Effective April 1, 2018, employee benefit plans must comply with the DOL’s new rule on disability claim procedures. Under the rule, additional safeguards will be imposed on benefits related to disability claims. The procedures also apply to welfare plans, 401(K) plans, and 403(B) plans.
ParkerPoe further explains:
Affected plans are not limited to disability plans. Any plan where a participant could be entitled to a particular benefit based on a determination of disability (such as acceleration of vesting, additional accruals, or special distribution rights) is subject to the new rule. This could include welfare plans, 401(k) plans and other qualified retirement plans, 403(b) plans, 457(b) plans, and even non-qualified deferred compensation plans that are subject to ERISA.
Employers should begin updating their plan documentation to reflect the new rule, including plan denial notices and claims procedures.
For more in this DOL rule and which plans are affected, please click here.
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