Statement of Assistant Secretary Ann L. Combs:
The Department, in conjunction with IRS Announcement 2005-70, provided guidance to facilitate hardship and loan distributions to participants and beneficiaries affected by Hurricane Katrina. In addition to the distribution issues addressed in the IRS Announcement, the Employee Benefits Security Administration has received inquiries concerning the application of rules governing participant contributions and loan repayments and the furnishing of blackout notices to employers and plans in areas affected by the Hurricane.EBSA realizes that, due to this natural disaster, there may be instances when full compliance may not be possible. The guiding principle must be to ensure that appropriate efforts are made to act reasonably, prudently and in the interest of the workers and their families, who rely on their health, pension and other benefits for their physical and economic well-being.
The guidance provided in this statement applies to employers, plan sponsors, as well as service providers to such employers, and plans located in counties and parishes in Louisiana, Mississippi, or Alabama that have been or are later designated as disaster areas eligible for Individual Assistance by the Federal Emergency Management Agency because of the devastation caused by Hurricane Katrina.
EBSA 9/20 News Release, U.S. Labor Department Extends Time and Areas Covered by Reporting Relief for Areas Hit by Hurricane Katrina:
The U.S. Department of Labor’s Employee Benefits Security Administration (EBSA) today announced additional time has been granted to Jan. 3, 2006, for filing deadline of Form 5500 and Form 5500 EZ annual report/returns for employee benefit plans affected by Hurricane Katrina.
EBSA 9/19 News Release, U. S. Labor Department Helps Hurricane Katrina Victims Preserve Health Benefits with Fact Sheet:
The U.S. Department of Labor’s Employee Benefits Security Administration (EBSA), in conjunction with the Internal Revenue Service, announced an extension of a number of deadlines related to health plan coverage, giving workers and employers affected by Hurricane Katrina additional time to make critical decisions regarding health coverage.“We want to make sure that hurricane survivors don’t lose health coverage or other important benefits because they were unable to meet the normal deadlines,” said Secretary of Labor Elaine L. Chao. “This is part of the President’s promise to cut through red tape to help Hurricane Katrina survivors and their families resume their lives.”
The relief provides additional time to comply with certain deadlines contained in the Consolidated Omnibus Budget Reconciliation Act (COBRA), the Health Insurance Portability and Accountability Act (HIPAA) and the rules for processing of health claims.