By Dana Stripling, JD, Garlo Ward, P.C.
www.garloward.com
Posted July 7, 2004
They have been imminent for months. Just last week, the Department of Labor (DOL) issued final notice regulations for the Consolidated Omnibus Budget Reconciliation Act (COBRA). Some noteworthy changes:
- In the model Election Notice, the requirement that employers list the names of qualified beneficiaries has been eliminated. Instead, qualified beneficiaries can be referred to either by status (e.g., employee, spouse, dependent child covered under the plan prior to the qualifying event) or by name.
- The default standard employees may use if a plan does not adopt reasonable procedures for them to provide notice of a qualifying event has been modified. Eliminated: A reference that notice may be made to “any officer of the employer.”
- The timing of the COBRA notices remains the same.
Employers’ obligations will not kick in until the first day of the next plan year that starts after November 26, 2004. In the interim, DOL says it will consider employers to be in good faith compliance if they abide by the notice requirements in last year’s proposed regulations.
Look for a more in-depth review of the new rules in future Garlo Ward updates.
Economic Assistance For Small Businesses
Affected By Military Deployments
Small and medium-sized businesses negatively impacted by the deployment of essential employees (including owners) can apply for low-cost loans under the Military Reservist Economic Injury Disaster Loan program. So far in fiscal 2004, the Small Business Administration has forked over $4.75 million in approving 50 loans. Find out more at:
http://www.sba.gov/disaster_recov/loaninfo/militaryreservist.html.
All information in this article is informational only and is not legal advice. Should you have any questions or a situation requiring advice, please contact an attorney.
Copyright 2004 by Garlo Ward, P.C., all rights reserved
