A Chronology of COVID-19 Relief for ERISA Plans

by Suzanne E. Meeker on August 10, 2020

This chronology traces the major ongoing relief provided by legislation, regulatory action, and other agency guidance to assist ERISA plan participants, fiduciaries, and sponsors during the ongoing COVID-19 pandemic through August 10, 2020. Superseded agency guidance is not included in the chronology.

Terms/acronyms used:

COVID-19 – Includes statutory and regulatory references to coronavirus, SARS-CoV-2, and pandemic
FSA – Flexible spending account
HDHP – High deductible health plan
Outbreak Period – Begins March 1 and ends 60 days after the declared end of the National Emergency
RMDs – Required minimum distributions

2020 Date	Relief	Significance	Verrill Commentary
March 11	IRS Notice 2020-15	HDHPs may cover testing and treatment for COVID-19 before satisfaction of the deductible or with a deductible below the HDHP minimum	High-Deductible Health Plans can Cover Coronavirus Costs
March 13	Declaration of National Emergency/Stafford Act Declarations of Emergency for All U.S. States, Territories, and Possessions	Stafford Act declarations permit hardship withdrawals from 401(k) and 403(b) plans for the duration of the emergency
March 27	CARES Act – Retirement Plans	– Authorizes time-limited relief for 401(k), 403(b), and governmental 457(b) plan participants directly affected by COVID-19 – Special distributions up to $100,000, with tax relief – Plan loans up to $100,000 or 100% of account balance – Postponed plan loan payments – Waives 2020 RMDs from defined contribution plans – Defined benefit plan sponsors may postpone 2020 required minimum contributions	With CARES Act, Congress Provides Retirement Plan Relief and Group Health Plan Changes
March 27	CARES Act – Group Health Plans	– Mandates coverage of certain medical care to prevent or mitigate COVID-19 and of certain in vitro diagnostic services without cost-sharing or preauthorization – HDHPs may cover telehealth and other remote care before satisfaction of the deductible or with a deductible below the HDHP minimum	With CARES Act, Congress Provides Retirement Plan Relief and Group Health Plan Changes
April 10	PBGC Disaster Relief Announcement	Extended deadlines for premium payments and filings due on or after April 1 to July 15
April 28	DOL Disaster Relief Notice 2020-01	– Relief for retirement plan fiduciaries who cannot meet certain ERISA requirements during the Outbreak Period due to COVID-19 – Good faith failures to timely furnish ERISA notices, disclosures, and other documents, if furnished as soon as administratively practicable – Good faith failures to timely remit participant contributions and loan payments to a plan, if remitted as soon as administratively practicable – Guidance related to granting CARES Act distributions and loans – Guidance on blackout notices, Form 5500 and Form M-1 filing relief, and other general compliance guidance on ERISA fiduciary responsibilities during COVID-19
May 4	DOL/IRS Final Rule: Extension of Certain Timeframes for Employee Benefit Plans, Participants and Beneficiaries Affected by the COVID-19 Outbreak	Extends certain health plan time frames affecting special enrollment and COBRA coverage, as well as claims and appeal deadlines for all ERISA plans, to the end of the Outbreak Period	IRS and DOL Extend Certain Health & Welfare Benefit Plan-Related Deadlines
May 12	IRS Notice 2020-29	– Cafeteria plans may permit mid-year changes to employer-sponsored health coverage, health FSAs, and dependent care assistance programs (including dependent care FSAs) without a status change event – Claims period for health FSAs and dependent care assistance programs extended – Clarifies and expands relief allowing HDHPs to cover expenses related to COVID-19 and telehealth services retroactive to January 1, 2020	IRS Relaxes Rules for Cafeteria Plans and Clarifies Relief for High Deductible Health Plans
May 12	IRS Notice 2020-33	– Limit on carry-over amounts in a health FSA increased to $550 – Clarifies timing for health plan reimbursements	IRS Relaxes Rules for Cafeteria Plans and Clarifies Relief for High Deductible Health Plans
May 27	DOL Final Rule: Default Electronic Disclosure by Employee Pension Benefit Plans under ERISA	New alternative safe harbor for electronic delivery of required disclosures under ERISA Title I	DOL E-Disclosure Rule Recognizes our New (Digital) Reality
June 3	IRS Notice 2020-42	Temporary relief from the physical presence requirement for witnessing certain plan elections during 2020
June 19	IRS Notice 2020-50	Expanded relief and guidance for retirement plan distributions and loans under the CARES Act	IRS Issues New Guidance on Cares Act Retirement Plan Distributions and Loans
June 23	IRS Notice 2020-51	Guidance for waiver of 2020 RMDs under the CARES Act, including eligibility for rollover into a retirement plan or IRA if voluntarily received or received before passage of the CARES Act
June 23	IRS Notice 2020-52	Temporary relief related to certain mid-year changes to safe harbor 401(k) or 401(m) plans that reduce or suspend safe harbor contributions
July 20	PBGC COVID-19-Related Single-Employer Plan Sponsors and Administrators Questions and Answers	Guidance for postponement of required minimum contributions under the CARES Act
July 30	IRS Coronavirus-related Relief for Retirement Plans and IRAs – Questions and Answers, Q15	In general, participants terminated due to the COVID-19 pandemic and rehired in 2020 will not cause a partial plan termination	Employee Layoffs May Vest Retirement Plan Benefits
August 6	IRS Notice 2020-61	Guidance on the special rules relating to funding of single-employer defined benefit plans and related benefit limitations under the CARES Act

Topics: COVID-19

Suzanne E. Meeker

Counsel

Tel: (207) 253 4906

A Chronology of COVID-19 Relief for ERISA Plans

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