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The ERISA Industry Committee. Washington Update: December 5, 2011 . Participation Procedure . Procedure for audience participation Audience will be in a “listen-only” mode If you wish to ask a question or make a comment, press *6 on your telephone to “un-mute” your telephone
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The ERISA Industry Committee Washington Update: December 5, 2011
Participation Procedure • Procedure for audience participation • Audience will be in a “listen-only” mode • If you wish to ask a question or make a comment, press *6 on your telephone to “un-mute” your telephone • After speaking, please press *6 again to re-enter “listen-only” mode
Be the last on your block! • Check out the new ERIC website: www.ERIC.org
Washington Update Agenda Welcoming Remarks Retirement Update Health Update Concluding Remarks/Questions
Retirement – Legislative Update • Demise of Super Committee (11/12/11) • Next Steps/Pressing Congressional Business • Extension of Payroll Tax Holiday (with extension to employers) • Extension of Unemployment Benefits • “Doc Fix” • “AMT” Issues
Retirement – Legislative Update, cont. 2012-2013 Issues • Expiration of Bush Tax Cuts • Deficit Commission Failure & Effect • Defined Contribution Plans & Tax Reform • Tax Reform (“Sense of Congress” Resolution)
Retirement – Legislative Update, cont. ERIC LOBBYING ACTIVITIES • PBGC Premium Proposal • Pension Funding Proposal • Hybrid Plan Lobby Campaign Update
Retirement – Regulatory Update Department of Labor Definition of Fiduciary Regulations to undergo additional economic analysis – most likely to come out in early 2012 (96-1 likely to be amended) Service provider final disclosure regulations (under 408(b)(2)) still at OMB (at OMB for Paperwork Reduction Act review) Participant fee disclosure regulations – expected first quarter 2012
Retirement – Regulatory Update, cont. • DOL Investment Advice Final regulations under PPA issued – ERIC member survey results • Lifetime Income Disclosure & Benefits Statement Project • ERIC/PSCA held joint conference call on 11/15/11 • ERIC/PSCA to meet with DOL on 12/8/11
Retirement – Regulatory Update IRS & Treasury IRS/Treasury lifetime income guidance– Treasury guidance to be first out of gate “soon” to be followed by DOL & Treasury joint guidance - ERIC & PSCA to schedule meeting with Treasury & IRS on this issue
Health: Budget Control Act of 2011 • Part Two: debt ceiling increased $1.2T - $1.5T • Super Committee charged with achieving $1.5T debt reduction • Unable to agree on a package • Thus: sequestration • $1.2T in cuts > FY 2013 - FY 2021 go automatically into effect • Effective January 2, 2013 • Cuts divided equally between defense and non-defense
Health: Impact of sequestration • Exempt from cuts: Medicaid and social security • OK to cut Medicare, but not more than 2%, and may only apply to provider payments • Medicare cuts expected to approach $123B • Also exempt: CHIP, Part D low-income subsidies, Catastrophic coverage subsidies, ACA premium subsidies
SCOTUS and the ACA • SCOTUS will consider ACA constitutionality • Oral arguments this spring • Decision probable late June • Key issues • Individual mandate – heart of the case • Severability • Impact of the AIA • Medicaid expansion • Circuit Courts split over constitutionality • Two favorable, one against, one no standing
Health legislative update:CLASS Act • HHS Secretary Sebelius “suspends” implementation of CLASS Act • LTC program under the ACA • “…we have not identified a way to make CLASS work at this time.” • Several hearings in House • Bills introduced in both House and Senate to repeal • Congressional passage unlikely
Amendments to SF HCSO • San Francisco Health Care Security Ordinance requires medium/large employers to pay for employee health care • One mechanism: HRA • HCSO amends rules on use of HRAs • 24 months to use contributions • Rollover of year-end 2011 balances • New reporting requirements • ERISA preemption implications? • FocusOn call 12/7
Health: regulatory guidance • Uniform summary of benefits and coverage • New rules not applicable until issuance of final regulations • Mental health parity • Guidance on applying parity to “nonquantitative treatment limitations”
Meetings with regulators • OMB • Use of Medicare claims data • EEOC • Wellness madness
New initiative: ERIC Wellness Coalition • First conference call: Wednesday, 11/9 • Initial task: address regulatory challenges under GINA, ADA, HIPAA, and (presumably) ACA • Results of informal survey • To join coalition: email gyoung@eric.org
FocusOn calls • Completed: • Wellness (11/9) • ERRP (11/15) • Health care reform task force (12/1) • Upcoming: • SF HCSO (12/7) • HRAs under the ACA (12/8) • Reporting health care costs on the W-2 (12/13) • Health care reform task force (1/5/12) • Impact of same-sex marriages (TBD)
Upcoming ERIC meetings • Next Washington Update call: 1/9/12 • ERIC Membership and Health Policy/Retirement Security Committee meetings: March 14 and 15, 2012
To receive ERIC updates • If you would like to receive your own copy of our emails and notifications of future updates, please let us know by writing to Adrienne Cooper at ERIC (acooper@eric.org.) In this email, please include your contact information or signature block, and please indicate whether you wish to receive information on retirement issues, health issues, or both.
For further information • Kathryn Ricard, Senior Vice President, Retirement Security • kricard@eric.org • Gretchen Young, Senior Vice President, Health Policy • gyoung@eric.org • ERIC: 202/789-1400