Rule Changes to Disability Benefit Plans Effective Jan. 1, 2018

Department of Labor increases consumer protections in denial of benefits cases.

11/28/17

young attractive couple accounting at homeIn less than two months, new provisions enhancing consumer protections regarding disability claims will go into effect.

The new provisions arise from the Department of Labor’s (DOL) final rule, revising the claims procedure regulations under the Employee Retirement Income Security Act of 1974 (ERISA) for employee benefit plans providing disability benefits.

The final rule revises and strengthens the current rules primarily by adopting certain procedural protections and safeguards for disability benefit claims that are currently applicable to claims for group health benefits pursuant to the Affordable Care Act. This rule affects plan administrators and participants and beneficiaries of plans providing disability benefits, and others who assist in the provision of these benefits, such as third-party benefits administrators and other service providers.

As a result of these rule changes and new provisions, credit unions will want to review their disability benefits plans, which may include deferred compensation plans and supplemental executive retirement plans (SERP) and work with service providers to ensure compliance.

More information about the DOL’s final rule can be found in the department’s fact sheet.

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Questions? Contact the Compliance Hotline: 1.800.546.4465, compliance@nwcua.org.