The Washington Report

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August 09, 2023

Note to Subscribers

The Washington Report will not be published on August 16, 2023. Look for your next Aon Washington Report on Wednesday, August 23.

Legislative

Congress Adjourns for August Recess
Congress has adjourned for its August recess. The House and Senate are scheduled to reconvene after the Labor Day holiday.

Retirement

PBGC Releases FY 2022 Projections Report
On August 2, 2023, the Pension Benefit Guaranty Corporation (PBGC) released the agency’s Fiscal Year (FY) 2022 Projections Report. According to the PBGC, the report shows a continuing positive outlook for both its Single-Employer and Multiemployer pension insurance programs. The new projections show that the Multiemployer Insurance Program is likely to remain solvent more than 40 years out, due to the 2021 enactment of the Special Financial Assistance Program as part the American Rescue Plan Act. The FY 2022 Projections Report shows that the Single-Employer Program is expected to remain strong throughout the 10-year projected period. Consistent with last year’s report, the projections show no scenarios in which the Single-Employer Program runs out of money within the next 10 years. The projected growth in the net financial position over the upcoming 10-year period is due primarily to expected claims trending lower due to improved plan funding.

The press release is available here.

The FY 2022 Projections Report is available here.

Other HR/Employment

EEOC Issues Proposed Regulations to Implement PWFA
On August 7, 2023, the Equal Employment Opportunity Commission (EEOC) issued proposed regulations to implement the Pregnant Workers Fairness Act (PWFA), which requires a covered entity to provide reasonable accommodations to a qualified employee’s or applicant’s known limitation related to, affected by, or arising out of pregnancy, childbirth, or related medical conditions, unless the accommodation will cause an undue hardship on the operation of the business of the covered entity. The law builds upon existing protections against pregnancy discrimination under Title VII of the Civil Rights Act and access to reasonable accommodations under the Americans with Disabilities Act. The proposed regulations explain how the EEOC proposes to “interpret the PWFA and certain terms in the statute, such as ‘temporary,’ ‘essential functions,’ and ‘communicated to the employer.’ It also provides numerous examples of possible reasonable accommodations and seeks input on whether there should be more examples and for what additional different situations. In addition, the EEOC solicits information and comment on particular issues, including existing data quantifying the proportion of pregnant workers who need workplace accommodations, and existing data on the average cost of pregnancy-related accommodations.” Comments on the proposed regulations are due by October 10, 2023.

The PWFA was signed into law on December 29, 2022. The EEOC enforces the PWFA and began accepting charges on June 27, 2023, the day the law became effective. The PWFA requires the EEOC to issue regulations to implement the law by December 29, 2023.

The news release is available here.

The proposed regulations are available here.

Aon Publications

Departments Propose New Regulations on Mental Health Parity Testing
The Departments of Labor, Treasury, and Health and Human Services (the Departments) released proposed regulations on the nonquantitative treatment limit (NQTL) requirements of the Paul Wellstone and Pete Domenici Mental Health Parity and Addiction Equity Act of 2008 (MHPAEA).

These proposed regulations implement new requirements and clarify existing requirements for group health plans to comply and demonstrate compliance with the NQTL provisions of MHPAEA. If finalized, the regulations would be effective for plan years beginning on or after January 1, 2025. The Departments are requesting comments on these proposed regulations.

The Departments also issued a technical release requesting comments on proposed data requirements for plans to demonstrate that their mental health and substance use disorder provider networks meet MHPAEA standards.