Since the start of the COVID-19 pandemic, we have gotten daily calls and emails from our clients asking how furloughs, layoffs, the CARES Act, and a host of other pandemic-related changes affect the benefit plans that they offer to their employees. Those conversations inevitably lead to the question, “Do we need a plan amendment for that?” This article outlines some of the top questions we are receiving in the health and welfare and retirement plan area relating to the need for plan amendments. While the answer is often “it depends,” at a minimum, this article will help you – plan sponsor – determine what information is needed to decide whether a plan amendment is required.
Also, as long as we are talking about plan amendments, let’s not forget that qualified retirement plans (401(k) and pension) will need amendments to comply with the SECURE Act (e.g., required minimum distributions beginning at age 72 instead of 70 ½, part-time employee participation). The deadline is the last day of the first plan year beginning on or after January 1, 2022, unless extended. For more information, click here.
Foley has created a multi-disciplinary and multi-jurisdictional team, which has prepared a wealth of topical client resources and is prepared to help our clients meet the legal and business challenges that the coronavirus outbreak is creating for stakeholders across a range of industries. Click here for Foley’s Coronavirus Resource Center to stay apprised of relevant developments, insights and resources to support your business during this challenging time. To receive this content directly in your inbox, click here and submit the form.
|As part of Foley’s ongoing commitment to provide legal insight to our clients and colleagues, our Employee Benefits and Executive Compensation Group has a monthly newsletter we call “Employee Benefits Insights,” where we provide you with updates on the most recent and pressing matters concerning employee benefits and other related topics. Click here or click the button to the left to subscribe.|