A Blitz of Important Notes

Here is an assortment of important information that needs to be brought to your attention:

Vaccine Programs – Should they be listed in the Plan Documents and noted in the Form 5500?

The answer all depends on how the vaccine program has been structured. From our ERISA Desk:

Plan Documents…

The Covid vaccination document and reporting approach will depend on how the benefit is set up. If the employer offers incentives to get the vaccine (such as a company discounting medical contributions for proof of full vaccination), it is going to be considered a wellness program. Wellness programs, generally speaking, can fall under ERISA and therefore, need to be noted in the Plan Documents.

Please note: President Biden recently signed orders requiring mandatory vaccines for employees of certain employers (e.g. private-sector employers with 100 or more employees) that fall under the Department of Labor’s Occupational Safety and Health Administration (OSHA) rather than ERISA or wellness programs.

When language needs to be added to the Plan Document, the ERISA Desk team tends to add an Appendix section that covers the key details and provisions of the program.

If you have questions or need your clients’ Plan Documents amended, feel free to contact Aubrey Box at the ERISA Desk: abox@wrangle5500.com.

As for the Form 5500…

If the benefit has been set up like an EAP, where there is a fee per employee paid to a vendor for the vaccine, a Schedule A may be required. However, if the benefit is more of a self-insured funding structure, then a Schedule A would not be included. The benefit code 4A would be listed and general assets would be checked.

For questions on the Form 5500 side, you can reach out to Ann McAdam at amcadam@wrangle5500.com.

We have seen various changes to ERISA language this year. Will there to be updates to the Plan Documents?

The Plan Amendments that our ERISA Desk will implement before the end of the year will be found in our next blog to be released at the end of September. Stay tuned.

Hurricane Ida – Did any states receive the Special Extension?

Natural Disaster	Business located within the Counties/Parishes Affected	The extension applies to deadlines – either an original or extended due date –	Relief wording Wrangle will list *	Source
Kentucky Storms, Tornadoes and Flooding	Caldwell, Fulton, Graves, Hopkins, Marshall, Muhlenberg, Taylor and Warren counties	On or after December 10, 2021, and before May 16, 2022 are postponed through May 16, 2022	Kentucky-Tornado Relief	https://www.irs.gov/newsroom/for-kentucky-tornado-victims-irs-extends-2021-tax-filing-deadline-other-deadlines-to-may-16
Connecticut -Hurricane Ida	Fairfield and New London Counties including the Mashantucket Pequot Tribal Nation and Mohegan Tribal Nation	On or after September 1, 2021, and before February 15, 2022 are postponed through February 15, 2022	Connecticut -Hurricane Ida Relief	https://www.irs.gov/newsroom/hurricane-ida-tax-relief-extended-to-february-15-for-part-or-all-of-six-qualifying-states
Louisiana -Hurricane Ida	All 64 parishes in the state of Louisiana	On or after August 26, 2021, and before February 15, 2022 are postponed through February 15, 2022	Louisiana – Hurricane Ida Relief	https://www.irs.gov/newsroom/hurricane-ida-tax-relief-extended-to-february-15-for-part-or-all-of-six-qualifying-states
New York – Hurricane Ida	NY: Bronx, Dutchess, Kings, Nassau, New York, Orange, Putnam, Queens, Richmond, Rockland, Suffolk, Sullivan, Ulster, and Westchester counties	On or after September 1, 2021, and before February 15, 2022 are postponed through February 15, 2022	NY – Hurricane Ida Relief	https://www.irs.gov/newsroom/irs-announces-tax-relief-for-new-york-victims-of-remnants-of-hurricane-ida
New Jersey- Hurricane Ida	NJ: Bergen, Essex, Gloucester, Hudson, Hunterdon, Mercer, Middlesex, Morris, Passaic, Somerset, Union and Warren  counties	On or after September 1, 2021, and before January 3, 2022 are postponed through January 3, 2022	NJ – Hurricane Ida Relief	https://www.irs.gov/newsroom/irs-announces-tax-relief-for-new-jersey-victims-of-remnants-of-hurricane-ida
Mississippi-Hurricane Ida	Mite, Claiborne, Copiah, Covington, Franklin, George, Hancock, Harrison, Jackson, Jefferson, Jefferson Davis, Lawrence, Lincoln, Pearl River, Pike, Simpson, Walthall, Wayne, and Wilkinson	On or after August 28, 2021, and before February 15, 2022 are postponed through February 15, 2022	Mississippi – Hurricane Ida Relief	https://www.irs.gov/newsroom/hurricane-ida-tax-relief-extended-to-february-15-for-part-or-all-of-six-qualifying-states
Pennsylvania- Hurricane Ida	Bucks, Chester, Delaware, Montgomery, Philadelphia and York counties,	On or after August 31, 2021, and before February 15, 2022 are postponed through February 15, 2022	Pennsylvania- Hurricane Ida Relief	https://www.irs.gov/newsroom/hurricane-ida-tax-relief-extended-to-february-15-for-part-or-all-of-six-qualifying-states
Alabama Severe Storm and Flooding	Jefferson and Shelby counties	On or after October 6, 2021, and before February 28, 2022 are postponed through February 28, 2022	Alabama Severe Storm and Flooding Relief	https://www.irs.gov/newsroom/irs-announces-tax-relief-for-alabama-victims-of-severe-storms-and-flooding
Illinois Tornado	Bond, Cass, Coles, Effingham, Fayette, Jersey, Macoupin, Madison, Montgomery, Morgan, Moultrie, Pike and Shelby	On or after December 10, 2021, and before May 16, 2022 are postponed through May 16, 2022	Illinois Tondado Relief	https://www.irs.gov/newsroom/irs-announces-tax-relief-for-illinois-victims-of-severe-storms-straight-line-winds-and-tornadoes
Tennessee Tornado	Cheatham, Decatur, Dickson, Dyer, Gibson, Lake, Obion, Stewart, and Weakley	On or after December 10, 2021, and before May 16, 2022 are postponed through May 16, 2022	Tennessee Tornado Relief	https://www.irs.gov/newsroom/for-illinois-and-tennessee-tornado-victims-irs-extends-2021-tax-filing-deadline-other-deadlines-to-may-16
Arkansas Tornadoes	Craighead, Jackson, Mississippi, Poinsett, and Woodruff  counties	On or after December 10, 2021, and before May 16, 2022 are postponed through May 16, 2022	Arkansas-Tornado Relief	https://www.irs.gov/newsroom/irs-announces-tax-relief-for-arkansas-victims-of-severe-storms-and-tornadoes

 

 

Covid-19 National Emergency – Is it still in effect?

On February 24, 2021, President Biden declared to continue that national emergency due to Covid 19, and as a result, the EBSA Disaster Relief 2021-01 continues to extend the time for Plan Sponsors to distribute the SAR until 60 days after the announcement of the end of the Covid-19 National Emergency. However, the DOL has strongly encouraged Plan Sponsors to make a good faith effort to furnish the documents as soon as administratively possible.

An ERISA Plan Name – Does It Make an Impact on the DOL?

The DOL uses the Form 5500 data to study and track for trends. To track on health benefits, we would have expected the DOL to consider if the health benefit codes (medical – 4A, dental – 4D or vision – 4E) are listed on page two of the 5500. However, the DOL does not look at these to screen out which reports to track.

Instead, the Plan Name is used: if the Plan Name does not specify an attribute in health, the report is skipped.

For the purposes of the GHP Research File, plans that report health benefit features are determined not to actually provide health benefits if all of the following criteria are met:

• Plan name does not contain “HEALTH” or “MEDICAL” or “HOSPITAL” or “CRITICAL ILLNESS” or “INDEMNITY” or “SURGICAL” or “WELFARE”
• Plan name contains any of the following:
  • “DISABILITY” or “DISAB”
  • “LIFE INSURANCE” or “LIFE INS” or “GROUP LIFE”
  • “AD&D” or “AD & D” or “AD AND D” or “ACCIDENT”
  • “TRAVEL”
• Plan name (but not the sponsor name) contains any of the following:
  • “DISABILITY” or “DISAB”
  • “LIFE INSURANCE” or “LIFE INS” or “GROUP LIFE”
  • “TRAVEL”

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