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IRS Issues Guidance Regarding American Rescue Plan Act COBRA Subsidy | Morgan Lewis


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The Internal Revenue Service issued Notice 2021-31, providing the much-anticipated guidance plan sponsors, multiemployer plans, and COBRA administrators have been waiting for related to the COBRA subsidy provisions under the American Rescue Plan Act.
Notice 2021-31 (the Notice) is lengthy, at more than 40 pages with 86 questions and answers. Despite its length, much of the guidance is not surprising and is a carryover of previous Internal Revenue Service (IRS) guidance related to the COBRA subsidy under the American Recovery and Reinvestment Act of 2009. The Notice comes as plan sponsors and COBRA administrators are gearing up to issue required notices to subsidy eligible individuals under the American Rescue Plan Act (ARPA) (known as assistance eligible individuals). ....

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Guidance Issued on Implementation of ARPA COBRA Premium Subsidy | Saul Ewing Arnstein & Lehr LLP


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Group health continuation coverage under the Consolidated Omnibus Reconciliation Act of 1985 (“COBRA”) permits certain group health coverage to be continued by participants and beneficiaries (“qualified beneficiaries”) when coverage is lost due to certain “qualified events,” such as termination of employment or a reduction of hours. 
Under Section 9501 of the American Rescue Plan Act of 2021 (“ARPA”), an “assistance eligible individual” (“AEI”) is not required to pay the cost of COBRA coverage (“COBRA Subsidy”) for the period beginning April 1, 2021 through September 30, 2021 (“Subsidy Period”). The Employee Benefits Security Administration has issued guidance, including Frequently Asked Questions (“FAQs”) and Model Notices related to the COBRA Subsidy. Employers offering COBRA are required to provide the COBRA Subsidy to any AEI, which they then can recoup through a payroll t ....

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COVID-19 Extension Of Group Welfare Plan Benefit Deadlines Clarified Bringing Potential Relief For Employers | SmithAmundsen LLC


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In a previous blog article, we alerted readers to the extension of deadlines related to COBRA, Special Enrollment, Plan Disclosures and more. The prior Joint Notice from the DOL and IRS provided suspension of
all deadlines until 60 days after the expiration of the National Emergency, referred to as the “Outbreak Period.”
The issue requiring clarification arose due to the unanticipated length of the Outbreak Period.  Much like all of us, the IRS and DOL did not foresee an Outbreak Period continuing well over a year later.  As the one-year anniversary of the Outbreak Period approached, a conflict began to arise with ERISA section 518 and Code section 7508A(b). Those provisions generally provide that the Secretaries of Labor and the Treasury may prescribe extensions of ....

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DOL Deadline Extensions for Benefit Plan Participants Sponsors


Friday, March 5, 2021
In accordance with emergency powers granted in the wake of the COVID-19 pandemic, the IRS and DOL extended a number of benefit plan–related deadlines and provided other relief for participants and plan sponsors. The Jones Walker May 22, 2020, Employee Benefits Client Alert provided a summary of the guidance.
On Friday, February 26, 2021, the DOL issued additional guidance on certain benefit plan–related deadlines, just before the expiration of certain relief the following Monday. Deadline extensions may continue past February 28, 2021, provided the deadline at issue has not already been extended by one year as of such date, and extensions must be measured on a person-by-person basis. ....

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