DOL and Treasury Extend ERISA-Related Deadlines Following Hurricanes Helene and Milton

The Departments of Labor and Treasury have extended ERISA-related deadlines for retirement and health plans due to Hurricanes Helene and Milton. The guidance includes the EBSA Disaster Relief Notice 2024-01, a Final Rule suspending specific deadlines, and FAQs to help participants understand their rights. Deadlines are postponed until May 1, 2025, for affected areas, easing compliance during the disaster period.

On November 8, 2024, the Departments of Labor and Treasury issued guidance to extend deadlines for retirement, health, and welfare plans due to Hurricane Helene and Tropical Storm Helene. This extension includes three components: the EBSA Disaster Relief Notice 2024-01, which allows delays for required ERISA notifications; the Final Regulations that suspend certain health and welfare plan deadlines; and FAQs designed to clarify participant rights. The provisions aim to alleviate administrative burdens on affected plans and participants during the designated disaster periods for the impacted areas in Florida, Georgia, North Carolina, South Carolina, Virginia, and Tennessee, which extend until May 1, 2025. This relief includes notifications such as SPDs, benefit determinations, and COBRA-related deadlines, ensuring that plan administrators act in good faith while maintaining compliance with ERISA. Furthermore, it provides non-enforcement relief to health insurance issuers and governmental plans, encouraging them to adopt similar extensions. Ultimately, the Departments have sought to minimize disruptions following the disasters, prioritizing public welfare and the continuity of benefits for those impacted.

The guidance issued by the Departments of Labor and Treasury reflects a proactive response to significant natural disasters that have caused disruption in multiple states. Given the complexities surrounding ERISA regulations and the obligations of plan administrators, the temporary relief measures announced aim to ease compliance pressures during these challenging periods. The notice and accompanying regulations signify the Departments’ commitment to supporting individuals and entities affected by Hurricanes Helene and Milton while maintaining adherence to federal obligations under ERISA.

In conclusion, the recently issued guidance by the Departments of Labor and Treasury serves to extend critical deadlines for retirement and health plans in areas affected by Hurricanes Helene and Milton. By facilitating the timely delivery of notifications and postponing other administrative deadlines, the Departments aim to uphold the rights of participants and alleviate the burdens on plan administrators during this disaster period. These measures underscore the importance of regulatory flexibility in response to unforeseen natural disasters.

Original Source: www.jdsupra.com