Additional Extension of Time Frames for Employee Benefit Plans
Affected by Hurricane Katrina
[10/12/2005]
Volume 70, Number 196, Page 59619-59620
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Part IV
Department of Labor
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Employee Benefits Security Administration
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29 CFR Parts 2560 and 2590
Department of the Treasury
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Internal Revenue Service
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26 CFR Part 54
Additional Extension of Time Frames for Employee Benefit Plans Affected
by Hurricane Katrina; Final Rule
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DEPARTMENT OF LABOR
Employee Benefits Security Administration
29 CFR Parts 2560 and 2590
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 54
Additional Extension of Time Frames for Employee Benefit Plans
Affected by Hurricane Katrina
AGENCIES: Employee Benefits Security Administration, Department of
Labor; Internal Revenue Service, Department of the Treasury.
ACTION: Extension of time frames.
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SUMMARY: This document further extends certain time frames under the
Employee Retirement Income Security Act and Internal Revenue Code for
employee benefit plans, participants, and beneficiaries affected by
Hurricane Katrina.
EFFECTIVE DATE: October 12, 2005.
FOR FURTHER INFORMATION CONTACT: Amy Turner, Employee Benefits Security
Administration, Department of Labor, at 202-693-8335 for HIPAA issues;
Fred Wong, Employee Benefits Security Administration, Department of
Labor, at 202-693-8523 for COBRA notice and claims procedure issues; or
Russ Weinheimer, Internal Revenue Service, Department of the Treasury,
at 202-622-6080 for HIPAA, COBRA coverage, and COBRA premium issues.
SUPPLEMENTARY INFORMATION:
I. Background
On September 21, 2005, the Employee Benefits Security
Administration and the Internal Revenue Service published a joint
extension of time frames to help participants, beneficiaries, qualified
beneficiaries, and claimants directly affected by Hurricane Katrina who
might encounter problems in exercising their health coverage
portability or continuation coverage rights, or in filing or perfecting
a benefit claim. See 70 FR 55500. (``Original Hurricane Katrina
Extension''). This relief was provided under authority in section 518
of the Employee Retirement Income Security Act of 1974 (ERISA), 29
U.S.C. 1148, and section 7508A of the Internal Revenue Code of 1986
(Code), 26 U.S.C. 7508A.\1\ Shortly after the notice was published, the
Katrina Emergency Tax Relief Act of 2005 (KETRA) was enacted. Pub. L.
109-73. Section 403 of KETRA provides that any relief provided by the
Secretary of the Treasury under section 7508A of the Code shall be for
a period ending not earlier than February 28, 2006. Accordingly, this
document extends the end of the tolling period of the ERISA and Code
provisions under the Original Hurricane Katrina Extension through
February 28, 2006.
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\1\ ERISA section 518 and Code section 7508A generally provide
that, in the case of an employee benefit plan, sponsor,
administrator, participant, beneficiary, or other person with
respect to such a plan, affected by a Presidentially declared
disaster, notwithstanding any other provision of law, the
Secretaries of Labor and the Treasury may prescribe (by notice or
otherwise) a period of up to one year that may be disregarded in
determining the date by which any action is required or permitted to
be completed. Section 518 of ERISA and section 7508A of the Code
further provide that no plan shall be treated as failing to be
operated in accordance with the terms of the plan solely as a result
of complying with the postponement of a deadline under those
sections.
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The Agencies believe that such relief is immediately needed to
preserve and protect the benefits of participants and beneficiaries in
affected plans. Accordingly, the Agencies have determined, pursuant to
section 553 of the Administrative Procedure Act, 5 U.S.C. 553 (b) and
(d), that there is good cause for making the relief provided by this
notice effective immediately upon publication and that notice and
public participation may result in undue delay and, therefore, be
contrary to public interest.
The relief provided by this document supplements other Hurricane
Katrina disaster relief, which can be accessed on the Internet at
http://www.dol.gov and http://www.irs.gov. Information on the scope of the geographic areas eligible for relief is available at http://
http://www.fema.gov/news/disasters.fema.
II. Relief
The tolling periods described in paragraphs III.A and III.B. of the
Original Hurricane Katrina Extension at 70 FR 55500 are changed for
participants, beneficiaries, qualified beneficiaries, or claimants
directly affected by Hurricane Katrina (as defined in paragraph
III.C.(1) of the Original Hurricane Katrina Extension) and group health
plans directly affected by Hurricane Katrina (as defined in paragraph
III.C.(3) of the Original Hurricane Katrina Extension). The period
group health plans, disability and other welfare plans, pension plans,
and health insurance issuers subject to Part 7 of ERISA must disregard
is from August 29, 2005 through February 28, 2006.
Signed at Washington, DC, this 4th day of October, 2005.
Ann Combs,
Assistant Secretary, Employee Benefits Security Administration,
Department of Labor.
Signed this 7th day of October, 2005.
Mark E. Matthews,
Deputy Commissioner for Services and Enforcement, Internal Revenue
Service, Department of the Treasury.
[FR Doc. 05-20547 Filed 10-7-05; 2:10 pm]
BILLING CODE 4510-29-P
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