American Rescue Plan Act of 2021 and Employee Benefit Plans: Next Steps for Plan Sponsors and Administrators

Strafford

This CLE webinar will provide employee benefits counsel, sponsors, and administrators an in-depth analysis of the impact of the American Rescue Plan Act of 2021 (ARPA) on employee benefit plans. The panel will discuss critical provisions of ARPA for plan sponsors and administrators and the impact on qualified retirement plans, pensions, and group health plans. The panel will also discuss critical next steps for employers in light of ARPA.

Description

On Mar. 11, 2021, President Biden signed ARPA. This latest stimulus package contains several employee benefit plan and executive compensation provisions. Employee benefits counsel and fiduciaries must understand the impact of ARPA and implement actions to assist plan sponsors and administrators.

ARPA provides significant health and welfare plan opportunities to individuals who COVID-19 has impacted. It provides for an employer-administered COBRA subsidy opportunity for individuals and increases dependent care flexible spending account limits. Also, ARPA provides federal tax credits to encourage employers to voluntarily offer paid leave of the type required under last year's Families First Coronavirus Response Act, in addition to other key provisions for health and welfare plans.

For pension plans, ARPA contains several provisions designed to provide relief to multiemployer pension plans, contributing employers, and plan participants. For underfunded plans, it provides financial assistance that is not subject to repayment for plans that are in critical status, has suspended benefits, or otherwise are insolvent but not terminated.

Also, Section 162(m) limits the federal tax deduction that a public company may take for compensation paid to a "covered employee" in a tax year to $1 million. ARPA amends the definition of covered employees to include an added five highest-paid employees in addition to the named executive officers.

Listen as our panel discusses critical provisions of ARPA for plan sponsors and administrators and the impact on qualified retirement plans, pensions, group health plans, and executive compensation.

Outline

1. Health and welfare benefits
2. Pension plans
3. Executive compensation and Sec. 162(m)
4. Challenges and next steps for plan sponsors and administrators

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