Better Late Than Never: DOL Guidance Clarifies COVID-19 Deadline Extensions
Last spring, as plan sponsors, administrators, and participants were scrambling to respond to the early stages of the COVID-19 emergency, the Department of Labor and other agencies issued guidance that “stopped the clock” with respect to a number of deadlines. The deadlines impacted by that guidance included the deadlines to elect COBRA, pay COBRA premiums, elect HIPAA special enrollment, and file claims and appeals, all of which were tolled during the “Outbreak Period” related to COVID-19. The suspension of these deadlines is referred to as the “Outbreak Period Extensions.”
The DOL’s newest guidance, Notice 2021-01, sets forth the DOL and IRS’ position that the COVID-19 extensions will continue past February 28th, and that all such extensions must be measured on a person-by-person basis – which was not clear from previous guidance.
Specifically, DOL says that a deadline will be tolled until the earlier of:
i. One year from the date the deadline would have begun running for that individual; or
ii. 60 days from the end of the National Emergency (which is still ongoing).