Are Outbreak Period Extensions Over?
Feb 24, 2021
Update Friday, February 26, 2021: We now have guidance via EBSA Disaster Relief Notice that Outbreak Period extensions will continue until the earlier of:
We鈥檒l publish a more detailed alert soon, but this effectively means each person will be given up to 1 year of an Outbreak Period extension on an individual circumstance basis, and since an end to the National Emergency has not been announced, this relief will continue to be available per individual circumstance.聽 Here are some examples:
The May 4, 2020, which announced Outbreak Period extensions for several benefit plan deadlines as of March 1, 2020, may be coming to a close one year later on February 28, 2021. IMA鈥檚 previous articles reviewed the deadlines which have been on pause since March 1, 2020, but a brief recap is below:
The intent was for the Outbreak Period to delay these deadlines until 60 days after the President鈥檚 announced end of the national emergency, 鈥渟ubject to the statutory duration limitation in ERISA section 518 and Code section 7508A鈥 (which say such extensions may be 鈥渁 period of up to one year鈥), followed by a statement that 鈥渢he Agencies will continue to monitor the effects of the Outbreak and may provide additional relief as warranted.鈥
We have heard the Agencies are in active discussions on this topic since the President has not announced an end date for the national emergency, but they have yet to publish any additional guidance on this issue.聽 Without their active intervention, it would appear the Outbreak Period extensions come to a close Sunday, February 28, 2021, without a 60-day heads-up period.
Unless regulators announce additional guidance by Friday, February 26, 2021, it would be wise for employers to consider postmarking the following communications as soon as possible:
IMA will continue to monitor regulator guidance and offer meaningful, practical, timely information.
This material should not be considered as a substitute for legal, tax and/or actuarial advice. Contact the appropriate professional counsel for such matters. These materials are not exhaustive and are subject to possible changes in applicable laws, rules, and regulations and their interpretations.