The Washington Report

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November 16, 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.

Health

IRS Releases Adjusted Applicable Dollar Amount Determining PCORTF Fee
On November 14, 2022, the Internal Revenue Service (IRS) released Notice 2022-59, which provides that the adjusted applicable dollar amount that applies for determining the Patient-Centered Outcomes Research Trust Fund (PCORTF) fee (also referred to as the “Patient-Centered Outcomes Research Institute (PCORI)” fee) for policy years and plan years ending on or after October 1, 2022, and before October 1, 2023, is $3.00. This amount has been determined by the Treasury using the percentage increase in the projected per capita amount of National Health Expenditures published by the Department of Health and Human Services in March 2022 and the adjustment, as determined by Treasury, for year-to-year variations. Sections 4375 and 4376 impose a fee on issuers of specified health insurance policies and plan sponsors of applicable self-insured health plans to help fund the PCORTF. (Notice 2022-04 provided that the adjusted applicable dollar amount for policy years and plan years ending on or after October 1, 2021, and before October 1, 2022, was $2.79.)

For additional information, please see the Aon bulletin entitled IRS Announces Increased PCORI Fee in the Publications section of the newsletter.

IRS Notice 2022-59 is available here.

Retirement

2023 Comprehensive Premium Filing Instructions Available From PBGC
On November 10, 2022, the Pension Benefit Guaranty Corporation (PBGC) announced that the Comprehensive Premium Filing Instructions for 2023 Plan Years have been approved by the Office of Management and Budget and are now available on the PBGC's website. The PBGC stated that there are no significant changes from last year’s premium instructions. My PAA will be ready to accept 2023 premium filings on January 9, 2023.

The Comprehensive Premium Filing Instructions for 2023 Plan Years are available here.

PBGC Extends Comment Period for Proposed Rule on Actuarial Assumptions for Determining Withdrawal Liability
On November 9, 2022, the PBGC published a Notice extending the comment period for a proposed rule that would provide interest rate assumptions that may be used by a plan actuary in determining a withdrawing employer’s liability to a multiemployer plan. The proposed rule was published in the Federal Register on October 14, 2022, with a 30-day public comment period. The PBGC is extending the comment period for the proposed rule to December 13, 2022.

The Notice of Extension is available here.

The October 14, 2022, proposed rule is available here.

IRS Releases Revenue Procedure Expanding Program for 403(b) Retirement Plan Submissions
On November 7, 2022, the Internal Revenue Service (IRS) released Revenue Procedure 2022-40, modifying Revenue Procedure 2016-37, which, in part, provides the circumstances under which a plan sponsor may submit a determination letter application to the IRS with respect to a qualified individually designed plan, to permit the submission of determination letter applications for Section 403(b) individually designed plans. Among other provisions, Revenue Procedure 2022-40 also modifies the circumstances under which a plan is considered to have been issued an initial plan determination and modifies the scope of review of qualified individually designed plans submitted under the determination letter program.

Revenue Procedure 2022-40 is available here.

Revenue Procedure 2016-37 is available here.

Other HR/Employment

EEOC and Federal Agency Partners Publish Resource Document for Military Service Members and Veterans Facing Employment Discrimination
On November 10, 2022, the Equal Employment Opportunity Commission (EEOC) released a resource document entitled Protections Against Employment Discrimination for Service Members and Veterans, describing federal protections from unlawful employment discrimination against service members and veterans. The document, jointly authored by the EEOC, the Department of Labor Office of Federal Contract Compliance Programs, the Department of Labor Veterans’ Employment and Training Service, and the Department of Justice Civil Rights Division, details federal laws and other authorities that provide workplace protections specific to service members and veterans. The publication is designed to help veterans and service members determine which laws and federal agencies are responsible for enforcing their workplace rights and where to seek assistance if they believe those rights have been violated.

The news release is available here.

The Protections Against Employment Discrimination for Service Members and Veterans document is available here.

Aon Publications

IRS Clarifies Earlier Guidance on New Cafeteria Plan Change in Status Rule for Exchange Eligibility
The Internal Revenue Service (IRS) recently amended its cafeteria plan election change guidance under Notice 2022-41 to clarify that the new rule also applies to all cafeteria plans, including calendar year cafeteria plans.

The Aon bulletin is available here.

IRS Announces Increased PCORI Fee
On November 14, 2022, the IRS issued Notice 2022-59 announcing the applicable Patient-Centered Outcomes Research Institute (PCORI) fee for plan years that end on or after October 1, 2022, and before October 1, 2023 (e.g., the applicable PCORI fee for 2022 calendar year plans).