Covid-19 | Employer Resources

Department of Labor update

On February 26, 2021, the US Department of Labor (DOL) released Employee Benefits Security Administration (EBSA) Disaster Relief Notice 2021-01 providing further guidance with respect to certain plan deadlines occurring during the COVID-19 National Emergency period.

In coordination with the Department of Health and Human Services and the Internal Revenue Service, the DOL interprets the one-year maximum period is to be applied on a person-by-person basis. In short, the one-year period is calculated with respect to each member's specific expiration date.

As the DOL previously stated, the guiding principle is to act in the best interest of members and their families. Although they did not impose a mandated notification requirement, they ask that plan administrators consider sending a notice regarding the end of the one-year period to each member based on the member's specific expiration date.

We have provided example scenarios in the Compliance Alert that demonstrate the guidance provided by the DOL. We encourage you to review each scenario to determine the impact on your specific plan(s).