Health & Welfare Plans Newsletter

January 19, 2018

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Jobs

401(k) Conversion / Installation Specialist
Professional Capital Services
in PA

Northeast Territory Sales Director
PenChecks Trust
in CT, DC, DE, MA, MD, ME, NH, NJ, NY, PA, RI

Medical Claims Processor and Benefits Specialist
Painters District Council #30 Benefits Office
in IL

Call Center Manager
Newport Group
in CA

Retirement Plan Marketing Specialist
Stifel Financial
in MO

Divisional VP, Strategic Relationship Management
John Hancock Retirement Plan Services
in MI, PA, Telecommute

Health Benefits Manager
The Segal Group
in CA

Benefits Manager
Carpenters Southwest Administrative Corporation
in CA

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[Guidance Overview]

New Sick Leave Law Affects All Maryland Employers
"An employer must keep relevant records for at least three years, and there is a rebuttable presumption that an employer has violated the law if it fails to do so. An employee may file a complaint with the labor commissioner and may then bring a civil action for treble damages, punitive damages, and attorney's fees. The act will impact 100,000 businesses employing more than 790,000 employees and employers must immediately prepare to comply with its requirements."
Vorys

[Advert.]

Employer Health Care Cost & Quality Congress | Washington DC

Sponsored by World Congress

4/29-5/2/2018 in Washington DC. This event brings together Employers, Brokers, and TPAs. Qualified HR & Benefits Professionals may attend as our guest ? See website for details/restrictions & to apply.


[Guidance Overview]

Maryland's Healthy Working Families Act Requires Employers in the State to Provide Sick/safe Leave
"Covered employers must notify employees of their rights under the Act ... [E]mployees must be given a detailed statement each pay period explaining the status of the accrued and used sick/safe leave. Further, employers are required to maintain the records of individual employee leave accrual and usage for three years, and the records are subject to government inspection."
FordHarrison

[Guidance Overview]

Disaster Area Tax Relief Does Not Extend to ACA Reporting
"The IRS has announced tax deadline extensions to individuals and businesses affected by the Thomas fire and subsequent flooding, mud and debris flow in Santa Barbara and Ventura counties.... The relief does not extend to ... [d]eadlines applicable to ACA Forms 1094-C (Transmittal Form) and 1095-C (Employee Statements) for 2017, required to be filed and furnished by Applicable Large Employers. Those deadlines remain as follows: File Form 1095-Cs w/IRS by February 28, 2018 (paper); April 2, 2018 (e-file); Furnish Form 1095-Cs to Employees by March 2, 2018."
E is for ERISA

Employers Running Out of Time in Dealing with the Cadillac Tax
"[T]he Cadillac Tax is still alive and scheduled to take effect January 1, 2020.... Self-funded employers hoping to make material changes to their plans effective January 1, 2019 ... have already begun that process and intend to make decisions by midyear in order to have time to implement changes ... Employers with collective bargaining agreements that will not expire until later in 2018 or 2019, will face challenges in negotiating and implementing changes in their health plans by January 1, 2020 to keep their plans' gross costs from triggering the Cadillac Tax."
Findley Davies | BPS&M

Questions Employees Are Still Asking About ACA 1095s
"[1] What is this form I'm receiving? ... [2] Who is sending it to me, when, and how? ... [3] Why are you sending it to me? ... [4] I thought the [ACA] requirement to have health insurance was repealed. Do I still need this form? ... [5] What am I supposed to do with this form? ... [6] What if I get more than one 1095 form? ... [7] What if I did not get a Form 1095-B or a 1095-C? ... [8] I have more questions -- Who do I contact?"
International Foundation of Employee Benefit Plans [IFEBP]

[Advert.]

Defined Contribution Health Plan Update

Sponsored by Lorman and BenefitsLink

February 1 webinar. What is the future of a defined contribution health benefit plan? . BenefitsLink discount .


The Promise of Telehealth
"As with any emerging technology, telehealth presents challenges. These include reimbursement limitations, statutory and regulatory barriers, investment costs, broadband access considerations, and privacy and security issues ... Patients are increasingly willing to pay to receive health care at their own convenience and, more and more, payors are paying attention as providers begin to tap the potential."
Hodgson Russ LLP

CMS Posts New Info on Role of Agents and Brokers in 2018 Open Enrollment
"On January 18, 2018, HHS posted a summary of some additional plan year 2018 open enrollment metrics ... The slides also included key areas for ongoing agent/broker assistance (such as paying premiums to effectuate coverage, data matching issues, and special enrollment period changes), as well as other marketplace updates."
Health Affairs

[Opinion]

CVS-Aetna, a Few Weeks Later
"[CVS is] reserving cash for strategic acquisitions and building out their MinuteClinics.... CVS employees are required to use these clinics for their mandatory annual physicals, obviating the need for other more expensive primary care. Rumors are even circulating that following jettisoning tobacco, CVS is strongly weighing exiting the alcohol and grocery space and throwing all their resources into the health and wellness space."
Frenkel Benefits

Benefits in General

[Guidance Overview]

DOL Changes Disability Claims and Appeals Regs
"If your self-insured STD benefit is, in fact, subject to ERISA, you'll need to amend your plan documents.... If your self-insured STD benefit is, in fact, subject to ERISA and you are making disability determinations in-house, consider looking for an advise-to-pay vendor.... Review the definition of 'disability' or 'disabled' in your other ERISA-covered benefit plans (e.g., profit-sharing, 401(k), defined benefit, non-qualified deferred comp, top-hat, etc.) and consider whether and to what extent you should change that definition."
ERISAfire

Supreme Court Again Denies Review of ERISA Forum Selection Clauses
"This is the third time in as many years that the high court has denied review of this issue.... The Solicitor General sided with the [DOL], which has filed amicus briefs in support of the participants in each of the appellate cases. However, the Solicitor General recommended that the issue percolate more in the appellate courts. Since then, the Eighth and Seventh Circuits have issued orders that align with the Sixth Circuit. And the Supreme Court has denied review of each of the decisions."
Greensfelder

When It Comes to Funding Pension or OPEB Liabilities, Not All Section 115 Trusts Are Created Equal
"With the advent of side-fund arrangements, we now have two types of 115 trusts: those designed to fund and pay pension and OPEB benefits directly and those designed to set aside monies from the general assets of the employer for future use toward pension or OPEB obligations. Much of the current confusion regarding whether 115 trust assets can be used to offset pension or OPEB liabilities for GASB purposes stems from proposed guidance issued by the GASB board in early 2017."
Best Best & Krieger LLP

HSA 'Chicken' or 401(k) 'Nest Egg' -- Which Comes First?
"The important question to ask may be how to prioritize for those who have limited ability to save.... The answer depends, in part, on a number of factors, including but not limited to: geographic location, the match (if any) in the 401k plan, whether the 401k plan offers a robust loan feature, whether there is an employer contribution to the HSA and if so, whether it is in the form of a match or if it meets the comparability rules."
Plan Sponsor Council of America [PSCA]

Executive Compensationand Nonqualified Plans

[Guidance Overview]

Tax-Exempt Organizations Face New 21% Excise Tax on Compensation in Excess of $1 Million
"When setting compensation or agreeing to provide severance payments, Tax-Exempt Organizations ... may offer lower compensation in recognition of the tax, cap compensation to avoid the tax, or maintain the right to modify or reduce compensation to the extent needed to avoid the tax.... Tax-Exempt Organizations may require the departing employee to cover the excise tax amount out of his or her parachute payment."
Schulte Roth & Zabel LLP

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BenefitsLink Health & Welfare Plans Newsletter, ISSN no. 1536-9595. Copyright 2018 BenefitsLink.com, Inc. All materials contained in this newsletter are protected by United States copyright law and may not be reproduced, distributed, transmitted, displayed, published or broadcast without the prior written permission of BenefitsLink.com, Inc., or in the case of third party materials, the owner of those materials. You may not alter or remove any trademark, copyright or other notices from copies of the content.

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