DOL and Treasury Announce ERISA-Related Deadline Extensions for Hurricane Affected Areas

On November 8, 2024, the Departments of Labor and Treasury announced extensions on essential ERISA-related deadlines due to Hurricanes Helene and Milton. These extensions allow affected participants to comply with health and welfare plan requirements without immediate deadlines as they recover from the impacts of these disasters.

On November 8, 2024, the Departments of Labor and Treasury extended essential deadlines for retirement, health, and welfare plans in response to the devastating impacts of Hurricane Helene and Hurricane Milton. This guidance aims to provide necessary relief to affected participants and beneficiaries by ensuring compliance with ERISA requirements during designated disaster periods. Additionally, the Department of Health and Human Services issued a similar bulletin on November 14, 2024, reinforcing this relief.

The guidance consists of four key documents: the EBSA Disaster Relief Notice 2024-01, which permits extended reporting deadlines for ERISA-required notifications as long as these are delivered as soon as reasonably possible; the Final Regulations that suspend certain health and welfare deadlines, including those related to COBRA and HIPAA special enrollment; FAQs to aid participants in understanding their rights; and an Insurance Standards Bulletin that encourages non-federal governmental plans to extend participant deadlines.

The effective relief periods for these disasters in various states run from September 23, 2024, through May 1, 2025, encompassing areas in Florida, Georgia, North Carolina, South Carolina, Virginia, and Tennessee. Importantly, under ERISA Section 518, the Secretary has the authority to postpone deadlines due to presidential disasters, a power that has been utilized previously for similar situations. During these disaster periods, violations of ERISA for delays in notifications will not be enforced, provided that administrators act in good faith.

The Final Rule, in particular, delineates the specific requirements during the disaster period, thereby suspending significant deadlines for participants that would typically apply, including COBRA election notices and special enrollment requests. This suspension allows participants adequate time to address their needs without the pressure of immediate deadlines.

Overall, the guidance underscores the Departments’ commitment to ensuring that individuals impacted by these disasters receive the necessary support and protections under ERISA, facilitating their recovery in affected regions. As participants navigate the complexities of health and welfare plans, these extensions aim to alleviate the burdens imposed during such emergencies.

Hurricanes can severely impact communities, disrupting normal business operations and affecting individuals’ access to health and welfare benefits. In light of recent disasters like Hurricanes Helene and Milton, the Departments of Labor and Treasury have responded by extending deadlines associated with employee benefit plans. These official measures are crucial for safeguarding employees’ rights and ensuring continuity of care during challenging times, allowing affected individuals the necessary leeway to manage their situations. The extending regulations reflect past strategies employed by the government in similar calamities, reinforcing their ongoing commitment to supporting impacted workers and their families.

In summary, the Departments of Labor and Treasury have instituted critical extensions for ERISA-related deadlines following Hurricanes Helene and Milton, enabling affected participants to receive due assistance without stringent time constraints. By allowing postponed deadlines for various health and welfare plan requirements, these measures demonstrate a compassionate approach during a time of crisis. Their efforts underscore the essential framework set forth under ERISA to protect individuals during federally declared disasters, ensuring that plans remain accessible and beneficial to those in need.

Original Source: www.jdsupra.com