The Washington Report

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August 23, 2023

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.

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.

Health

Departments Issue FAQs on Administrative Fees for IDR Process Under No Surprises Act
On August 11, 2023, the Departments of Health and Human Services, Labor, and the Treasury (Departments) issued frequently asked questions (FAQs) pertaining to the administrative fee for the independent dispute resolution (IDR) process under the No Surprises Act. More specifically, the FAQs address how the Departments will handle the administrative fee in accordance with an opinion and order issued by the U.S. District Court for the Eastern District of Texas on August 3, 2023, in Texas Medical Association v. United States Department of Health and Human Services.

The FAQs are available here.

Retirement

PBGC Releases Proposed Rule on Valuation Assumptions and Methods
On August 17, 2023, the Pension Benefit Guaranty Corporation (PBGC) released a proposed rule amending its regulation on allocation of assets in single-employer plans to update the interest, mortality, and expense assumptions used to determine the present value of benefits for a single-employer pension plan ending in a distress or involuntary termination. The assumptions are also used for certain multiemployer withdrawal liability calculations and for other purposes. A white paper providing additional information on the methodology being proposed to determine the interest assumption is also available. Comments on the proposed rule are due by October 17, 2023.

The proposed rule is available here.

The PBGC white paper is available here.

EBSA Issues RFI on Reporting and Disclosure Requirements Under SECURE 2.0
On August 10, 2023, the Employee Benefits Security Administration (EBSA) of the Department of Labor published a request for information (RFI) on reporting and disclosure provisions under SECURE 2.0. The purpose of the RFI is to solicit public feedback on 31 questions on the requirements, including questions on:

Pooled employer plans;
Emergency savings accounts that are linked to individual account plans;
Performance benchmarks for asset allocation funds;
Plan fee disclosure improvements for defined contribution plans;
Eliminating unnecessary plan requirements related to unenrolled participants; and
A new requirement to provide paper statements in certain cases.

Comments must be received by October 10, 2023.

The RFI is available here.

Aon Publications

Now Available: Legal Consulting & Compliance Quarterly Update
The Retirement Legal Consulting & Compliance practice is pleased to present its Quarterly Update of recent legal developments for the third quarter of 2023. In this issue you will find the following articles:

Finally! A (Partial) Solution for Stranded 401(h) Account Assets
Seventh Circuit Reconsiders Prior Hughes Decision
Courts Again Underscore Importance of Strong Plan Governance
Missing Money? Try the Retirement Plan Lost & Found!
Interim Guidance on SECURE 2.0’s Expansion of EPCRS
Quarterly Roundup of Other New Developments
Recent Publications

The third quarter 2023 issue of the Retirement Legal Consulting & Compliance Aon Quarterly Update is available here.

Tenth Circuit Holds ERISA Preempts Parts of Oklahoma Law Regulating PBMs
On August 15, 2023, the U.S. Court of Appeals for the Tenth Circuit ruled in Pharmaceutical Care Management Association v. Mulready, Insurance Commissioner of Oklahoma (PCMA v. Mulready) that ERISA preempts various provisions of an Oklahoma law regulating employer-sponsored prescription drug plans. This decision permits ERISA-governed self-insured group health plans in the Tenth Circuit to administer a national system of plan administration and use pharmacy benefit manager (PBM) tools to potentially drive down costs.