DOL and Treasury Extend ERISA-Related Deadlines Following Hurricane Impacts

The Departments of Labor and Treasury, along with HHS, have extended ERISA-related deadlines for retirement and health plans due to the impacts of Hurricane Helene, Tropical Storm Helene, and Hurricane Milton. This includes allowing good faith delays in notifications and suspending various participant deadlines during designated disaster periods from late September 2024 to early May 2025 across multiple states.

On November 8, the Departments of Labor and Treasury released guidance aimed at extending specific deadlines pertinent to retirement, health, and welfare plans, in light of the recent impacts of Hurricane Helene, Tropical Storm Helene, and Hurricane Milton. This was complemented by a subsequent bulletin issued by the Department of Health and Human Services (HHS) on November 14, 2024.

The guidance includes multiple documents: the EBSA Disaster Relief Notice 2024-01, which permits delays in the delivery of ERISA-related notifications for plans making a good faith effort to notify participants; the Final Rule which suspends various crucial participant deadlines, including those relating to COBRA and HIPAA; and FAQs offering clarity to affected beneficiaries regarding their ERISA rights. Additionally, an Insurance Standards Bulletin encourages non-federal governmental plans and insurers to adopt similar participant deadline extensions.

The relief measures will be applicable throughout designated disaster periods in states like Florida, Georgia, North Carolina, South Carolina, Virginia, and Tennessee, effectively spanning from late September 2024 to early May 2025, based on the specific disaster event.

The Notice underscores the authority of the Department of Labor to implement these deadline adjustments under ERISA section 518 due to a Presidentially-declared disaster, aligning with previous actions taken during other disasters. This relief is intended to minimize disruption in benefit access and delivery during the disaster period, necessitating plans to undertake disclosures and notifications as expediently as possible, especially through electronic means where applicable.

The recent extensions of ERISA-related deadlines are a response to natural disasters that have significantly impacted communities in several states. Recognizing the disruption caused by Hurricane Helene and Tropical Storm Helene, the Departments of Labor and Treasury, along with HHS, have acted to relieve affected participants and beneficiaries of time-sensitive requirements regarding their benefits. This situation necessitates flexibility in the management of retirement plans and health coverage to ensure that those affected can recover without the added burden of strict regulatory deadlines, thereby enhancing support for recovery efforts during and after such calamities.

In conclusion, the Departments of Labor and Treasury along with HHS have instituted critical relief measures for individuals affected by Hurricanes Helene and Milton. These measures extend essential ERISA deadlines, providing substantial flexibility to participants and beneficiaries during the recovery process. Such guidance not only supports those directly impacted but also encourages the responsible administration of health and welfare plans under significantly challenging circumstances.

Original Source: www.jdsupra.com