The Washington Report
February 14, 2024
Note to Subscribers
While we do our best to provide timely updates, it is possible that the information shared in the newsletter may change after our publication deadline.
Health
IRS Releases Revenue Procedure on Adjusted Dollar Amounts Under Section 4980H for Calendar Year 2025
On February 12, 2024, the Internal Revenue Service (IRS) released Revenue Procedure 2024-14, which provides indexing adjustments for the applicable dollar amounts under Section 4980H(c)(1) and (b)(1) of the Internal Revenue Code. These indexed amounts are used to calculate the employer shared responsibility payments under Sections 4980H(a) and (b)(1). Under Section 4980H(c)(5), in the case of any calendar year after 2014, the applicable dollar amounts of $2,000 and $3,000 under Sections 4980H(c)(1) and (b)(1) are increased by an amount equal to the product of such dollar amount and the premium adjustment percentage (as defined in Section 1302(c)(4) of the Patient Protection and Affordable Care Act) for the calendar year. The Department of Health and Human Services (HHS) published the premium adjustment percentage for 2025 on November 15, 2023, using the most recent National Health Expenditure Accounts (NHEA) income and premium data that was available at the time of publication. For calculation of the 2025 benefit year payment parameters, HHS used the NHEA Projections 2022-2031, the data source that reflected the most recent projections available. For calendar year 2025, the adjusted $2,000 amount under Section 4980H(c)(1) is $2,900, and the adjusted $3,000 amount under Section 4980H(b)(1) is $4,350. Revenue Procedure 2024-14 is effective for taxable years and plan years beginning after December 31, 2024.
IRS Revenue Procedure 2024-14 is available here.
Retirement
2021 Pension Insurance Data Tables Installment Now Available
On February 12, 2024, the Pension Benefit Guaranty Corporation (PBGC) announced that the 2021 Pension Insurance Data Tables Installment is now available. The tables summarize information on the PBGC’s single-employer and multiemployer insurance programs and the defined benefit pension system, which includes time-series data on the PBGC’s finances and operations. The data on PBGC-insured defined benefit plans includes information on the number of plan participants, plan funded status, hybrid plans, frozen plans, and risk transfer activity. Additional information was added this year regarding Special Financial Assistance payments.
The 2021 Pension Insurance Data Tables Installment is available here.