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Employee Benefits Management News
- CMS clarifies impact of PACE Act on SHOP exchanges
- EBSA: Stop-loss policies purchased to manage self-insured welfare plan risk are not plan assets
- FAQs address array of preventive care coverage issues
- ACA’s automatic enrollment provision repealed
Pension Plan Guide News
- EBSA clarifies its views on plan fiduciaries duties concerning economically targeted investments
- PBGC updates premium rates for 2016
- PBGC maximum monthly benefit guarantee remains the same for 2016
- Reeder sworn in as Director of PBGC
CMS clarifies impact of PACE Act on SHOP exchanges
The Centers for Medicare & Medicaid Services (CMS) has issued Frequently Asked Questions (FAQs) on the impact of the recently enacted Protecting Affordable Coverage for Employees (PACE) Act, which revised the definition of “small employer” for purposes of the health care exchanges. For more information, see ¶2091E.
EBSA: Stop-loss policies purchased to manage self-insured welfare plan risk are not plan assets
Stop-loss insurance policies purchased by a plan sponsor to manage risk associated with a self-insured contributory welfare plan do not constitute plan assets, according to a recent EBSA Advisory Opinion. For details, see ¶2091F.
FAQs address array of preventive care coverage issues
The Departments of Labor (DOL), Health and Human Services (HHS) and the Treasury (Departments) have jointly issued a set of Frequently Asked Questions (FAQs) that address the coverage of preventive services under the market reforms of the Patient Protection and Affordable Care Act (ACA). For more information, see ¶2091G.
ACA’s automatic enrollment provision repealed
President Obama has signed into law a two-year budget agreement, the Bipartisan Budget Act of 2015, which includes a health care-related section that repeals the automatic enrollment requirement under the Patient Protection and Affordable Care Act (ACA). For more information, see ¶2091L.
EBSA clarifies its views on plan fiduciaries duties concerning economically targeted investments
The Employee Benefits Security Administration (EBSA) has issued new guidance clarifying the obligations of retirement plan fiduciaries related to the consideration and selection of economically targeted investments (ETIs) for their plans. ETIs are investments that are selected for the collateral economic or social benefits they create in addition to the investment return to the plan investor. EBSA is withdrawing Interpretive Bulletin 2008-01 and replacing it with the new guidance that reinstates the language of Interpretive Bulletin 94-1. For more information, see ¶139D.
PBGC updates premium rates for 2016
The PBGC has updated the flat rate and variable rate premiums for 2016. The per-participant flat premium rate for plan years beginning in 2016 is $64 for single-employer plans (up from a 2015 rate of $57) and $27 for multiemployer plans (up from a 2015 rate of $26). The increase in the single-employer rate was provided in The Bipartisan Budget Act of 2013. The increase in the multiemployer rate is the result of indexing. For plan years beginning in 2016, the variable-rate premium (VRP) for single-employer plans is $30 per $1,000 of unfunded vested benefits (UVBs), up from a 2015 rate of $24. This $6 increase reflects a $5 increase provided in The Bipartisan Budget Act of 2013 plus a $1 increase due to indexing. For more information, see ¶139F.
PBGC maximum monthly benefit guarantee remains the same for 2016
The Pension Benefit Guaranty Corporation has announced that the annual maximum guaranteed benefit for a 65-year-old retiree in a single-employer plan remains at $60,136 for 2016. The guarantee for multiemployer plans also remains unchanged. For more information, see ¶19981z51.
Reeder sworn in as Director of PBGC
W. Thomas Reeder Jr. recently took the oath of office to become the 15th director of the Pension Benefit Guaranty Corporation (PBGC). Prior to joining PBGC, Reeder served as benefits tax counsel in the Office of Tax Policy at the U.S. Department of the Treasury. He succeeds Josh Gotbaum, who served as director from July 2010 to September 2014. For more information, see ¶139B.
For more information, visit http://www.wolterskluwerlb.com/rbcs.