Legal Update: IRS Implementation Guidance on Qualified Student Loan Payment Match Programs
On Aug. 19, 2024, the IRS issued Notice 2024-63, providing interim guidance for sponsors of 401(k) and similar retirement plans that provide or wish to provide matching contributions based on qualified student loan payments (QSLPs) madeby their participating employees.
News Brief: IFEBP Report: Employers Project 8% Increase Health Costs in 2025
According to a recent survey of employers by the International Foundation of Employee Benefit Plans (IFEBP), U.S. employers estimate a median 8% increase in health care costs for 2025. Catastrophic health claims and rising specialty prescription drug prices drive the projected increase. The latest findings are greater than those of the past two annual surveys, which both projected a 7% rise in health care costs.
HR Compliance Bulletin: Recent and Upcoming U.S. Supreme Court Cases Employers Should Monitor
In its 2023-24 term, the U.S. Supreme Court issued several consequential decisions that will likely have a significant impact on employers. These cases involved federal agency power, discrimination until Title VII of the Civil Rights Act (Title VII), whistleblower retaliation and arbitration. The Supreme Court’s
next term, which starts Oct. 7, 2024, will also decide cases that will impact the workplace.
Click here to view and download the latest HR Compliance Overview
News Brief: Inflation Rate Slows to 2.9% in July
The U.S. Bureau of Labor Statistics (BLS) reported that the consumer price index (CPI) rose 2.9% year over year in July, down from 3% in June. This is the first time the monthly reading has dipped below 3% since March 2021, an additional sign that the inflated pressures are waning and that the Federal Reserve (Fed) may start cutting interest rates.
“Federal Reserve officials have reason to be increasingly concerned about softening of the job market, the other part of its dual mandate of stable prices and maximum employment.”
-Mark Hamrick, Bankrate senior economic analyst
Compliance Bulletin – SAR Is Due by Sept. 30 for Calendar Year Plans
Many employers that must file Form 5500 on behalf of their employee benefit plans must also provide plan participants with a summary annual report (SAR). The SAR is a summary of the information included in the Form 5500.
Employers with plans that operate on a calendar year basis must provide the SAR by
Sept. 30, 2024. However, if the employer received an extension of time to file its Form 5500, the deadline for providing the SAR is Dec. 15, 2024.
The SAR requirement only applies to plans that must file a Form 5500. Also, self-insured welfare plans, regardless of size, are not required to provide a SAR if they are unfunded.
The DOL has released a model SAR relating to welfare plans for plan years beginning in 2023 and later. Acceptable delivery methods for the SAR include U.S. mail, in-hand delivery and electronic delivery, if certain requirements are satisfied.
In the Loop – August
The Impact of SCOTUS Overruling Chevron Deference
On June 28, 2024, the U.S. Supreme Court issued a decision in Loper Bright Enterprises v. Raimondo
and Relentless Inc. v. Department of Commerce. The Court overruled its 1984 decision in Chevron, U.S.A. Inc. v. Natural Resources Defense Council Inc., which held that courts should defer to federal agencies to interpret ambiguities and gaps in the laws that the agencies implement (known as Chevron deference). Congress has the authority to pass laws that govern employers, and federal agencies have the authority to enforce those laws. To fill in any gaps or to remedy ambiguities, federal agencies may issue more detailed guidance on how the laws should be interpreted and applied.
News Brief: White House Announces Results of Medicare Drug Price Negotiations
On Aug. 15, the Biden administration announced that the Department of Health and Human Services (HHS) reachedagreements with top drugmakers to lower prices for the first 10 drugs subject to Medicare price negotiations. After months of negotiation beginning last October, the agreed-upon drug discounts range between 38% and 79%. The new pricing for Medicare Part D enrollees goes into effect on Jan. 1, 2026.
The Peterson-Kaiser Health System Tracker found that 3.4 million employees, in addition to Medicare recipients, used at least 1 of the 10 newly negotiated drugs.
Legal Update: Increased Civil Penalty Amounts for SBC, MSP, HIPAA Violations
On Aug. 8, 2024, the U.S. Department of Health and Human Services (HHS) published a
final rule increasing key penalties affecting group health plans. HHS adjusts these penalty amounts for inflation each year to improve their effectiveness and maintain their deterrent effect. Because these penalties are substantial, employers with group health plans should periodically review their benefit plan administration protocols to ensure full compliance.
Think Well, Be Well: Mental Health Benefits of Outdoor Activities
While planning outdoor activities to improve your mental health may sound simple, the hustle and bustle of daily life can make it difficult to budget time for nature walks and similar outings. However, finding the time is crucial, as the simple act of stepping outside can have profound mental health benefits..
Outdoor activities contribute to our overall health, which in turn positively impacts our mental well-being. One study found that people who spent at least 120 minutes per week in natural environments reported a significant boost in health and well-being.
News Brief: Job Openings Dropped Slightly in June
The Bureau of Labor Statistics (BLS) recently released its June Job Openings and Labor Turnover Summary. The report revealed that there were 8.18 million job openings in June, a decrease from 8.23 million in May. This is a total decrease of 941,000 over the year. The job openings rate held at 4.9% in June.
“Labor demand remains concentrated in just a few industries,workers are hunkering down and feeling less confident about job availability, and businesses are more reluctant to bring on new hires.”
–Wells Fargo economists Sarah House and Aubrey George
Client and Employee Resources
The more your employees understand your benefit plans the more they become educated, empowered consumers. The programs you provide will also gain an enhanced value.
As your strategic partners in employee benefits, we can provide multiple avenues of ongoing support, including:
- Employee Meetings (English and Spanish)
- Webcasts
- Payroll Stuffers
- Poster Campaigns
- Newsletters
Carrier Directories
E-Verify is a web-based system that allows enrolled employers to confirm the eligibility of their employees to work in the United States. Click the image below to begin.
