DOL and IRS Provide Hurricane Relief Guidance
The Department of Labor (DOL), in partnership with the Internal Revenue Service (IRS), released a statement in November detailing disaster relief measures for employee benefit plans, participants and sponsors affected by Hurricane Helene, Tropical Storm Helene and Hurricane Milton. While the guidance applies broadly to health, welfare and retirement plans, the following provisions are specifically relevant to retirement plan sponsors and participants.
Relief for Retirement Plan Sponsors
The relief measures introduced by the DOL and IRS aim to ease compliance burdens, offering flexibility and guidance to help sponsors maintain operations and support participants during this challenging time.
Extended deadlines for ERISA compliance. Sponsors are granted additional time to provide required documents, such as benefit statements, annual funding notices and other ERISA disclosures. The Relief Period, which varies by state and FEMA designation, gives sponsors flexibility to comply as soon as administratively practicable while ensuring participants remain informed.
Filing extensions for required forms. Filing deadlines for critical documents such as Form 5500 and Form M-1 are extended, providing relief for sponsors managing disruptions caused by the disasters. This extension helps sponsors meet ERISA and Internal Revenue Code requirements without penalties.
Guidance on plan loans and participant contributions. Sponsors who face challenges in managing participant loans and contributions can rely on compliance assistance outlined in the EBSA Disaster Relief Notice. This guidance ensures participant accounts are accurately managed, provided sponsors document their efforts and act in good faith.
Access to FAQs for practical support. Sponsors can consult detailed FAQs issued by the DOL for practical guidance on implementing the relief measures, understanding compliance obligations and addressing challenges during the Relief Period.
Relief for Retirement Plan Participants
The DOL and IRS guidance includes provisions designed to give participants the time and resources needed to safeguard their retirement savings while managing the personal impact of these emergencies.
Extended deadlines for claims and appeals. Participants have additional time to file benefit claims and appeal adverse determinations. The Relief Period, excluded from these deadlines, helps ensure participants do not lose access to retirement benefits due to disaster-related delays.
Flexibility for loan repayments. Participants affected by the disasters can benefit from leniency in meeting plan loan repayment deadlines during the Relief Period, protecting them from penalties caused by unavoidable delays.
FAQs to support participants. The DOL’s FAQs provide participants with clear guidance on their rights, adjusted deadlines and available relief measures to help them navigate challenges during the disaster recovery period.
Additional Information
These relief measures aim to balance the needs of sponsors and participants, ensuring continued access to retirement benefits while addressing compliance challenges posed by Hurricanes Helene and Milton. While this article highlights key aspects of the guidance it does not encompass all details or provisions. For additional information about the plans and participants that qualify, the relief periods, relief measures and their application, can be found in EBSA Disaster Relief Notice 2024-01.
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