The Washington Report
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September 14, 2022
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.
Retirement
PBGC Releases FY 2021 Projections Report
On September 9, 2022, the Pension Benefit Guaranty Corporation (PBGC) released its Fiscal Year (FY) 2021 Projections Report. The Single-Employer Insurance Program covers 22.7 million participants, and its financial outlook is also projected to remain on a path of improvement. The report shows an improved financial outlook for the Multiemployer Insurance Program, which covers 10.9 million participants, due to the Special Financial Assistance Program enacted in the American Rescue Plan and favorable plan asset returns in 2021.
According to the PBGC, the FY 2021 Projections Report shows that the Single-Employer Program is “expected to remain strong through 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. While the projections show considerable uncertainty, they also indicate an average FY 2031 net financial position of $53.3 billion, up slightly from last year’s FY 2030 projection of $49.9 billion.”
For additional details, please refer to the actual report.
The news release is available here.
The FY 2021 Projections Report is available here.
Aon Publications
Departments Issue Transparency FAQs Limiting Employer Responsibility for Posting MRF Links
Frequently asked questions (FAQs) issued by the Departments of Labor, Treasury, and Health and Human Services (the Departments) last month narrow an employer’s responsibility for posting links to machine-readable files (MRFs) as part of the Transparency in Coverage requirements of the Affordable Care Act.
While most employers sponsoring self-insured medical plans can rely upon third-party administrators and other service providers to post the MRFs on the plan’s behalf, the Departments’ guidance makes clear that employer plans with a public website must post their own links to MRFs in certain circumstances.
The Departments also have included in the new Part 55 FAQ a minor FAQ on the upcoming internet-based self-service tool for participants. The Centers for Medicare & Medicaid Services updated its list of technical FAQs to clarify that, while there is no requirement for plans to retain copies of the MRFs that are updated monthly, plans are encouraged to retain records to demonstrate compliance.
The Aon bulletin is available here.
Departments Issue Final Regulations and Additional FAQs Regarding the No Surprises Act
On August 26, 2022, the Departments published final regulations under the No Surprises Act (NSA) passed by Congress in late 2020. In addition, on August 19, 2022, the Departments issued guidance on the NSA in FAQs Part 55. These FAQs address a number of questions regarding the application and implementation of the NSA.
This Aon bulletin addresses the following:
- Background;
- Final Regulations Under the NSA;
- FAQ Guidance Under the NSA; and
- Employer Actions.
The Aon bulletin is available here.