The Washington Report

September 18, 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.

Other HR/Employment

 

EBSA Publishes Compliance Assistance Release No. 2024-01; Updating Cybersecurity Guidance for Employee Benefit Plans
On September 6, 2024, the Department of Labor’s Employee Benefits Security Administration (EBSA) published Compliance Assistance Release No. 2024-01, which updates current cybersecurity guidance and confirms that it applies to all types of plans governed by ERISA, including health and welfare plans, and all employee retirement benefit plans. The new Compliance Assistance provides best practices in cybersecurity for plan sponsors, plan fiduciaries, recordkeepers, and plan participants. The release updates EBSA’s 2021 guidance and includes the following:

• Tips for Hiring a Service Provider: Helps plan sponsors and fiduciaries select a service provider with strong cybersecurity practices and monitor their activities.
• Cybersecurity Program Best Practices: Assists plan fiduciaries and recordkeepers in mitigating risks.
• Online Security Tips: Offers plan participants who check their online retirement accounts with rules for reducing the risk of fraud and loss.

The guidance complements EBSA’s regulations on electronic records and disclosures to plan participants and beneficiaries. These include provisions on ensuring that electronic recordkeeping systems have reasonable controls, adequate records management practices are in place, and that electronic disclosure systems include measures calculated to protect Personally Identifiable Information.

Please refer to the updated guidance for specific details.

The news release is available here.

Compliance Assistance Release No. 2024-01, is available here.

Aon Publications

 

IRS Announces 2025 Affordability Percentage for ACA Employer Mandate
On September 6, 2024, the Internal Revenue Service (IRS) announced that the required contribution percentage (RCP) used by employers for complying with the Affordable Care Act’s (ACA’s) employer mandate will be 9.02 percent for plan years beginning in calendar year 2025. This is an increase from the 2024 RCP, which was 8.39 percent.

The Aon bulletin is available here.