2021 Consolidated Appropriations Act and Employee Benefits

Description

On Dec. 27, 2020, the CAA was signed into law. Employee benefits attorneys must understand its key provisions impacting retirement and health and welfare plans and implement any necessary plan amendments and administrative safeguards.

The CAA contains significant provisions relating to employee benefits that extend or clarify relief provided in the CARES Act and the Families First Coronavirus Response Act (FFCRA). It also provides other key provisions requiring specific amendments to benefit plans.

For health and welfare plans, the CAA includes provisions designed to increase transparency in employee health benefit plans, such as the removal of clauses limiting the disclosure of price and quality information, compensation to brokers and consultants under Section 408(b)(2) of ERISA, revisions to ERISA and PHSA and the tax code, and other key items. It also includes guidance and relief for flexible spending arrangements.

For retirement plans, the CAA includes provisions providing a safe harbor for partial plan terminations, an extension of CARES Act distributions to certain plans, and the termination of future transfers. Other critical components of the 2021 CAA include new provisions relating to employer tax credits, fringe benefits, and other key items.

Listen as our panel discusses significant rules for retirement and health and welfare plans, compliance and administrative challenges stemming from the CAA, and methods for managing them.