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The Department of Labor issued Disaster Relief Notice 2021-01. It gives guidance on the duration of the COVID-19 related relief regarding certain employee benefit plan deadlines during the Outbreak Period.
The guidance allows employers to disregard the Outbreak Period when enforcing certain employee benefit plan deadlines. By law, the Outbreak Period cannot exceed one year. It began on March 1, 2020 and the relief was expected to expire on February 28, 2021. The new guidance allows the relief to extend beyond this date in certain situations.
Specifically, the relief extended HIPAA, COBRA, claims procedures, and the external claim review process time frames. It will also give plan sponsors more time to furnish benefit statements and other notices and disclosures.
According to the DOL Notice, the one-year limit on the relief (related to the Outbreak Period) to begin on the date of action would otherwise have been required in a given situation. Individuals and plans subject to the initial relief can extend the applicable deadlines until the earlier of:
Time frames for plans and individuals with periods that were previously disregarded will resume. Cases with disregarded periods cannot exceed one year.
The DOL recognizes that beneficiaries and plan participants may encounter problems when the relief may no longer be available due to the one-year limit. Plan administrators may want to make reasonable accommodations to prevent the loss or delay in payment of benefits in these cases and take steps to minimize the possibility of some losing benefits because of a failure to comply with pre-established timelines.
Download the bulletin for more details.
This blog is intended to be a compilation of information and resources pulled from federal, state, and local agencies. This is not intended to be legal advice. For up to the minute information and guidance on COVID-19, please follow the guidelines of the Centers for Disease Control and Prevention (CDC) and your local health organizations.