The U.S. Department of Labor has released guidance and relief measures for employee benefit plans, participants, and beneficiaries impacted by Hurricanes Helene and Milton. This announcement acknowledges the difficulties faced by plan participants and their families in meeting deadlines required by job-based retirement, health, and other benefit plans to access benefits.
The department also recognizes that plan sponsors, fiduciaries, employers, and service providers may encounter challenges in fulfilling their obligations under the Employee Retirement Income Security Act (ERISA) while supporting affected individuals. The issued guidance aims to assist benefit plans in addressing the needs of those impacted by these disasters.
Assistant Secretary for Employee Benefits Security Lisa M. Gomez stated, “We must continue to safeguard the benefits of America’s workers and their families while ensuring that employers and other plan sponsors have the flexibility needed to continue delivering benefits during this challenging time.”
In collaboration with the Department of the Treasury and Internal Revenue Service, a joint notice was issued extending certain time frames for participants and beneficiaries regarding healthcare coverage rights. This includes continuation of group health plan coverage under COBRA. The notice also extends deadlines for plan administrators to provide a COBRA election notice. It allows more time for affected individuals to file benefit claims, appeal denied claims, and make crucial decisions about their health coverage and retirement benefits. The notice will be published in the Federal Register.
Additionally, deadlines are extended for plan officials in storm-affected areas to provide benefit statements, annual funding notices, and other ERISA-required documents if they make a good faith effort to issue them as soon as administratively practicable. More details can be found in EBSA Disaster Relief Notice 2024-01 which covers compliance assistance on various ERISA-related issues.
A set of Frequently Asked Questions is also being provided on health and retirement benefit issues for those affected by the storms. This resource aids plan participants, beneficiaries, sponsors, and employers in understanding their rights and responsibilities under ERISA.
As recovery efforts progress, the department will continue monitoring the situation. Affected individuals can reach out to EBSA Benefit Advisors at (866) 444-3272 or visit askebsa.dol.gov for further information.
