Please visit the Homes for Our Troops website. If you have any questions about the letter that you received from the Association about Homes for Our Troops or if you would like another copy of the letter, please contact Rob Kimmett, senior vice president, marketing and public relations, rkimmett@cucenter.org or call him at 1-800-842-1242.
Economic Stimulus Package Provides New COBRA Subsidy
The American Recovery and Reinvestment Act (ARRA) provides a 65% COBRA subsidy for up to nine months for certain eligible laid-off workers and requires immediate action by employers. The Federal government will subsidize 65% of the COBRA premium for “Assistance Eligible Individuals.” These are basically, involuntarily terminated employees and their families who are eligible for COBRA coverage. This reduction applies to individuals who are involuntarily terminated between September 1, 2008 and December 31, 2009.
Employers are responsible for delivering the 65% subsidy by reducing COBRA premiums. Employers may be reimbursed through a credit on Internal Revenue Service (IRS) Form 941. A revised 2009 Form 941 has added Lines 12a and 12b for employers to claim the credit. The employer cannot take the credit until the employer has received the 35% premium payment from the individual. The employer must retain specific documentation for the COBRA credit claimed on form 941.
The premium reduction applies to periods of health coverage beginning on or after February 17, 2009 and lasts for up to nine months. Employers must immediately identify employees impacted by this new law and send them notice of the new subsidy and their new ability to elect COBRA if they did not elect COBRA when first notified.
Qualified individuals who initially declined COBRA coverage are to be given an additional 60 days after they receive notice of the special election period to elect to receive the subsidy.
The U.S. Department of Labor (DOL) will provide the new Model Notices by mid-March. Employers will need to immediately revise their plan documents to reflect this new law.
Links to additional IRS and DOL/EBSA Guidance:
If you have not outsourced your COBRA administration, now may be a good time to do so. The League’s Members Insurance Agency, LLC can provide you with assistance. E-mail Pam Nolan at pnolan@cucenter.org or call 888-746-2476.
Recent and Upcoming Changes in Human Resource Issues
The changes in employment regulations have been coming with great speed in the last few months and are expected to continue under the new Administration. The following important changes are ones that credit unions should carefully analyze.
The Lilly Ledbetter Fair Pay Act of 2009reverses prior decisions on the deadline for filing a charge of discrimination based on unequal pay to one that states that each paycheck that delivers discriminatory compensation is a wrong, actionable under the federal Equal Employment Opportunity statutes, regardless of when the discrimination began. Credit unions need to ensure that their pay practices are non-discriminatory.
Effective January 1, 2009, the Americans with Disabilities Act Amendments Act (ADAAA) expanded the definition of the term “disability” and significantly increased the individuals who will be protected by the Americans with Disabilities Act (ADA). The focus of this amended act is a change in perspective from who is protected to whether employers are complying with their obligations under the law. Credit unions will need to review their disability policies and interactive processes to ensure compliance with the expanded requirements and changed focus. ADA will impact credit unions with 15 or more employees.
Effective January 16, 2009, revised and expanded regulations for the federal Family Medical Leave Act (FMLA) went into effect. Along with these new requirements, many of which are aimed at new leaves for military personnel and the family members of injured military personnel, there are also a host of new forms mandated for use; and old forms which are no longer allowed by the Department of Labor. FMLA will impact credit unions with 50 or more employees.
President Obama has expressed his intention to sign into law the Employee Free Choice Act (EFCA)which would amend the National Labor Relations Act “to establish an efficient system to enable employees to form, join, or assist labor organizations….” Among other things the EFCA would facilitate union organizing by doing away with secret ballot votes.
The HR Network at the Credit Union Center will monitor all of these new rules closely in the upcoming year. On March 24, 2009, the HR Network will present a program on both FMLA and ADAAA at the Credit Union Center. If you have specific questions, please contact Beverly Purtell, vice president of human resource management, at bpurtell@cucenter.org.
