R. 2010-02), which set forth an enforcement grace period for compliance with certain new provisions with respect to internal claims and appeals until July 1, 2011. Based on a review of the comments received on the 2010 interim final regulations and other feedback from interested stakeholders, the government has issued Technical Release 2011-01, which modifies and extends the enforcement grace period set forth in T.R. 2010-02.

Automatic Enrollment in Large Employer Health Plans

Recall that Health Care Reform contained a provision requiring automatic enrollment for large employers with more than 200 full-time employees.  There were varying interpretations of when this provision would take effect

EBSA recently announced that it is hosting a public forum  on April 8, 2011 to exchange information and views on issues relating to the automatic enrollment provision contained in the Affordable Care Act. Three panels will be formed addressing the definition of full-time employee, the selection of the plan in which employees would be automatically enrolled and the notice and opportunity to opt out.

You must register by March 25, 2011 if you want to participate either in person or by phone.


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CLASS Act

Health Care Reform introduced CLASS (Community Living Assistance Services and Supports), a new voluntary, federally administered insurance program providing long term care benefits. There hasn't been much guidance until recently.  FAQs can be found at the Administration on Aging website.

Those who enroll and meet the benefit eligibility requirements will receive benefits to purchase long-term services and supports such as (but not limited to) personal assistance, homemaker services, specialized transportation and assistive technology to help them address their care needs.

No real details available yet, but by October 1, 2012, the Secretary of Health and Human Services will designate a benefit plan, after taking into consideration the recommendations of the CLASS Independence Advisory Council. The CLASS Act requires that the benefit plan include a cash benefit averaging at least $50 per day, not subject to any lifetime limit.

Replacement of Schedule SSA with Form 8955-SSA

In Announcement 2011-21, the IRS announced that Form 8955-SSA, a stand alone form to be filed with the IRS, is the successor to the Schedule SSA (Form 5500). Form 8955-SSA is used to report terminated participants with deferred vested benefits.

For 2009 and 2010 plan years, the Form 8955-SSA is due the later of due date for filing the 2010 Form 5500 or August 1, 2011. 

Form 8955-SSA is expected to be available shortly. The IRS has also developed a voluntary electronic filing system for filing the Form 8955-SSA which will be ready to accept filings when the form becomes available.

Extensions can be obtained by filing Form 5558, Application for Extension of Time To File Certain Employee Plan Returns.  The IRS is revising Form 5558 and expects it to be available soon.