NRECA Employee Benefits Weekly

Plan Timelines Extended for Co-ops and Participants Affected by COVID-19

Posted on Posted in All Benefits, Compliance

The Employee Benefits Security Administration (EBSA), U.S. Department of Labor (DOL), and Internal Revenue Service (IRS) have extended certain benefit plan-related deadlines for employers and participants due to COVID-19.

Full details about all extensions are posted on the COVID-19 page of the Employee Benefits website.

By July 1, 2020, NRECA will issue a summary of material modifications (SMMs) for the Group Benefits Program plan and for the NRECA-sponsored retirement plans. NRECA will also post model SMMs for co-op-sponsored health flexible spending account and health reimbursement arrangement plans. Watch NRECA Employee Benefits Weekly for reminders when the SMMs are available.

How the extensions work
The COVID-19 outbreak period as defined in the relief notices began March 1, 2020 and will end 60 days after the declared end of the COVID-19 National Emergency. Because the national emergency has not yet ended, the outbreak period does not have an end date.

When calculating the usual timeframe or deadline listed below, participants and cooperatives should not include or factor in days that fall under the COVID-19 outbreak period. This applies to all benefit plans subject to ERISA or the Internal Revenue Code.

Electronic delivery alternative
Co-ops may use electronic delivery methods (such as email or posting to a company website) to distribute required documents during the outbreak period (without the usual requirement to obtain affirmative consent) if they reasonably believe the recipient can access the communications electronically. All co-ops should continue to record the distribution method when acknowledging distribution on the Employee Benefits website.

Specific relief

Distributing SPDs, SMMs, and SBCs
Co-ops must take good faith steps to distribute plan documents as soon as administratively possible during the outbreak period. Continue to track distribution statistics and acknowledge distribution on the Employee Benefits website.

  • For group SPDs, SMMs, and SBCs issued March 1 and later: When determining or counting the 60-day period to give SPDs, SMMs, or SBCs to participants and beneficiaries, do not include days that fall into the outbreak period. Note that this relief does not extend the distribution and acknowledgement window for group plan SPDs, SMMs, or SBCs that were effective January 1, 2020. These were due to current plan participants before March 1, 2020. NRECA will continue to monitor and follow up on the timely distribution and acknowledgement for these documents.
  • For retirement SPDs and SMMs: The outbreak period extends the deadline to distribute SPDs and SMMs to plan participants. Co-ops should continue to distribute and acknowledge documents due to participants during the outbreak period as soon as administratively possible.  

RS Plan and 401(k) Plan benefit claims and appeals
NRECA will not count the outbreak period when evaluating the timeliness of the following participant requests: 

  • The three-year window to submit a claim for RS Plan or 401(k) Plan benefits.
  • The 90-day window to appeal a denied claim for RS Plan or 401(k) Plan benefits.

Group Benefits Program special enrollment, claims and appeals timeframes
Days that fall under the outbreak period are not counted when calculating the following Group Benefits Program timeframes:

  • The HIPAA special enrollment period (normally 30 days from the date of the qualifying event). Co-ops should continue to submit special enrollments to NRECA through the Employee Benefits website. NRECA will reach out for clarification when needed.
  • The timeframes for participants to file an initial claim for benefits, to appeal an adverse benefit determination, to perfect a claim or appeal, and request external review of an adverse benefit determination or a final internal adverse benefit determination. Specific deadlines for each plan, all of which are to be calculated without the outbreak period, are listed on the COVID-19 page on the Employee Benefits website.

COBRA continuation coverage deadlines
Participants have additional time (they do not need to request the extension) during the outbreak period for these COBRA-related timeframes:

  • Electing initial COBRA coverage (normally a 60-day window),
  • Paying COBRA premiums: both the initial 45-day payment period after electing COBRA and the subsequent 30-day period from the first day of each coverage period.

Co-ops should continue to process COBRA qualifying events and offer COBRA coverage during the outbreak period. If you have elected UMR to manage COBRA for your co-op, UMR will apply any extensions and inform participants of the deadlines for both elections and premium payments as applicable.  

Questions
For full details about these deadline extensions, including the usual timeframes for each activity that are extended by the outbreak period, visit the COVID-19 page on the Employee Benefits website. If you have questions about how these individual extensions affect your co-op, contact the benefits compliance team at 866.673.2299, option 7 or pension.compliance@nreca.coop (for RS and 401(k) Plans) or group.compliance@nreca.coop (for Group Benefits Program).

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