Got Employee Benefit Plans? Keep an Eye on Pending Legislation.
Just when you think employee benefit plans couldn’t get any more confusing or complicated, new federal legislation gets proposed to prove you wrong. Thanks to a great article written by Gary W. Howell and Michael R. Durnwald of Katten, Muchin, Rosenman, LLP, and posted on LinkedIn, it’s clear that business owners need to keep an eye on pending legislation regarding several popular employee benefit options, including 401(k) plans, executive and equity compensation and flexible spending accounts (FSAs).
“Some of the proposed legislation repeals recent changes to programs that were enacted just this year,” says Kelly Coblentz, PHR, hireVision’s Director of HR Services. “Health FSAs, for example, would once again allow employees to be reimbursed for the purchase of over-the-counter medications, which were taken off the program in January 2011.” Other legislation, if and when enacted, may alter plan designs and increase regulations around various benefit options.
Here are some links, also courtesy of the LinkedIn article “Pending Legislation Could Affect Employee Benefit Plans”, to online government information regarding some of the proposed changes heading our way:
- S. 267.IS, Lifetime Income Disclosure Act (to amend the Employee Retirement Income Security Act of 1974 to require a lifetime income disclosure)
- S.1020.IS, SEAL 401(k) Savings Act (to amend the Internal Revenue Code of 1986 to modify the rules relating to loans made from a qualified employer plan, and for other purposes.)
Executive and Equity Compensation:
- H.R.1062.IH, Burdensome Data Collection Relief Act (to amend the Dodd-Frank Wall Street Reform and Consumer Protection Act to repeal certain additional disclosure requirements, and for other purposes)
- S.1375.IS, Ending Excessive Corporate Deductions for Stock Options Act (to amend the Internal Revenue Code of 1986 to provide that corporate tax benefits based upon stock option compensation expenses be consistent with accounting expenses shown in corporate financial statements for such compensation)
- S.1368.IS, Restoring Access to Medication Act (to amend the Patient Protection and Affordable Care Act to repeal distributions for medicine qualified only if for prescribed drug or insulin)
- H.R.2529.IH, Restoring Access to Medication Act (to amend the Patient Protection and Affordable Care Act to repeal distributions for medicine qualified only if for prescribed drug or insulin)
If you are one of many employers scratching your head right now, wondering how these pending laws will affect your business, take comfort in knowing you are not alone, and that you still have time to prepare. hireVision is ready to assist you with this or your other employment administration needs, so contact us today.