Benefit Plan Deadline Relief Announced for Those Affected by Hurricanes Helene and Milton

November 19, 2024

On November 7, 2024, the DOL and IRS (the agencies) issued joint guidance providing an extension of various compliance deadlines for employee benefit plans, participants, beneficiaries, qualified beneficiaries, and claimants directly affected by Hurricane Helene, Tropical Storm Helene, or Hurricane Milton. In a separate announcement, Disaster Relief Notice 2024-01, the DOL provided additional relief for such plans and individuals.

The joint guidance is primarily designed to minimize the possibility of individuals directly affected by these natural disasters from losing plan benefits due to a failure to comply with certain pre-established timeframes (e.g., with respect to HIPAA special enrollments, COBRA continuation coverage, or ERISA benefit claims). “Directly affected” means the individual resided, lived, or worked in one of the disaster areas (as designated by FEMA) at the time of the hurricane or tropical storm or whose coverage was under an employee benefit plan that was directly affected. Generally, a plan is directly affected if the principal place of business of the plan sponsor or office of the plan administrator or primary recordkeeper is in a disaster area.

Specifically, ERISA group health plans, disability and other welfare benefit plans, and pension benefit plans must disregard the relevant Relief Period (as explained below) in determining the following periods and dates applicable to directly affected individuals:

• The 30-day (or 60-day, if applicable) deadline to request a HIPAA special enrollment
• The 60-day COBRA election period
• The 30-day (or 60-day, if applicable) deadline to notify the plan of a COBRA qualifying event (and the 60-day deadline to notify the plan of a determination of a disability)
• The 45-day deadline to make a first COBRA premium payment and 30-day deadline for subsequent COBRA premium payments
• Deadlines to file benefit claims or appeals under the plan’s claims procedures
• Deadlines for filing a request for external review of a denied claim or information to perfect a request for external review

Furthermore, relief is provided for directly affected group health plans by allowing sponsors to disregard the relevant Relief Period when determining the date for providing a COBRA election notice.

The commencement of the relevant Relief Period ranges from September 23 to October 5, 2024, depending upon the specific hurricane and disaster area in Florida, Georgia, North Carolina, South Carolina, Tennessee, and Virginia, and ends on May 1, 2025. For example, for designated disaster areas in North Carolina, South Carolina, and Virginia due to Hurricane or Tropical Storm Helene, the Relief Period begins on September 25, 2024, and ends on May 1, 2025. Plan sponsors with directly affected plans or individuals should refer to the joint notice to determine the Relief Period commencement date applicable to their situation.

The tolling of applicable deadlines during the Relief Period is like that during the “Outbreak Period” of the COVID-19 pandemic. The joint guidance provides numerous examples to illustrate the application. In one example, an individual who resides in Columbia, South Carolina (a disaster area), is eligible for, but previously declined participation in, her employer-sponsored group health plan. On October 31, 2024, she gives birth to a child. The example explains that she would normally have at least 30 days from the date of the birth to exercise her HIPAA special enrollment right to enroll herself and the child in the group health plan (with coverage retroactive to the date of birth). However, under the relief guidance, she may exercise her special enrollment rights until 30 days after May 1, 2025, which is May 31, 2025, if she pays her share of the premiums for the period of coverage.

HHS encourages non-federal governmental plans to extend the otherwise applicable timeframes for directly affected individuals in a manner consistent with the relief specified in the joint guidance.

Additionally, in Disaster Relief Notice 2024-01, the DOL provides an extension of deadlines for affected plan sponsors to provide notices, disclosures, and other documents required by Title 1 of ERISA over which the DOL has regulatory authority (and excepting notices and disclosures addressed by the joint guidance). (The DOL’s Reporting and Disclosure Guide for Employee Benefit Plans provides further information on Title 1 disclosures.) The relief under Notice 2024-01 extends for the Relief Period, provided the plan and responsible fiduciary act in good faith and furnish the notice, disclosure, or document as soon as administratively practicable under the circumstances. Notice 2024-01 also provides certain relief regarding pension plan loan and distribution verification procedures, participant contributions and loan repayments, blackout notices, and Form 5500 filings. The DOL reminds plan fiduciaries that the guiding principle must be to act reasonably, prudently, and in the interest of the covered individuals.

Sponsors of ERISA benefit plans and/or with participants directly affected by the disasters should be aware of the timeframe extensions and ensure that HIPAA special enrollment rights, COBRA continuation coverage, claim reviews, and other procedures are administered in accordance with the relief guidance, as applicable. The timeframe extensions should also be coordinated, as necessary, with service providers, such as COBRA administrators and TPAs. Sponsors should review the guidance for further details.

Extension of Certain Timeframes for Employee Benefit Plans, Participants, Beneficiaries, Qualified Beneficiaries, and Claimants Affected by Hurricane Helene, Tropical Storm Helene, or Hurricane Milton

Disaster Relief Notice 2024-01