Benefits Blast

New transparency requirements under the Affordable Care Act and the Consolidated Appropriations Act have ushered in a new era of fee and pricing transparency with respect to the Employee Retirement Income Security Act (ERISA) group health plans.

In January, the 2024 federal poverty level (FPL) was announced as $15,060. 

Due to increased physical and cybersecurity concerns, executives are increasingly provided travel on the company aircraft for both business and personal purposes. However, any non-business travel invokes Form W-2 income inclusion using the Standard Industry Fare Level (SIFL) rates published by the Department of Transportation twice per year, effective for a six-month period.

Effective January 15, 2024, the United States Department of Labor increased its ERISA health and welfare civil penalties for non-compliance

On January 10, 2024, the Department of Labor (DOL) published a final rule (the Final Rule) regarding independent contractors under the Fair Labor Standards Act (FLSA). The Final Rule, which is effective March 11, 2024, replaces the 2021 rule and applies a “six-factor” test that does not give a predetermined weight to any of the economic reality factors, but rather looks at the individual’s activity as a whole in determining whether they are an independent contractor.

On October 31, 2023, the United States Department of Labor’s Employee Benefits Security Administration (the Department) released its most recent proposed amendment to the guidance addressing when a person would be considered a fiduciary under Title I and Title II of the Employee Retirement Income Security Act of 1974 (ERISA) if it provides investment advice or makes an investment recommendation to a retirement investor.

The IRS recently released Notice 2023-75 to announce cost-of-living adjustments to the indexed dollar limits applicable to retirement plans. Increases are more moderate than in recent years, with the limit on catch-up contributions remaining the same from 2023 to 2024. 

On August 25, 2023, the IRS issued Notice 2023-62, which effectively delays for two years the requirement that certain catch-up contributions in 401(k), 403(b), or governmental 457(b) plans be made as Roth contributions.

On June 9, 2023, the Securities and Exchange Commission (the SEC) approved the New York Stock Exchange (NYSE) and Nasdaq Stock Market (Nasdaq) listing standards related to recovery of erroneously awarded compensation, referred to as “clawbacks,” as mandated by the Dodd-Frank Wall Street Reform and Consumer Protection Act (the Dodd-Frank Act). New Section 303A.14 of the NYSE Listed Company Manual and Nasdaq Rule 5608 implement the requirements of Rule 10D-1 adopted by the SEC in November 2022 pursuant to Section 10D of the Securities Exchange Act of 1934, as amended (the Exchange Act), added by the Dodd-Frank Act in 2010.

On July 25, 2023, the Departments of Labor, Treasury, and Health and Human Services (the Departments) released a Proposed Rule under the Mental Health Parity and Addiction Equity Act (MHPAEA).

In 2019, the state of Washington created the WA Cares Fund to provide affordable long-term care coverage for employees in Washington state. Following legislation that delayed the effective date by one year and added voluntary exemptions for certain individuals, Washington state employers must now begin deducting premiums from employee wages beginning July 1, 2023.

On January 30, 2023, the White House announced its intent to extend both the COVID‑19 National Emergency and the COVID‑19 Public Health Emergency declarations to May 11, 2023, and to end both emergency declarations on that date. The Public Health Emergency was initially declared by the Department of Health and Human Services as of January 27, 2020. The Secretary of Health and Human Services has authority to renew the Public Health Emergency in increments of 90 days.

Last week, the IRS released Notice 2022-55 to announce cost-of-living adjustments to the indexed dollar limits applicable to retirement plans. For the second year in a row, the contribution and benefit limits will increase significantly. The chart below shows how the new limits compare to those of the previous two years.

The IRS recently published its annual inflation adjustment to the percentage of household income used to determine whether an employer’s offer of health care coverage under the Affordable Care Act (ACA) is considered affordable in the 2023 plan year.

The Benefits Bulletin provides timely and consistent updates on industry hot topics

The Benefits Bulletin provides timely and consistent updates on industry hot topics.

The Benefits Bulletin provides timely and consistent updates on industry hot topics.

The Benefits Bulletin provides timely and consistent updates on industry hot topics.