Extension of Certain Timeframes for Employee Benefit Plans, Participants, and Beneficiaries Affected by the COVID-19 Outbreak.
The Department of Labor, jointly with the Department of the Treasury, this week issued a notice that extends certain time frames affecting participants’ rights to elect continuation of group health plan coverage under COBRA, and also extends the grace period for payment of COBRA premiums. These extensions have been enacted ” so plan participants, beneficiaries, and employers have additional time to make critical health coverage and other decisions affecting benefits during the COVID-19 outbreak”.
Among other things, the notice’s extensions of time periods are tied to the date of announced end of the national emergency declared by President Trump. Since that date is not yet known, there will not be full clarity as to the time frames until that announcement is made.
A link to the news release can be found below.
Please note that this information is being shared as a service to our clients and we cannot provide legal or tax advice regarding the notice or its requirements. For those questions, you should consult your own counsel. JFA will continue to monitor the situation as it continues to evolve.