Mercer Short Duration Fixed Income Fund Class Y-3 · NASDAQ:MSDYX
Mercer Short Duration Fixed Income Fund Class Y-3 — Mercer — gl 2021 washington briefing april 7
41 slides from Mercer Short Duration Fixed Income Fund Class Y-3's investor presentation, Apr 7, 2021
Slide 1: Washington Update
Washington Update April 7, 2021 Law and Policy Group welcome to brighter
Slide 2: Speakers
Speakers Dorian Z. Smith Geoff Manville Katharine Marshall Margaret Berger Carol Silverman Partner, National Partner, Senior Principal, Partner, Mercer’s Partner, Mercer’s Practice Leader for Government Mercer’s Law and Law and Policy Executive Law Mercer’s Law and Relations Leader Policy Group Grou
Slide 3: Agenda
Agenda 1. Health benefits 2. Retirement benefits 3. Executive rewards 4. Mercer resources 5. Q&A
Slide 4: Health benefits
Health benefits
Slide 5: Noteworthy events since November 2020 for employer health plans
Noteworthy events since November 2020 for employer health plans Quick hits • SCOTUS: In Rutledge v. Pharmaceutical Care Mgmt. Ass’n (No. 18-540), the court held that ERISA does not preempt the state law regulating pharmacy benefit • American Rescue Plan Act, March 11, 2021 managers (PBMs) that “mere
Slide 6: Outbreak period relief
Outbreak period relief Group health plans, participants and other individuals Outbreak period runs from March 1, 2020, until 60 days after the end of the COVID-19 National Emergency Deadlines falling within the outbreak period are Relief for plan participants, beneficiaries, others paused until the
Slide 7: FSA relief — optional
FSA relief — optional Consolidated Appropriations Act and guidance • Carryovers and grace periods. Carryovers for health and dependent care FSAs are uncapped from 2020 into 2021 and 2021 into 2022; health and dependent care FSAs may extend grace periods from 2-1/2 months to 12 months • Limiting age
Slide 8: Dependent care changes — 2021 only
Dependent care changes — 2021 only American Rescue Plan Act Dependent care assistance program (DCAP) Exclusion for employer-provided dependent care, including employee pretax contributions to dependent care accounts, increased from $5,000 to $10,500 (and from $2,500 to $5,250 for a married individua
Slide 9: COBRA subsidy
COBRA subsidy American Rescue Plan Act 100% subsidy Notice requirements For assistance eligible individuals (AEIs) — COBRA qualified Model notices expected by April 10 beneficiaries (covered employees, spouses and dependents) who • General COBRA subsidy notice must be incorporated into all lose (or
Slide 10: Preventing surprise medical bills
The Consolidated Appropriations Act Preventing surprise medical bills provisions protect patients from paying Effective 2022 surprise medical bills to: • OON providers (e.g., ER) Expansive surprise medical bill rules require: • Ancillary service providers (OON • Covering out-of-network (OON) emergen
Slide 11: Transparency requirements: Bringing it all together
Transparency requirements Legend Consolidated Appropriations Act Bringing it all together Transparency-in-coverage rules 2021 plan year • Immediately remove gag clauses on price and 2023 plan year quality information Provide online self-service tool with • File Rx data under new reporting requiremen
Slide 12: Transparency requirements: Employer first steps
Transparency requirements Employer first steps Insured plan Self-funded plan Discovery and planning Discovery and planning Develop inventory of programs subject Develop inventory of programs subject to transparency requirements to transparency requirements Contracting and documentation Contracting a
Slide 13: Pharmacy benefit reporting
Pharmacy benefit reporting Consolidated Appropriations Act Plans report to agencies information from previous plan year. Agencies issue trend report 18 months after the initial plan reporting using aggregate data. Demographics Top 50 Rx Due date • Plan year beginning and end • Brand drugs most frequ
Slide 14: Democrats face major test of unity on next healthcare steps
Democrats face major test of unity on next healthcare steps Progressives, centrists jockey for reforms in American Jobs Plan • Curbing drug prices will be a priority as Democrats draft president’s “infrastructure” package − Progressive Democrats back plan to let government negotiate prices for certa
Slide 15: Retirement benefits
Retirement benefits
Slide 16: American Rescue Plan Act: Relief affecting pension plans
American Rescue Plan Act Relief affecting pension plans • Single-employer funding relief ‒ Extended and expanded interest rate relief ‒ Shortfall amortization relief • Multiemployer relief ‒ Deferral of status updates ‒ Extra time for improvement/rehabilitation plans ‒ Extra time to amortize pandemi
Slide 17: Single-employer funding relief — interest rates
American Rescue Plan Act Single-employer funding relief — interest rates • New 5% floor on 25-year average segment rates • Narrower stabilization corridor • Delayed phase-out • Effective for 2020 plan year ‒ May disregard for 2021 or 2022 ‒ Defer for all purposes or just Section 436 benefit restrict
Slide 18: Single-employer funding relief — interest rates
American Rescue Plan Act Single-employer funding relief — interest rates Plan year Current With relief Minimum Maximum Minimum Maximum 2012-2019 90% 110% 90% 110% 2020 90% 110% 90% or 95% 110% or 105% 2021 85% 115% 85% or 95% 115% or 105% 2022 80% 120% 95% 105% 2023 75% 125% 95% 105% 2024 70% 130% 9
Slide 19: Single-employer funding relief — interest rates
American Rescue Plan Act Single-employer funding relief — interest rates Unadjusted 25-year Segment rates 25-year average with Rates with relief average before ARPA 5% floor (5% corridor) 2020 First 4.04% 3.64% 5.00% 4.75% Second 5.79% 5.21% 5.79% 5.50% Third 6.60% 5.94% 6.60% 6.27% 2021 First 3.90%
Slide 20: Single-employer funding relief — shortfall amortizations
American Rescue Plan Act Single-employer funding relief — shortfall amortizations • Existing shortfall amortization bases reset to zero • New base established equal to funding shortfall • Amortization period permanently extended from seven to 15 years • Effective for 2022 plan year ‒ May elect retro
Slide 21: Single-employer funding relief — awaiting guidance
American Rescue Plan Act Single-employer funding relief — awaiting guidance • How to make elections (and effective date for interest rate elections) • Impact on credit balances • Can contributions be redesignated for other years? • Transition relief for upcoming deadlines (i.e., April 15 quarterlies
Slide 22: Partial plan termination (PPT) relief
Consolidated Appropriations Act Partial plan termination (PPT) relief • PPT may be triggered when employer-initiated terminations exceed 20% of active participants during a year ‒ If it occurs, must fully vest affected participants to the extent benefits are funded • Relief: No PPT for plan years in
Slide 23: Defined contribution (DC) plan disaster relief
Consolidated Appropriations Act Defined contribution (DC) plan disaster relief • Applies to major disasters declared during 2020 and early 2021 ‒ In-service distributions up to $100,000 from DC (including money purchase) plans, regardless of age ‒ Repayment of unused hardship distributions for buyin
Slide 24: Student loan reimbursements
Consolidated Appropriations Act Student loan reimbursements • Employees can exclude up to $5,250 of employer- provided educational assistance from gross income ‒ Tuition, books, fees, supplies, equipment • CARES Act added cash reimbursements of student loans for payments made before Jan. 1, 2021 • C
Slide 25: 420 transfers
Consolidated Appropriations Act 420 transfers • Sponsors of overfunded defined benefit (DB) plans can use excess plan assets to prefund certain retiree health and life benefits • Typically done for one year, but can be done for up to 10 years ‒ Use, vesting and employer cost-maintenance requirements
Slide 26: Regulatory: Department of Labor
Regulatory Department of Labor • Final registration requirements for pooled plan providers • Final rules on selecting retirement plan investments and proxy voting ‒ Biden administration requested review for consistency with climate-change agenda ‒ DOL announced nonenforcement policy in March ‒ Litig
Slide 27: Judicial
Judicial • Fidelity infrastructure fee lawsuit — dismissal upheld on appeal • IBM 401(k) stock drop lawsuit — settled • DB actuarial-equivalence lawsuits ‒ American Airlines dismissed/settled ‒ First class settlement in February (Raytheon) ‒ UPS dismissed, AT&T dismissed but refiled; Anheuser-Busch
Slide 28: Democrats' retirement policy priorities top legislative agenda
Democrats’ retirement policy priorities top legislative agenda Revenue-raisers also in play as American Jobs Plan advances • Democrats’ priorities include: Measure would require substantially all employers to have a retirement plan or an automatic IRA Adopt expanded, refundable Saver’s Credit Help i
Slide 29: Executive rewards
Executive rewards
Slide 30: Tax: 162(m) changes
Tax 162(m) changes • Revenue raiser in American Rescue Plan Act extends coverage of Section 162(m)’s $1 million cap on pay deductibility to include five additional employees, effective for tax years beginning Jan. 1, 2027 ‒ 162(m) covered employees currently are all individuals who served as chief e
Slide 31: Regulatory: Potential changes to SEC rules
Regulatory Potential changes to SEC rules SEC may roll back issuer-friendly rules: SEC may fast-track proposed investor-friendly rules: • Shareholder proposals: SEC rule requiring • Clawbacks (Dodd-Frank): Fast-track SEC rule shareholders to meet more stringent eligibility requiring companies to ado
Slide 32: Regulatory: Diversity, equity and inclusion
Regulatory Diversity, equity and inclusion Pay equity Related developments • Agencies may enhance pay equity Some states (e.g., California) require this type of disclosure disclosure, e.g., EEOC may restore After investor push, ~half of S&P 100 companies agree to disclose Obama program requiring EEO
Slide 33: Human capital management, environmental, social and governance
Regulatory Human capital management, environmental, social and governance Human capital management (HCM) Related developments • SEC may enhance principles-based Form 10-K rule to • Compensation committee responsibilities expand to include require disclosure of specific metrics oversight of HCM • Vol
Slide 34: Mercer resources
Mercer resources
Slide 35: Law & Policy Group
Law & Policy Group www.mercer.com/LawandPolicy Providing timely analysis of relevant legislative, regulatory, judicial and policy developments. Health, Wealth and Global news, views and analysis, written by Mercer legislative, regulatory and policy pros with practical insights for employers, plan sp
Slide 36: Stay informed on coronavirus
Stay informed on coronavirus www.mercer.us/our-thinking/managing-novel-coronavirus.html Copyright © 2021 Mercer LLC. All rights reserved. 36
Slide 37: Get timely insights and commentary on US Health News
Get timely insights and commentary on US Health News Every week on US Health News, Mercer publishes our observations, research and best thinking on the most pressing healthcare issues and the transforming healthcare environment. Sign up for our weekly subscriber email: www.ushealthnews.mercer.com Co
Slide 38: Legal disclaimer
Legal disclaimer Mercer is not engaged in the practice of law, accounting, auditing or medicine. Any commentary in this report does not constitute and is not a substitute for legal, tax, auditing or medical advice or services. Mercer recommends that employers secure the advice of competent legal, ta
Slide 39: SHRM and HCRI credit information
SHRM and HCRI credit information Society for Human Resource Management (SHRM) credits • This program, Activity 21-ED3QK, has been preapproved for 1.0 SHRM professional development credit toward CP and SCP recertification. Human Resources Certification Institute (HRCI) credits • This program, ID No.
Slide 40: Mercer
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