Here is a summary of some of the agency relief provided for plan sponsors and employers affected by Hurricane Katrina:
DOL Relief:
Extension of the deadline for filing Form 5500 and Form 5500 EZ annual report/returns for certain parishes and counties in Alabama, Mississippi, and Louisiana. Excerpt from the Releases:
Under this relief, Form 5500 series filings required to be filed between Aug. 29, 2005, and Oct. 31, 2005, are granted an extension until Oct. 31, 2005. Plan filers entitled to an extension of relief should check Part I, Box D, on the Form 5500 or Part 1 on Form 5500-EZ and attach a statement to the form in accordance with the instructions.The agencies — EBSA, Internal Revenue Service and Pension Benefit Guaranty Corporation — realize that, due to this natural disaster, there may be instances when full compliance may not be possible. The guiding principle must be to ensure that appropriate efforts are made to act reasonably, prudently, and in the interest of the workers and their families who rely on their health, pension and other benefits for their physical and economic well-being.
IRS Relief:
The Internal Revenue Service has provided special relief for taxpayers in the Presidential Disaster Areas struck by Hurricane Katrina. These taxpayers generally will have until Oct. 31, 2005, to file tax returns and submit tax payments. The IRS will abate interest and any late filing or late payment penalties that would otherwise apply. This relief includes the Sept. 15 due date for estimated taxes and for calendar-year corporate returns with automatic extensions. See IR-2005-84 and also IR-2005-91.
This link here indicates that the “extension to file and pay does not apply to information returns in the W-2, 1098, 1099 or 5498 series, to Forms 1042-S or 8027, or to employment and excise tax deposits.” The web page goes on to indicate that that the “IRS may abate penalties on such deposits for affected taxpayers due to reasonable cause during the FTD Penalty Waiver Period, provided they make the payment by the last day of that Period” and that “[t]axpayers whose specific disaster-related circumstances prevent them from making tax deposits within that Period may seek penalty abatements on a case-by-case basis.” Tax Relief: Presidentially Declared Disaster Areas
Also, with respect to minimum funding requirements, Notice 2005-60 (via Benefitslink.com) provides:
“For any plan that is affected by Katrina (an “Affected Plan”), if the date described in § 412(c)(10) or 412(m) of the Code and § 302(c)(10) or 302(e) of ERISA for making contributions falls within the period beginning on August 29, 2005, and ending on October 30, 2005, then the date such contributions must be made is postponed to October 31, 2005. If the date described in § 412(d)(4) of the Code and § 303(d)(1) of ERISA for applying for a waiver for an Affected Plan falls within the period beginning on August 29, 2005, and ending on October 30, 2005, then the date such waiver must be applied for is postponed to October 31, 2005.”
The IRS indicates in IR-2005-91 that “[f]or the hardest-hit areas, the IRS anticipates extending these deadlines even further in the near future.”
PBGC Relief:
For employers who sponsor defined-benefit pension plans in Louisiana, Mississippi and Alabama, the PBGC has announced extended deadlines for certain required filings, including premium payment filings, plan termination filings, participant notices, reportable events notices, and certain employer reporting for underfunded plans. The relief is for “Designated Persons” defined as “any person responsible for meeting a PBGC deadline (for example, a plan administrator or contributing sponsor) that (1) is located in a disaster area for which the IRS has provided relief in IR-2005-84, Aug. 30, 2005, in connection with filing extensions for Form 5500 series returns, or (2) cannot reasonably obtain information or other assistance needed to meet the deadline from a service provider, bank, or other person whose operations are directly affected by Hurricane Katrina.” Employers may call 1-800-736-2444 or 202-326-4242. PBGC Public Affairs, 202-326-4040
SHRM has a helpful resource page here.
UPDATE: The Department of Health and Human Services has issued a Bulletin entitled “HIPAA Privacy and Disclosures in Emergency Situations.” The purpose of the Bulletin is to “emphasize how the HIPAA Privacy Rule allows patient information to be shared to assist in disaster relief efforts, and to assist patients in receiving the care they need.” (Source: American Health Lawyers Association)
Also, the Texas Supreme Court has issued an Advisory announcing that “Texas will permit lawyers from Louisiana, Mississippi or Alabama to practice law from Texas locations.” (Source: American Health Lawyers Association)
FURTHER UPDATE: The Department of the Treasury and Internal Revenue Service officials have announced special relief intended to support leave-based donation programs to aid victims who have suffered from the extraordinary destruction caused by Hurricane Katrina. Under these programs, employees can donate their vacation, sick or personal leave in exchange for employer cash payments made to qualified tax-exempt organizations providing relief for the victims of Hurricane Katrina. Under Notice 2005-68, employees can forgo leave in exchange for employer cash payments made before January 1, 2007, to qualified tax-exempt organizations providing relief for Hurricane Katrina victims. Employees do not have to include the donated leave in their income. Employers will be permitted to deduct the amount of the cash payment.
FURTHER UPDATE: The Treasury Department and IRS announced that 401(k) plans and similar plans, such as those under section 403(b), will be permitted to make loans and hardship distributions to victims of Hurricane Katrina. From the press release: “Today’s action will allow those devastated by Hurricane Katrina access to much-needed money as they work to rebuild their lives,” stated Treasury Secretary John Snow.? “I also applaud action taken in the House and Senate today to provide tax relief to Katrina victims and to allow these withdrawals to be made without penalty.” The relief is generally available now through March 31, 2006.?See IRS Announcement 2005-70.