the erisa industry committee
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The ERISA Industry Committee. Washington Update: December 5, 2011 . Participation Procedure . Procedure for audience participation Audience will be in a “listen-only” mode If you wish to ask a question or make a comment, press *6 on your telephone to “un-mute” your telephone - PowerPoint PPT PresentationTRANSCRIPT
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The ERISA Industry Committee
Washington Update:December 5, 2011
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Participation Procedure
• Procedure for audience participation• Audience will be in a “listen-only” mode• If you wish to ask a question or make a
comment, press *6 on your telephone to “un-mute” your telephone
• After speaking, please press *6 again to re-enter “listen-only” mode
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Washington Update Agenda• Welcoming Remarks• Retirement Update• Health Update• Concluding Remarks/Questions
Retirement – Legislative Update
• Demise of Super Committee (11/12/11)• Next Steps/Pressing Congressional Business
– Extension of Payroll Tax Holiday (with extension to employers)
– Extension of Unemployment Benefits– “Doc Fix”– “AMT” Issues
Retirement – Legislative Update, cont.
2012-2013 Issues• Expiration of Bush Tax Cuts• Deficit Commission Failure & Effect• Defined Contribution Plans & Tax Reform• Tax Reform (“Sense of Congress” Resolution)
Retirement – Legislative Update, cont.
ERIC LOBBYING ACTIVITIES
• PBGC Premium Proposal• Pension Funding Proposal• Hybrid Plan Lobby Campaign Update
Retirement – Regulatory Update Department of Labor
– Definition of Fiduciary Regulations to undergo additional economic analysis – most likely to come out in early 2012 (96-1 likely to be amended)
– Service provider final disclosure regulations (under 408(b)(2)) still at OMB (at OMB for Paperwork Reduction Act review)
– Participant fee disclosure regulations – expected first quarter 2012
Retirement – Regulatory Update, cont.
• DOL Investment Advice Final regulations under PPA issued – ERIC member survey results
• Lifetime Income Disclosure & Benefits Statement Project • ERIC/PSCA held joint conference call on 11/15/11• ERIC/PSCA to meet with DOL on 12/8/11
Retirement – Regulatory Update IRS & Treasury
- IRS/Treasury lifetime income guidance– Treasury guidance to be first out of gate “soon”
to be followed by DOL & Treasury joint guidance
- ERIC & PSCA to schedule meeting with Treasury & IRS on this issue
Health: Budget Control Act of 2011
• Part Two: debt ceiling increased $1.2T - $1.5T– Super Committee charged with achieving $1.5T debt
reduction • Unable to agree on a package
– Thus: sequestration • $1.2T in cuts > FY 2013 - FY 2021 go
automatically into effect– Effective January 2, 2013
• Cuts divided equally between defense and non-defense
Health: Impact of sequestration
• Exempt from cuts: Medicaid and social security– OK to cut Medicare, but not more than 2%, and
may only apply to provider payments • Medicare cuts expected to approach $123B
– Also exempt: CHIP, Part D low-income subsidies, Catastrophic coverage subsidies, ACA premium subsidies
SCOTUS and the ACA• SCOTUS will consider ACA constitutionality
– Oral arguments this spring– Decision probable late June
• Key issues – Individual mandate – heart of the case– Severability– Impact of the AIA– Medicaid expansion
• Circuit Courts split over constitutionality– Two favorable, one against, one no standing
Health legislative update:CLASS Act
• HHS Secretary Sebelius “suspends” implementation of CLASS Act– LTC program under the ACA – “…we have not identified a way to make CLASS work
at this time.” • Several hearings in House• Bills introduced in both House and Senate to
repeal– Congressional passage unlikely
Amendments to SF HCSO• San Francisco Health Care Security Ordinance
requires medium/large employers to pay for employee health care– One mechanism: HRA
• HCSO amends rules on use of HRAs– 24 months to use contributions – Rollover of year-end 2011 balances– New reporting requirements
• ERISA preemption implications?• FocusOn call 12/7
Health: regulatory guidance
• Uniform summary of benefits and coverage – New rules not applicable until issuance of final
regulations• Mental health parity
– Guidance on applying parity to “nonquantitative treatment limitations”
Meetings with regulators
• OMB– Use of Medicare claims data
• EEOC– Wellness madness
New initiative: ERIC Wellness Coalition
• First conference call: Wednesday, 11/9 • Initial task: address regulatory challenges
under GINA, ADA, HIPAA, and (presumably) ACA
• Results of informal survey• To join coalition: email [email protected]
FocusOn calls • Completed:
– Wellness (11/9)– ERRP (11/15)– Health care reform task force (12/1)
• Upcoming:– SF HCSO (12/7)– HRAs under the ACA (12/8)– Reporting health care costs on the W-2 (12/13)– Health care reform task force (1/5/12)– Impact of same-sex marriages (TBD)
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Upcoming ERIC meetings
• Next Washington Update call: 1/9/12• ERIC Membership and Health
Policy/Retirement Security Committee meetings: March 14 and 15, 2012
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To receive ERIC updates
• If you would like to receive your own copy of our emails and notifications of future updates, please let us know by writing to Adrienne Cooper at ERIC ([email protected].) In this email, please include your contact information or signature block, and please indicate whether you wish to receive information on retirement issues, health issues, or both.
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For further information
• Kathryn Ricard, Senior Vice President, Retirement Security – [email protected]
• Gretchen Young, Senior Vice President, Health Policy– [email protected]
• ERIC: 202/789-1400