September 18, 2018

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Podcast Episode 39: Retirement's in the News

In this podcast, Beth Allen and K.C. Barner discuss some of the current events on the retirement side of employee benefits. They’ll talk about the recent IRS private letter ruling that may allow employees to receive 401(k) matching contributions that coincide with their student loan payments. They’ll also review Pres. Trump’s recent executive order on retirement plans and comment on the retirement legislation that’s currently making its way through Congress.

Every other week, NFP's legal experts make the subject of compliance personal for a wide audience. By breaking down the daunting details of emerging policies and bridging the gap between legislation and what it means for the listener, Chase Cannon and Suzanne Spradley make compliance issues relatable and relevant. Visit our Soundcloud page every two weeks for the most up-to-date episode.

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Reminder: Calendar Year SAR Must Be Distributed by Sept. 30, 2018

Plans that are subject to ERISA and Form 5500 filing must distribute the Summary Annual Report (SAR) to participants within nine months of the end of the plan year; thus, a calendar year plan is required to distribute the SAR for the 2017 plan year by Sept. 30, 2018. If the plan applied for an extension to the Form 5500 filing, the SAR is then due within two months following that filing.

The SAR is a summary of the plan’s information reported on the Form 5500. If a plan isn’t subject to Form 5500 filing, then it’s exempt from the SAR notice requirement — this would include church plans, governmental plans and unfunded or insured plans with fewer than 100 participants. Also, large, unfunded self-insured plans are exempt from the SAR requirement even though they are subject to the Form 5500 filing requirement.

Model language is available for SAR preparation. Please ask your advisor for assistance. For additional information, see the frequently asked question featured in this edition of Compliance Corner.

It's MLR Rebate Time Again!

The ACA requires insurers to submit an annual report to HHS accounting for plan costs. If the insurer doesn't meet the medical loss ratio standards, they must provide rebates to policyholders. Rebates must be distributed to employer plan sponsors between Aug. 1, 2018, and Sept. 30, 2018. Employers should keep in mind that if they receive a rebate, there are strict guidelines as to how the rebate may be used or distributed.

For more information, please contact your advisor for a copy of "Medical Loss Ratio Rebates: A Guide for Employers" or "Medical Loss Ratio: PPACA's Rules on Rebates."

Reminder: Medicare Part D Notice to Employees Deadline Is Oct. 14, 2018

Employers must notify individuals who are eligible to participate in their medical plan whether the plan’s prescription drug coverage is “creditable” or “non-creditable” as compared to Medicare Part D coverage.

As a reminder, the Medicare Part D notice of creditable coverage should be distributed to employees by Oct. 14, 2018. This notice serves to put Medicare-eligible individuals on notice as to whether or not their employer group coverage is creditable. That information is necessary to help such individuals avoid paying higher premiums (also known as late enrollment penalties) for Medicare Part D coverage.

Employers should consult with their service providers to determine whether their coverage is creditable using either the simplified determination method or an actuarial analysis. Also keep in mind that CMS provides a model notice for employers.