The U.S. Departments of Labor and Treasury have extended ERISA-related deadlines due to Hurricane Helene and Tropical Storm Helene. The guidance includes the EBSA Disaster Relief Notice 2024-01 and a Final Rule suspending participant deadlines for COBRA and HIPAA. This relief applies to disaster areas in several states, particularly from late September 2024 through May 1, 2025, ensuring compliance and support for those impacted.
On November 8, the U.S. Departments of Labor and Treasury announced an extension of certain deadlines associated with retirement, health, and welfare plans due to the impacts of Hurricane Helene, Tropical Storm Helene, and Hurricane Milton. Subsequent guidance was also provided by the Department of Health and Human Services (HHS). The major announcements included three formal documents: the EBSA Disaster Relief Notice 2024-01, the Final Regulations, and a set of FAQs aimed at assisting participants affected by the disasters.
The EBSA Disaster Relief Notice extends the deadlines for ERISA-mandated notifications and requires plans to demonstrate a good faith effort in providing necessary documents in a timely manner. Notably, the Final Rule suspends various COBRA and HIPAA deadlines, offering relief to both participants and plan administrators. This guidance applies to areas in Florida, Georgia, North Carolina, South Carolina, Virginia, and Tennessee that were declared disaster areas, primarily covering periods from late September to May 1, 2025.
The guidance clarifies that the Department of Labor is exercising its authority under ERISA section 518 to adopt these extensions due to a Presidentially-declared disaster. This document also emphasizes that as long as notifications are provided as promptly as feasible, plans will remain compliant with ERISA requirements. Moreover, participants will not face penalties for late submissions of COBRA elections, health plan enrollments, or claims during this designated Disaster Period.
The extension of ERISA-related deadlines by the DOL and Treasury follows the devastating effects of Hurricane Helene and related storms, which significantly impacted various regions. The Department of Labor has previously utilized its authority under ERISA section 518 to delay compliance deadlines in response to catastrophic events, establishing a precedent for managing similar situations. This recent guidance reflects a continued commitment to support individuals and employers navigating the challenges post-disaster, ensuring that affected parties retain access to critical health and retirement benefits.
In summary, the recent guidance from the Departments of Labor and Treasury provides essential relief for participants affected by Hurricane Helene and Tropical Storm Helene. By extending compliance deadlines and offering clarifications on plan responsibilities, the Departments aim to ease the burdens caused by these natural disasters. Stakeholders in disaster-affected areas should carefully review these provisions to ensure they understand their rights and obligations under this updated framework.
Original Source: www.jdsupra.com
