Our May 4, 2022 virtual briefing discussed legislative and regulatory changes that impact health and welfare benefits-related issues facing employers today. Topics discussed include:
- Year-end mandatory and recommended amendments for retirement plans
- Year-end mandatory and recommended amendments for health and wellness plans
- Update on mental health parity qualitative assessments
- Health and welfare plan fiduciary governance
- The Department of Labor (DOL) pronouncement against crypto in retirement plans
- Lifetime income illustrations to direct contribution plans
- ERISA litigation update
Key takeaways from our conversation include:
- Make sure your retirement plan documents align with the Setting Every Community Up for Retirement Enhancement (SECURE Act), CARES Act, and Consolidate Appropriations Act (CAA) 2021 design and administrative changes by the last day of the 2022 plan year (e.g., December 31, 2022)
- Have clear and reasonable defensive provisions that work for your retirement plan and your organization
- If you sponsor a group health plan, you need to ensure that your service providers comply with the myriad requirements coming due this year under the No Surprises Act and the Transparency in Coverage Rule
- Any of the optional COVID-19-related flexible spending account (FSA) and cafeteria plan relief implemented in 2021 needs to be memorialized in plan amendments by the end of 2022
- The recent Supreme Court decision on ERISA 401(k)/403(b) class action lawsuits will not discourage such lawsuits, so make sure your fiduciary practices are prudent
- The DOL is increasing enforcement activity on mental health parity, and employers should act now to ensure the new comparative analysis documents are prepared
- Plan sponsors and administrators should consider establishing health and welfare plan fiduciary committees to navigate increasing fiduciary risks and several new legislative and regulatory requirements
- In light of the DOL’s recent guidance on cryptocurrency offerings under retirement plans, each fiduciary committee should discuss the matter with their investment advisor and spell out a clear position in their investment policy statement
- Committees should also revisit their brokerage window service agreement to understand its parameters and, as appropriate, negotiate changes consistent with their position on crypto
- 401(k) and 403(b) plans must include new lifetime income disclosures, beginning June 31, 2022