attributable to Harvey, seek to enforce the normal timing requirements for deposits of salary deferral contributions into a plan's trust with respect to a temporary delay in forwarding such contributions, provided the employer and service provider act reasonably and prudently, and in the best interests of employees, to comply as soon as practicable.

  • Recognizing that participants and beneficiaries may encounter difficulties meeting deadlines for filing benefit claims and COBRA elections, the DOL directs plan fiduciaries to make reasonable accommodations to prevent the loss of benefits and to minimize the possibility of individuals losing benefits because of a failure to comply with applicable deadlines.
  • Noting that full and timely compliance by plans and insurance issuers may not be possible, the DOL's approach to enforcement will emphasize compliance assistance and will include grace periods and other relief where appropriate, including when physical disruption to a plan or provider's place of business makes timely compliance impossible.

It is anticipated that the DOL will issue similar guidance with respect to those affected by Hurricane Irma.

Takeaways

  • Use of the IRS guidance is optional. Plan sponsors, particularly those with substantial employee populations affected by the hurricanes, will need to quickly decide whether to offer some or all of such relief.
  • Sponsors should contact their plan record-keepers to discuss administrative procedures for making relief available.
  • Sponsors wishing to make such relief available should consider distributing an appropriate communication to make affected individuals aware of relief available to them.
  • To the extent a plan sponsor offers relief, its retirement plan must be amended to reflect the relief offered no later than the last day of the plan year beginning after December 31, 2017.
  • Sponsors should discuss with their service providers any procedures to be implemented pursuant to DOL relief guidelines, such as the handling of late COBRA or other notice or election forms by participants.
  • Sponsors should identify any compliance failures as soon as possible so that immediate and reasonable corrective measures can be taken.

Dentons' Pensions, Benefits and Executive Compensation group is ready to assist in your consideration and implementation of this relief, as well as any other hurricane-related relief you may wish to offer to your affected employees.

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