The U.S. Department of Labor today announced publication of a final rule that expands the ability of private sector employers to communicate retirement plan information online or by email. The rule allows employers to deliver disclosures to plan participants primarily electronically, which will reduce printing, mailing, and related plan costs by an estimated $3.2 billion over the next decade. The rule will also make disclosures more readily accessible and useful for participants, but preserve the rights of those who prefer paper disclosures.
This letter follows up on our March 26, 2020, and April 20, 2020, letters requesting the U.S. Treasury Department and Internal Revenue Service (IRS) to provide relief and guidance pursuant to their statutory authority that preceded the enactment of the CARES Act. Since that time, Treasury and IRS have responded to many of those requests, including an extension of certain retirement-related deadlines through IRS Notice 2020-23, specific extensions of the plan restatement deadlines that apply to 403(b) plans and pre-approved defined benefit plans, and FAQs on the CARES Act posted on the IRS website. The Council greatly appreciates all of this relief and guidance, especially in light of the difficult circumstances under which it was developed.
Long-awaited final regulations have now been released by the U.S. Department of Labor's (DOL) Employee Benefits Security Administration (EBSA), expanding electronic disclosure for retirement plans. A fact sheet and news release are also available.
The undersigned organizations, representing many of the nation's leading private and public sector employers, write to offer our recommendations to ensure our employees, their families, and everyone in our country, is able to access high quality, affordable health care during the COVID-19 pandemic and after the pandemic ends.
Democratic lawmakers in the U.S. House of Representatives opened negotiations over the next phase of coronavirus relief legislation on May 12 by releasing the Health and Economic Recovery Omnibus Emergency Solutions (HEROES) Act (H.R. 6800).
We urge Congress to include the funding reforms from the House version of the CARES Act, which would greatly enhance American companies' ability to invest in their employees and their businesses in this critical time.
In a May 1 letter to the White House Office of Management and Budget (OMB), the Council and 14 other business and trade associations called on the Administration to "expeditiously finalize" regulations expanding electronic disclosure for retirement plans.
In a series of documents released on April 28, the U.S. Department of Labor (DOL) Employee Benefits Security Administration (EBSA), along with other agencies, announced timing extensions to a host of deadlines for plans and participants that apply during the coronavirus/COVID-19 outbreak period.
DOL/Treasury Notification of Relief Providing Extension of Certain Timeframes for Employee Benefit Plans, Participants and Beneficiaries Affected by COVID-19 Outbreak
The American Benefits Council has completed the first study of the effects of the current health and economic crises on the defined benefit plan system, with sobering results. "Among the many devastating effects of the ongoing pandemic is the profound harm inflicted on employee pensions," said Lynn Dudley, senior vice president, global retirement and compensation policy. "Without swift intervention by Congress, this damage could pose a serious impediment to our economic recovery."
We are writing to highlight an issue of increasing importance to families across the country. The regulatory rule requiring spousal consent to be witnessed in the physical presence of a plan representative or notary is clearly not suited to the current environment where requiring such physical presence can jeopardize the health of Americans across the country. In fact, as discussed further below, for safety reasons, the Federal Thrift Savings Plan (TSP) has just waived the requirement that spousal consent be notarized at all. Private-sector families deserve safety protections just like federal workers. Accordingly, we ask you to consider providing for private-sector families' protections, as the TSP has done for federal workers.
We are writing to highlight an issue of increasing importance to families across the country. There is an acute need to update a rule requiring spousal consent to certain pension plan distributions to be witnessed in the physical presence of a plan representative or notary; such a physical presence requirement is directly contrary to the critical health needs of the country. In fact, as discussed further below, for safety reasons, the Federal Thrift Savings Plan has just waived the requirement that spousal consent be notarized at all. Private-sector families deserve safety protections just like federal workers.
The American Benefits Council will hold a 90-minute Benefits Briefing webinar on Friday, April 17, at 2 p.m. Eastern Time, to discuss the top questions and issues that have arisen with respect to health plans and paid leave programs in light of the coronavirus pandemic, as well as subsequent relief measures and regulatory guidance.
The American Benefits Council will hold a 90-minute Benefits Briefing webinar on Friday, April 17, at 2 p.m. Eastern Time, to discuss the top questions and issues that have arisen with respect to health plans and paid leave programs in light of the coronavirus pandemic, as well as subsequent relief measures and regulatory guidance.
Katy Johnson, senior counsel, health policy, and Ilyse Schuman, senior vice president, health policy, will moderate the webinar, featuring guest speakers Seth Perretta, Lisa Campbell and Katie Bjornstad Amin, principals with Groom Law Group, Chartered.
