2013 has been a busy year in benefits, to say the least! HR/benefits directors have amassed quite a scroll of rule changes and policy shifts, born from action by the federal government, court system or both. As we reflect on some of this year’s major developments, we’re making a list and checking it twice. Read below to see which benefits rulings and regulations made our naughty and nice lists.
Obama administration delays Affordable Care Act employer mandate
Under the health care reform law, companies with 50 or more workers must provide affordable coverage to full-time employees or pay per employee tax penalties. Although the employer mandate was due to take effect Jan. 1, 2014, the Obama administration caused fireworks over July 4 when it announced the requirement would be delayed until 2015. The shift doesn’t alter the trajectory of most large employers, which intended to maintain health benefit programs in 2014 anyway. For small and mid-size businesses, the delay offers more time to cement decisions around staffing and employee hours. List: Nice
IRS, Treasury Department allows $500 rollovers for flexible spending accounts
Clearly, whatever official signed off on this one didn’t take note of the timing. As an estimated one-quarter of FSA accountholders forfeit part of their balances due to the former use-it-or-lose-it rule, the change likely is a welcome one among consumers. However, in the thick of a busy open enrollment season, few employers had the time, energy or inclination to consider allowing rollovers for 2013. Most, one survey finds, will wait until 2014 to take on this rule change—and the communications challenges that come with it. List: Naughty
DOL permits reset on annual 401(k) disclosures
The Department of Labor announced this summer that it would allow 401(k) plans to reset the timing for distributing the annual investment comparative chart that they are required to provide to plan participants. According to DOL assistant secretary Phyllis Borzi, the shift was “in response to requests from a number of employers who say it will be better for their workers if the comparative chart could be mailed out a little later in the year along with other disclosures.” For sponsors that reset the disclosure deadline, no more than 18 months may pass before participants receive their next comparative chart. Anything that gives employers more breathing room on regulatory compliance is okay by us. List: Nice.
White House proposes reinstating health coverage terminated by ACA
At a press conference last month, President Obama proposed allowing individuals whose health insurance policies were cancelled under the Affordable Care Act to renew them through the end of 2014. The proposal not only creates a communication and administrative nightmare, but the policies were terminated in the first place for failing to meet ACA’s minimum benefits guidelines and the proposal was largely politically driven so that the president could save face on his promise to Americans that “if you like your plan you can keep it.” List: Naughty
Supreme Court strikes down Defense of Marriage Act
The Supreme Court’s landmark pair of rulings on June—striking down the Defense of Marriage Act and invalidating a 9th Circuit appellate decision on California’s Proposition 8—were a clear victory for supporters of full marriage equality and rights for same-sex couples. With its decisions, the Court set forth several action items in terms of benefits design and administration. Although this added challenges to employers’ already full plates this year, the ruling was another step toward equal rights, equal protections and equal benefits for all—we like it. List: Nice