Compliance Update: What's Required By Year-End?
Insights
11.01.11
(Benefits Update, No. 4, November 2011)
As 2011 draws to a close and everyone looks forward to winding down and getting ready for the holiday season, we want to make sure that you have taken care of certain regulatory compliance matters with respect to your employee benefit plans between now and December 31, 2011. The information below briefly describes what is required to make sure your plan(s) is set for the new year!
Type of Plan |
What's Required |
Topic |
Brief Description |
Deadline |
|
401k (and other qualified plan accounts) |
Optional Amendment |
In-Plan Roth Conversions |
If plan permits in-plan conversions for plan year prior to 2012, then amendment is required |
12/31/11 |
|
401k (and other qualified plan accounts; 403(b), etc.) |
Amendment |
Waiver of Required Min. Distributions for 2009 |
This is an amendment to reflect operational compliance |
12/31/11 |
|
401k Plans |
Annual Notice |
Automatic Enrollment |
Notice indicating plan's automatic enrollment feature |
Prior to 12/1/11 |
|
401k Plans |
Annual Notice |
Safe Harbor |
Notice of plan's safe harbor status |
Prior to 12/1/11 |
|
401k Plans |
Annual Notice |
Qualified Default Investment Alternative |
Notice indicating plan's default investment if an investment is not selected during enrollment, etc. |
Prior to 12/1/11 |
|
Benefit Plans |
Annual Notice |
Summary Annual Report |
Notice regarding status of the plan and summary of benefits |
12/15/11 (assuming 5500 was filed 10/15/11) |
|
Governmental Plans |
Amendment |
HEART Act |
Plans must be amended to comply with various provisions regarding death benefits, differential pay and other benefits for qualified military service |
12/31/12 |
|
Governmental Plans |
Amendment |
Pension Protection Act (PPA) |
Plans must be amended to comply with various PPA requirements (i.e., distributions, notices, administration issues) |
12/31/11 |
|
Health/Welfare |
Administration Process (possible Amendment) |
Health Care Reform (HCR): External Appeals Process & Independent Review Organizations (IRO) |
Plans must have selected and put into place an IRO for external appeals, of which the plan must have selected 2 IROs by 1/1/2012 and 3 IROs by 7/1/2012 |
12/31/11 & 6/30/12 |
|
Health/Welfare |
Amendment |
Annual Limit on Essential Benefits |
Effective 1/1/12, limit goes from $750,000 to $1.25M |
12/31/11 |
|
Health/Welfare |
Amendment |
HCR: New Internal & External Appeals Process |
Under HCR, new procedures and requirements apply for internal and external appeals process |
12/31/11 |
|
Health/Welfare |
Annual Enrollment Issue & Status Check |
HCR and Grandfathered Plans |
If plan is grandfathered, ensure limitations are not exceeded regarding benchmarks |
12/31/11 |
|
Health/Welfare |
Annual Notice |
Medicare Part D |
Notice to Medicare eligible participants regarding creditable coverage |
10/15/11 |
|
Health/Welfare |
Annual Notice |
CHIP Notice |
Notice regarding state's premium assistance programs |
12/31/11 |
|
Health/Welfare |
Annual Notice |
HCR: Summary of Benefits and Coverage |
Health plans must provide Summary of Benefits and Coverage that outlines covered benefits and coverage limitations |
3/23/12 |
|
Health/Welfare |
Annual Notice |
HIPAA/HITECH Breach Report |
Notice to HHS if there has been a breach of protected health information affecting 500 or less individuals |
Prior to 3/1/12 |
|
Multiemployer Pension Plans |
Administration Process (possible Amendment) |
New FASB Disclosure Requirements |
Disclosure of the overall health of the plan, the level of the employer's participation in the plan, and employer's contributions to the plan |
December 15, 2011 for public entities December 15, 2012 for non-public entities |
|
Pension Plans |
Amendment |
Benefit Payments & Accruals |
Imposes limits on benefit payments and accruals (based on funding status of plan) |
12/31/11 |
|
Pension Plans |
Annual Notice |
Plan Funding Status Notice |
Notice regarding funding status for prior 2 years, statement of plan's assets and liabilities, and certain other information |
4/30/12 (Plans with less than 100 participants notice deadline is due date for IRS Form 5500) |
|
Qualified Plans |
Administration Process (possible Amendment) |
Determination Letter Application |
Cycle A which includes plans sponsored by employers with EINs ending in the digits 1 or 6 |
Application must be filed by 1/31/2012 |
For more information contact the author at jpope@laborlawyers.com or (214) 220-9100.