The Washington Report

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January 15, 2020

Retirement

PBGC Announces Release of Comprehensive Premium Filing Instructions for 2020
On January 10, 2020, the Pension Benefit Guaranty Corporation (PBGC) released the Comprehensive Premium Filing Instructions for 2020 Plan Years on the PBGC's website. According to the PBGC, My PAA will be ready to accept 2020 filings “very soon.” The instructions reflect certain regulatory changes proposed in June 2019 including changes to the definition of a de minimis merger and participant counts for certain transfers. The instructions also reflect a shift in the reporting timing for risk transfers to be determined based on transfers in the prior premium payment period, and the addition of reporting risk transfers for participants who are in payment status. The instructions do not reflect changes in premiums for certain plans sponsored by cooperative and small employer charities (CSEC plans) as provided in the SECURE Act, enacted December 20, 2019. Premium-related guidance for those plans will be issued separately.

The “Comprehensive Premium Filing Instructions for 2020 Plan Years” document is available here.

Additional information is available here

Other HR/Employment

DOL Releases Final Rule Updating FLSA’s Joint Employer Regulations
On January 12, 2020, the Department of Labor (DOL) released a final rule to update the regulations interpreting joint employer status under the Fair Labor Standards Act (FLSA). According to the DOL, this is the first update to the regulations in more than 60 years. The final rule provides updated guidance for determining joint employer status when an employee performs work for his or her employer that simultaneously benefits another individual or entity, including guidance on the identification of certain factors that are not relevant when determining joint employer status. In the final rule, the DOL:

Specifies that when an employee performs work for the employer that simultaneously benefits another person, that person will be considered a joint employer when that person is acting directly or indirectly in the interest of the employer in relation to the employee; Provides a four-factor balancing test to determine when a person is acting directly or indirectly in the interest of an employer in relation to the employee; Clarifies that an employee’s “economic dependence” on a potential joint employer does not determine whether it is a joint employer under the FLSA; Specifies that an employer’s franchisor, brand and supply, or similar business model and certain contractual agreements or business practices do not make joint employer status under the FLSA more or less likely; and Provides several examples applying the DOL’s guidance for determining FLSA joint employer status in a variety of different factual situations.

The final rule becomes effective on March 16, 2020.

The final rule is temporarily available here.
(The final rule will be published in the January 16, 2020, Federal Register.)

The news release is available here.

A fact sheet is available here.

Frequently Asked Questions are available here.

Additional information on the final rule is available here.

Aon Publications

Now Available: 2020 Aon Compliance Calendar—Significant Retirement and Health & Welfare Due Dates
Aon publishes its Compliance Calendar to alert plan sponsors and other interested parties of some of the more significant Internal Revenue Service, Department of Labor, and other federal regulatory agency due dates and deadlines for benefit-related compliance obligations. The purpose of this calendar is to help plan sponsors maintain compliance with significant due dates and to avoid costly penalties for noncompliance resulting from missing any key deadlines.

The 2020 Aon Compliance Calendar is available here.

2020 Medicare Part D Disclosure Reminder
This Aon bulletin is a reminder of an annual disclosure requirement applicable to most employers that provide prescription drug coverage to individuals who are Medicare Part D-eligible. This disclosure is not new and should have occurred each year since 2006. The disclosure applies regardless of whether an employer provides retiree prescription drug benefits.

For 2020 calendar year plans, the disclosure must occur no later than February 29, 2020. (Note: February 29, 2020 is a Saturday.) The annual disclosure must occur for any employer that provides prescription drug coverage to anyone who is Medicare Part D-eligible.

The Aon bulletin is available here.
 

Aon Webinars

“Retirement Transformed: New Legislation Including the SECURE Act Creates Opportunities for Retirement Plan Sponsors”
On Wednesday, January 22, 2020, at 11:30 a.m. CT/12:30 p.m. ET, Aon will host a webinar titled Retirement Transformed: New Legislation Including the SECURE Act Creates Opportunities for Retirement Plan Sponsors. Join Aon experts who will actively discuss this new legislation. The webinar will provide insights into the new rules and impact for plan sponsors.

Attendees will be engaged in a host of topics including:
 

Defined contribution (DC) and plan design changes; Safe harbors for DC lifetime income solutions; Non-discrimination testing relief; and "Open" DC multiple employer plans.

Webinar registration is available here.