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The American Recovery and Reinvestment Act of 2009 (ARRA), as amended on March 2, 2010 by the Temporary Extension Act of 2010, provides for premium reductions for health benefits under the Consolidated Omnibus Budget Reconciliation Act of 1985, commonly called COBRA. Eligible individuals pay only 35 percent of their COBRA premiums and the remaining 65 percent is reimbursed to the coverage provider through a tax credit. To qualify, individuals must experience a COBRA qualifying event that is the involuntary termination of a covered employee’s employment. The involuntary termination must generally occur during the period that began September 1, 2008 and ends on March 31, 2010. (An involuntary termination of employment that occurs on or after March 2, 2010 but by March 31, 2010 and follows a qualifying event that was a reduction of hours that occurred at any time from September 1, 2008 through March 31, 2010 is also a qualifying event for purposes of ARRA.) The premium reduction applies to periods of health coverage that began on or after February 17, 2009 and lasts for up to 15 months. See Temporary Extension Act of 2010.

Link http://www.dol.gov/ebsa/cobra.html

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Through its enforcement of the Employee Retirement Income Security Act (ERISA), the Employee Benefits Security Administration (EBSA) is responsible for ensuring the integrity of the private employee benefit plan system in the United States. EBSA’s oversight authority extends to nearly 695,000 retirement plans, 2.8 million health plans, and a similar number of other welfare benefit plans, such as those providing life or disability insurance.  These plans cover about 150 million workers and their dependents and include assets near $5 trillion.

Link http://www.dol.gov/ebsa/newsroom/fsFYagencyresults.html

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SUMMARY This document contains a proposed rule under the Employee Retirement Income Security Act, and parallel provisions of the Internal Revenue Code of 1986, relating to the provision of investment advice to participants and beneficiaries in individual account plans, such as 401(k) plans, and beneficiaries of individual retirement accounts (and certain similar plans). Upon adoption, the proposed rule would implement provisions of a statutory prohibited transaction exemption, and would replace guidance contained in a final rule, published in the <E T=’04′> Federal Register</E> on January 21, 2009, that was withdrawn by the Department pursuant to a Notice published in the <E T=’04′> Federal Register</E> on November 20, 2009.Link http://www.federalregister.gov/OFRUpload/OFRData/2010-04196_PI.pdf

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On July 20, 2009, the Employee Benefits Security Administration issued Field Assistance Bulletin (FAB) 2009-02, addressing the application of certain Form 5500 and Form 5500-SF annual reporting requirements to tax-sheltered annuity programs described in section 403(b) of the Internal Revenue Code (403(b) plans). Specifically, FAB 2009-02, in recognition of compliance challenges facing many 403(b) plans subject to Title I of ERISA, provided transitional relief from the annual reporting and related auditing requirements for plans with respect to certain tax-sheltered annuity contracts and custodial accounts entered into prior to January 1, 2009. The FAB stated that, for purposes of the plan’s annual reporting and related audit requirements, an annuity contract or custodial account does not need to be treated as part of the plan or as plan assets if it meets the following conditions: (1) the contract or account was issued to a current or former employee before January 1, 2009; (2) the employer ceased to have any obligation to make contributions (including employee salary reduction contributions) and in fact ceased making contributions to the contract or account before January 1, 2009; (3) all of the rights and benefits under the contract or account are legally enforceable against the insurer or custodian by the individual owner of the contract or account without any involvement of the employer; and (4) the individual owner of the contract or account is fully vested.

The Department received questions on the scope of and conditions for the relief provided by that FAB, as well as questions concerning the scope of the safe harbor regulation at 29 CFR 2510.3-2(f). This Bulletin supplements FAB 2009-02 by responding to many of those questions.

Link http://www.dol.gov/ebsa/regs/fab2010-1.html

Link http://www.dol.gov/ebsa/faqs/faq-sch-C-supplement.html

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The Department of Labor and the Department of the Treasury (the ‘ Agencies’’) are currently reviewing the rules under the Employee Retirement Income Security Act (ERISA) and the plan qualification rules under the Internal Revenue Code (Code) to determine whether, and, if so, how, the Agencies could or should enhance, by regulation or otherwise, the retirement security of participants in employersponsored retirement plans and in individual retirement arrangements (IRAs) by facilitating access to, and use of, lifetime income or other arrangements designed to provide a lifetime stream of income after retirement. The purpose of this request for information is to solicit views, suggestions and comments from plan participants, employers and other plan sponsors, plan service roviders, and members of the financial community, as well as the general public, on this important issue.

Link http://edocket.access.gpo.gov/2010/pdf/2010-2028.pdf

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The Department’s EBSA plans to publish a proposed regulation in June 2010 to amend the current regulatory definition of “fiduciary” to include more persons, such as pension consultants, as fiduciaries. As a result, these persons become subject to the Employee Retirement Income Security Act’s (ERISA) fiduciary responsibility rules, and will owe a duty of undivided loyalty to their plan clients.

Link http://www.dol.gov/ebsa/regs/unifiedagenda/ebsafall2009/1210-AB32fs.html

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SUMMARY: This document contains a final regulation that establishes a safe harbor period during which amounts that an employer has received from employees or withheld from wages for contribution to certain
employee benefit plans will not constitute “plan assets” for purposes of Title I of the Employee Retirement Income Security Act of 1974, as amended (ERISA), and the related prohibited transaction provisions of the Internal Revenue Code. This regulation will enhance the clarity and certainty for many employers as to when participant contributions will be treated as contributed in a timely manner to employee benefit plans. This final regulation will affect the sponsors and fiduciaries of contributory group welfare and pension plans covered by ERISA, including 401(k) plans, as well as the participants and beneficiaries covered by such plans and recordkeepers, and other service providers to such plans.

Link http://frwebgate6.access.gpo.gov/cgi-bin/TEXTgate.cgi?WAISdocID=658629315800+1+1+0&WAISaction=retrieve