EBIA Weekly Newsletter

Transit Plan May Require Use of Debit Card Even If Cash Reimbursement Is Permissible 


   March 2, 2017

Information Letter 2016-0085 (Oct. 5, 2016) Available at https://www.irs.gov/pub/irs-wd/16-0085.pdf The IRS has released an information letter about a qualified transportation plan that discontinued cash reimbursement of transit expenses and began requiring that those expenses be paid using an electronic debit card. As the letter explains, qualified transit plans are permitted to offer cash … Read More


CMS Extends Through 2018 Transition Policy Allowing Renewal of Individual and Small Group Noncompliant Policies


   March 2, 2017

Insurance Standards Bulletin Series—INFORMATION—Extension of Transitional Policy through Calendar Year 2018 (Feb. 23, 2017) Available at https://www.cms.gov/CCIIO/Resources/Regulations-and-Guidance/Downloads/Extension-Transitional-Policy-CY2018.pdf CMS has issued a bulletin announcing another extension of the transition policy allowing states to permit insurers in the individual and small group markets to renew health insurance policies they would otherwise have to cancel due … Read More


Reinsurance Contribution Requirement Applies Equally to State, Local Government, and Private Employers


   March 2, 2017

Ohio v. United States, 2017 WL 656276 (6th Cir. 2017) Available at http://www.opn.ca6.uscourts.gov/opinions.pdf/17a0040p-06.pdf The Sixth Circuit has dismissed a state’s lawsuit challenging mandatory payments by state and local government employers under health care reform’s transitional reinsurance program. As background, the temporary reinsurance program required insurers and self-insured group health plans providing major medical … Read More


DOL Proposes to Delay Fiduciary Rule and Related Exemptions to June 9; Requests Comments on Delay and Possible Rule Changes


   March 2, 2017

Definition of the Term “Fiduciary”; Conflict of Interest Rule – Retirement Investment Advice; Best Interest Contract Exemption (Prohibited Transaction Exemption 2016-01); and others; 82 Fed. Reg. 12319 (Mar. 2, 2017); DOL News Release 17-0293-NAT (Mar. 1, 2017) Proposed Regulation News Release The DOL has released a proposed regulation that would delay … Read More


IRS Issues 2016–2017 Operational Compliance List for Qualified Retirement Plans


   March 2, 2017

Available at https://www.irs.gov/retirement-plans/operational-compliance-list In Revenue Procedure 2016-37, the IRS set forth new remedial amendment and determination letter submission rules to replace the staggered five-year remedial amendment cycles for individually designed retirement plans, including individually designed 401(k) plans (see our Checkpoint article). The new rules, effective January 1, 2017, … Read More