In trying to keep up with the legislative changes for 2020 and 2021, do you feel like you are watching three baseball games being played on the same field, at the same time? To know what must be changed versus what is optional for Wrap Plan Documents and SPDs continues to be difficult. Fortunately, Emily Marr from our ERISA Desk team was able to provide a table with pertinent details to help you track these changes.
Please note: The table is based on legislative changes as of 3/18/2021.
|Law/Reg||Description||Plans Affected||Optional or Mandatory?||Permanent or Temporary?|
|FFCRA/CARES Act||Emergency Family and Paid Leave||Wrap, Health FSA||Mandatory||Temporary/Ended|
|CARES Act||Removal of ACA limit on OTC drug reimbursements from account-based health plans, plus addition of menstrual products||Health FSA, Wrap (if plan includes account-based group health benefits)||Mandatory||Permanent|
|Joint DOL/IRS Notice||Extension of certain plan deadlines (COBRA, HIPAA Special Enrollment, appeals)||Wrap, Health FSA||Mandatory||Temporary/Still Active|
|DOL||Updated COBRA General Notice to add Medicare information||Wrap, Health FSA||Mandatory||Permanent|
|IRS Notice 2020-29||Midyear Election Changes (group health plans and FSAs)||Wrap, FSA, POP||Optional||Temporary/Ended|
|Extended grace period to incur FSA claims||FSA||Optional||Temporary/Ended|
|IRS Notice 2020-33||Increase in Health FSA Carryover to 20% of the maximum limit||Health FSA||Optional||Permanent|
|Consolidated Appropriations Act 2021||Allow midyear election changes in PY ending in 2021 without a QLE||FSA||Optional||Temporary/Still Active|
|Allow participants to carry over all/some unused funds in PY ending in 2020||FSA||Optional||Temporary/Still Active|
|Allow participants to carry over all/some unused funds in PY ending in 2021||FSA||Optional||Temporary/Still Active|
|Extend Grace Period up to 12 months after PY ending in 2020||FSA||Optional||Temporary/Still Active|
|Extend Grace Period up to 12 months after PY ending in 2021||FSA||Optional||Temporary/Still Active|
|Permit employees terminated in 2020 to spend down their Health FSA through the end of the termination Plan Year (without electing COBRA)||Health FSA||Optional||Temporary/Still Active|
|Permit employees terminated in 2021 to spend down their Health FSA through the end of the termination Plan Year (without electing COBRA)||Health FSA||Optional||Temporary/Still Active|
|During the 2020 calendar year, increase the limiting age of eligible dependents to age 14 (rather than age 13) for Plan Year with open enrollment on or before January 31, 2020||Dependent Care FSA||Optional||Temporary/Still active|
|American Rescue Plan Act (ARPA), 2021||100% COBRA Subsidies from April 1, 2021, to September 30, 2021||Wrap||Mandatory||Temporary/Still Active|
|Dependent Care FSA maximum contribution increase to $10,500 ($5250, if married/filing separately)||Dependent Care FSA||Unclear/need guidance||Temporary/Still Active|
Coming in April, Wrangle will report on the recent legislation on COBRA subsidies and their impact on Wrap Plan Documents. Emily Marr will be remembering what took place in 2009 when similar subsidies were issued. With history seeming to repeat itself, we have a handle on what is needed for 2021.
If you have any questions, feel free to contact Ann McAdam at firstname.lastname@example.org.
Special Disclaimer: Information relayed through this blog and other Wrangle-produced materials serves to provide general information only; whether expressed or implied, it is not intended to constitute legal or other advice or opinions on any specific matters and is not intended to replace the advice of a qualified attorney, accountant, or other professional advisor. Wrangle applies its best effort to provide accurate and complete results and provides its service in accordance with the ERISA rules that govern. Furthermore, Wrangle encourages the Plan Sponsor to consult with their ERISA attorney to determine the impacts on their ERISA Plan.