Disability Claims Procedures: Implementation of Rule Delayed Through April 1, 2018

In a recent blog post we discussed the new disability claims procedure rules scheduled to go into effect on January 1, 2018.

Earlier this year, as part of the administration’s direction to evaluate existing regulations to make them less burdensome, the Department of Labor (DOL) opened a comment period (through December 11, 2017) on whether the new disability claims procedure rule should be modified, rescinded or retained and raised the possibility of a delay.

Based on the mixed comments received thus far on the need for the delay, the DOL decided to push the implementation of the new disability claim procedure rules for 90 days (through April 1, 2018).  This will allow additional time to undertake a full and fair review of the disability benefit claims procedure and determine what, if any, changes are required to avoid imposing unnecessary cost and adverse consequences.

Janel Brynda advises U.S. and multi-national employers on all matters related to executive compensation and employee benefits. Ms. Brynda's practice focuses on traditional employee benefit plans, including qualified retirement plans and health and welfare plans. She also advises on the tax, securities and ERISA aspects of executive and equity compensation, including non-qualified deferred compensation plans, stock compensation plans, employee stock purchase plans, change in control plans, perquisite programs, and executive employment and severance agreements. Ms. Brynda also has experience assisting clients with compensation and employee benefit issues raised in mergers and acquisitions, spin-offs, reorganizations and other corporate transactions, including golden parachute payments, COBRA and due diligence review.