The Washington Report

December 6, 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.

Health

 

Departments Publish FAQs about ACA and Consolidated Appropriations Act, 2021 Implementation Part 63; Address 2023 CLAS Guidance and No Surprises Act
On November 28, 2023, the Departments of Labor, Health and Human Services, and the Treasury (Departments) published Frequently Asked Questions (FAQs) regarding implementation of certain provisions of the Affordable Care Act (ACA) and Title I (the No Surprises Act (NSA)) of Division BB of the Consolidated Appropriations Act, 2021. The Public Health Service (PHS) Act Section 2719 and its implementing regulations require non-grandfathered group health plans and health insurance issuers offering non-grandfathered group or individual health insurance coverage to provide certain notices in a culturally and linguistically appropriate manner. PHS Act Section 2715 requires group health plans and health insurance issuers offering group or individual health insurance coverage (including grandfathered health plans) to provide a summary of benefits and coverage and uniform glossary in a culturally and linguistically appropriate manner. Along with the issuance of these FAQs, the Departments also released updated guidance on Culturally and Linguistically Appropriate Services County Data (CLAS County Data). The FAQ on the CLAS County Data is below:

Q1: What information does the 2023 CLAS Guidance include, and when is it effective for plans and issuers?

The second FAQ addresses the NSA. The Texas Medical Association and other plaintiffs brought four Administrative Procedure Act challenges to the rules and guidance implementing the NSA (termed TMA I, II, III and IV). The latest FAQ asks:

Q2: In light of the TMA IV and TMA III opinions and orders, how do the batching requirements of the NSA apply to qualified independent dispute resolution (IDR) items and services for disputes eligible for initiation of the federal IDR process on or after August 3, 2023?

The FAQs about ACA and Consolidated Appropriations Act, 2021 Implementation Part 63 are available here.

The 2023 CLAS County Data is available here.

Retirement

 

PBGC Publishes Final Rule on Allocation of Assets in Single-Employer Plans; Valuation of Benefits and Assets; Expected Retirement Age
On November 28, 2023, the Pension Benefit Guaranty Corporation (PBGC) published a final rule which amends the agency’s regulation on Allocation of Assets in Single-Employer Plans by substituting a new table for determining expected retirement ages for participants in pension plans undergoing distress or involuntary termination with valuation dates falling in 2024. This table is needed to compute the value of early retirement benefits and, thus, the total value of benefits under a plan. The final rule becomes effective on January 1, 2024.

The final rule is available here.

IRS Releases Proposed Rule on Long-Term, Part-Time Employee Rules for Cash or Deferred Arrangements Under Section 401(k)
On November 27, 2023, the Internal Revenue Service (IRS) released a proposed rule that would amend the rules applicable to plans that include cash or deferred arrangements under Section 401(k) to provide guidance with respect to long-term, part-time employees. The proposed rule reflects statutory changes made by the SECURE Act and the SECURE 2.0 Act. The proposed rule would affect participants in, beneficiaries of, employers maintaining, and administrators of plans that include cash or deferred arrangements. Comments on the proposed rule must be received by January 26, 2024. A public hearing has been scheduled for March 15, 2024. Requests to speak and outlines of topics to be discussed at the public hearing must also be received by January 26.

The proposed rule 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 fourth quarter of 2023. In this issue you will find the following articles:

• Affirmative Action Challenged in the U.S.: What It Might Mean for DEI
• Dealing with Illiquid Pension Assets
• Roth High-Paid Catch-Up Rule Catches a Cold
• Plan Fiduciaries: What’s Next for Crypto and 401(k) Plans?
• Ninth Circuit Takes Expansive View of Fiduciary Requirements
• Quarterly Roundup of Other New Developments
• Hot Topics: Recent Aon Publications

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