The Impact of FFCRA and the CARES Act on Employee Benefit Plans, Programs and Arrangements
The COVID-19 outbreak has had a devastating impact on public health, as well as a host of second order effects on the U.S. and world economy. Businesses of all sizes are shedding workers and trimming costs. The Families First Coronavirus Response Act (FFCRA) provided much needed support to U.S. employers and employees in the form of enhanced unemployment insurance benefits, new federal emergency paid leave benefits and refundable tax credits for small businesses to defray the cost of the paid leave. These programs were expanded upon in the recently enacted Coronavirus Aid, Relief and Economic Security (CARES) Act.
As a result, a myriad of questions have been flooding the in-boxes of benefits advisors, health care providers, insurance carriers and administrative service vendors of all stripes.
David Guadagnoli was a panelist at this virtual program, sponsored by NEEBC, designed to respond to those questions. The panel discussed:
- The provisions of the FFCRA and the CARES Act that affect employer-sponsored benefit plans, with an emphasis on health and welfare plans, pensions plans and severance arrangements
- The handing of benefits in the event of furlough, layoffs and leave, the suspension or reduction of retirement benefits and the coverage of COVID-19 testing, among others