Medicare Part D Notices. The annual enrollment period for Medicare Part D and Medicare Advantage began on October 15, 2011 and will end December 7, 2011. Therefore, plan sponsors must provide creditable (or non-creditable) coverage notices one month earlier than in prior years (by October 15th rather than the traditional November 15th deadline). To reflect this change, the Centers for Medicare and Medicaid Services (CMS) have revised the model Part D notices.

Institute of Medicine Releases Recommendations for Determining Essential Health Benefits. On October 7, 2011 in a report by the Institute of Medicine (IOM) to the U.S. Department of Health and Human Services (HHS), the IOM recommended a proposed methodology for determining the essential health benefits (EHB) that certain insurance plans must offer under the Affordable Care Act. The HHS maintains the responsibility to ensure that such benefits are affordable to consumers, employers, and taxpayers, and that the health gain provided by each benefit is sufficient to justify the additional cost.

NLRB Delays Union Rights Poster Mandate. On October 5, 2011, the National Labor Relations Board (NLRB) announced postponement of the implementation date for its new notice-posting rule from November 14, 2011 to January 31, 2012. The stated reason for the delay is to allow for enhanced education and outreach to employers, particularly small and medium-sized businesses, in order to achieve voluntary compliance. The NLRB stated that no other changes in the rule, or in the form or content of the posting notice, will be made.

IRS Offers Misclassification Tax Relief. On September 21, 2011, The Internal Revenue Service (IRS) announced the Voluntary Classification Settlement Program (VCSP) that permits employers to voluntarily reclassify workers for future tax periods with limited federal employment tax liability for past non-employee treatment. The VCSP, however, is only available to employers outside of an IRS examination. In order to participate in the voluntary program, an employer must meet certain eligibility requirements, formally apply to the program, and enter into a closing agreement with the IRS.

USCIS Confirms New Petition Approval Notification Process. On September 21, 2011, U.S. Citizenship and Immigration Services (USCIS) confirmed it has changed the way in which foreign nationals, employers, and attorney representatives are notified of application and petition approvals. Prior to this change, attorneys of record received Form I-797A (the official Notice of Approval issued by USCIS) and a courtesy copy (Form I-797C) was sent to the employer and/or foreign national. USCIS now sends the original approval notice to the employer or to the foreign national, with the attorney of record receiving the courtesy copy. USCIS confirmed that this new mailing system will remain unchanged and will be included in the final rule for Immigration Benefits Business Transformation to be published on November 28, 2011.

DOL and IRS Jointly Tackle Misclassification of Workers. On September 19, 2011, The U.S. DOL and the IRS signed a memorandum of understanding (MOU) that allows the DOL to share information and conduct law enforcement efforts with the IRS to address workers misclassified as independent contractors, rather than employees.

IRS issued Notice 2011-72. On September 14, 2011, the Internal Revenue Service (IRS) issued Notice 2011-72, which provides long-awaited relief regarding the tax treatment of employee use of employer-provided cellphones or other similar telecommunications equipment (e.g., PDAs, BlackBerrys, etc.).

DOL Issues Guidance on Electronic Disclosure. On September 13, 2011, in a Technical Release by the DOL, it was specified that Plan Administrators can satisfy fiduciary requirements for disclosures concerning participant-directed individual account plans (the most common example being 401(k) plans) through the use of electronic media in certain circumstances. Technical Release 2011-03 provides guidance on using electronic media for plan information disclosures in two situations: 1) when the information disclosed is included in a pension benefits statement; and 2) when the information is disclosed separately from a pension benefits statement.