Insights

In 2019, the IRS issued final regulations on hardship distributions, as directed under the Bipartisan Budget Act of 2018. The regulations made several changes to the requirements plan sponsors must impose on participants seeking hardship distributions. The changes were effective for hardship distributions made on or after January 1, 2020. Uniform Standard and Participant Representation of Need The final regulations changed the previous rules by requiring plan sponsors to apply a uniform standar

On February 23, 2023, the DOL, HHS and IRS (the departments) released FAQs regarding implementing certain transparency requirements under the Consolidated Appropriations Act, 2021 (CAA, 2021). Specifically, the guidance addresses the annual attestation of compliance with the CAA, 2021 prohibition against gag clauses. The FAQs explain that a 'gag clause' in the healthcare context refers to a contractual term that directly or indirectly restricts information that a group health plan or insurer c

On February 13, 2023, in American Securities Association v. DOL, a Florida district court struck down portions of 2021 DOL interpretive guidance regarding Prohibited Transaction Exemption (PTE) 2020-02 that expanded the circumstances in which an investment advisor is subject to fiduciary duties under ERISA. Under a 1975 DOL regulation, an ERISA retirement plan fiduciary includes a person who, pursuant to a mutual agreement, renders individualized investment advice to the plan 'on a regular bas

On February 21, 2023, the IRS published final regulations (T.D.9972), significantly expanding the electronic filing mandate for various returns, including Forms 1094 and 1095-C, 1099-series and Forms W-2 beginning in 2024. The final regulations reflect changes made by the Taxpayer First Act of 2019 to increase electronic filing requirements. The reason for the delayed application date to 2024 is to give sufficient time for impacted filers and vendors to prepare for an increase in electronic fil

The IRS has released updated versions of Publications 502 and 503 for the 2022 tax year. Publication 502 describes medical expenses taxpayers can deduct on the 2022 federal tax returns, while Publication 503 explains the requirements necessary for taxpayers to claim the dependent care tax credit for child and dependent care expenses. The updated version of Publication 502 is virtually identical to that of 2021, with two substantive changes: The standard mileage rate for the use of a vehicle

On February 6, 2023, New Jersey Gov. Murphy signed into the law commonly called 'The New Jersey Temporary Workers' Bill of Rights (A1474 2R),' which requires temporary staffing agencies and their clients in certain industries to equalize the compensation and benefits of temporary workers with that of regular employees, provide each temporary worker with a detailed itemized statement of wage and deduction information and other requirements. The applicable industry includes food preparation and s

Rhode Island now requires group health plans issued or renewed after January 1, 2023, to establish a new special enrollment period for pregnant individuals to enroll mid-year. The special enrollment period extends throughout the pregnancy. Coverage must be effective as of the first month the pregnant individual applies for coverage. It appears the event would apply to any individual eligible under the group health plan who becomes pregnant, including the employee, spouse, domestic partner or ch

On January 26, 2023, the US Court of Appeals for the Ninth Circuit released an opinion that expands upon its previously released memorandum disposition reversing a district court's judgment that United Behavioral Health (UBH) wrongfully denied benefits to plaintiffs by using overly restrictive criteria for administering claims for treatment of mental health and substance abuse disorders. Plaintiffs initially filed suit against UBH in 2014, bringing claims under ERISA against the insurer for br

On January 19, 2023, the federal Office of Child Support Enforcement (OCSE) issued updates to the National Medical Support Notice (NMSN) and the instructions for the form. OCSE is the federal government agency that oversees the national child support program. It maintains the NMSN, which is the official form child support agencies send to employers to ensure that children receive healthcare coverage when available and required as part of a child support order. The NMSN has two parts, Part A an