Recent Alerts
Department of Labor Provides Updated Information on COBRA Subsidy Extension
The Department of Labor's Employee Benefits Security Administration has posted new information on the COBRA web page adding an updated fact sheet, FAQS for employees, and posters and flyers updated for the provisions extending the ARRA premium reduction in the Department of Defense Appropriations Act, 2010. The newly update model notices are also now available. Those model notices must be sent out by February 17, 2010.
President Signs Extension to COBRA Subsidy 12.22.09
An extension of the COBRA premium subsidy initially enacted under the American Recovery and Reinvestment Act of 2009 (ARRA) was signed into law by President Obama on December 19, 2009. Under ARRA, “assistance eligible individuals” or AEI’s (individuals experiencing an involuntary termination and a loss of health coverage between September 1, 2008 and December 31, 2009) were eligible for a 65 percent subsidy of COBRA premiums for up to 9 months. The Department of Defense Appropriations Act of 2010 (DOD Act) amends ARRA in several key ways.
Eligibility Period Extended. The DOD Act extends the COBRA premium subsidy eligibility period from December 31, 2009 to February 28, 2010. In addition, prior to amendment, to qualify as an AEI, ARRA required that both the individual’s termination from employment and the loss of health coverage occur during the relevant eligibility period. Under the DOD Act, only the qualifying termination from employment, not the loss of coverage, must occur on or before February 28, 2010. Thus, an individual who is terminated on February 10, 2010, but who will not lose health coverage until March 1, 2010, will qualify for the subsidy.
Subsidy Period Lengthened. Prior to amendment, individuals could obtain a subsidy for up to 9 months. That period has been lengthened to 15 months.
Subsidy Extension Retroactive. The DOD Act provides that the subsidy extension is retroactive. Individuals who previously qualified for the subsidy will now be eligible for up to 15 months. If an individual continued on COBRA after the original subsidy period by paying the full premium, the excess premium must be refunded or credited back to the individual. Individuals who terminated COBRA at the end of the original subsidy period will have an opportunity to restart COBRA at the subsidized rate retroactive to when the individual stopped paying for coverage.
New Notification Obligations. The DOD Act also imposes several new notification obligations on employers, including:
- Any individual who was eligible for the COBRA premium subsidy on orafter October 31, 2009, or who is voluntarily or involuntarily terminatedon or after that date, must be notified of the subsidy extension no later than February 17, 2010. Notice to individuals who become eligible for the COBRA premium subsidy after December 19, 2009 should be given pursuant to the general timing notification rules of COBRA.
- Any individual who was eligible for the COBRA premium subsidy, but who was either dropped from coverage for failure to pay a COBRA premium or who paid the full premium after the subsidy was exhausted, must be provided with notice of the subsidy extension and the right to re-start COBRA by February 17, 2010.
The DOD Act did not change the remaining provisions of ARRA, including the coverage to which the subsidy applies, the events that terminate eligibility for the subsidy, income limits for the subsidy, or the process by which the subsidy is obtained.
Additional information regarding the COBRA Subsidy can be found under Legal Reference Articles, Employment Issues.
[TOP]
IRS Announces 2010 Standard Mileage Rates
The Internal Revenue Service on December 3, 2009 issued the 2010 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical, or moving purposes.
Beginning on January 1, 2010, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:
- 50 cents per mile for business miles driven
- 16.5 cents per mile driven for medical or moving purposes
- 14 cents per mile driven in service of charitable organizations
In 2009, the standard mileage rates were: 55 cents per mile for business use, 24 cents per mile driven for medical or moving purposes and 14 cents per mile driven in the service of charitable organizations.
[TOP]
Congress Expands FMLA for Military Families
On October 28, 2009, President Obama signed into law the Fiscal Year 2010 National Defense Authorization Act (H.R. 2647. This new law included an expansion of the recently-enacted exigency and caregiver leave provisions for military families under the Family and Medical Leave Act of 1993 (FMLA).
Current Law: Exigency leave—up to 12 weeks of leave for urgent needs related to a reservist family member’s (spouse, son, daughter, or parent) call to active service.
H.R. 2647 expands the exigency leave benefits to include family members of active duty service members. Under current law, only family members of National Guard and Reservists are eligible for “exigency leave.
Current Law: Caregiver leave—up to 26 weeks of unpaid leave to an employee to care for a family member (spouse, son, daughter, parent, or next of kin) who is injured while serving on active military duty.
H.R. 2647 expands the caregiver leave provision to include veterans who are undergoing medical treatment, recuperation or therapy for serious injury or illness that occurred any time during the five years preceding the date of treatment.
H.R. 2647 also revises the definition of "serious injury or illness" for active duty members and provides a slightly different definition for veterans. Both are now defined to include an injury or illness that existed before the beginning of the member's active duty and was aggravated by service in the line of duty on active duty in the Armed Forces. And, for veterans, the definition further adds that the injury or illness may manifest itself before or after the member became a veteran.
To be eligible for the leave, employees must work in organizations of 50 or more employees and work at least 1,250 hours in a 12-month period. This law goes into effect immediately!
[TOP]
U.S. Department of Education Updates State Regulation of Private Schools Report
The U.S. Department of Education’s Office of Non-Public Education (ONPE) has updated the report, State Regulation of Private Schools, which provides
brief descriptions of state requirements that apply to K–12 private schools. The intent of the report is to serve as a reference for public and nonpublic school officials, state policy-makers, researchers, and others. This report is an update of the 2000 publications, which in turn was an update of the 1993 publication, The Regulation of Private Schools in America: A State by State Analysis.
Topics Included in the Report
- Accreditation/Registration/Licensing/Approval
- Teacher Certification
- Length of School Year/Days
- Curriculum
- Recordkeeping/Reports
- Health and Safety Requirements
- Transportation
- Textbooks
- Testing
- Special Education
- Nursing and Health
- Technology
- Professional Development
- Reimbursement for Performing State/Local Functions
- Tax Exemption
- Public Aid for Private Education
- Homeschooling
- Information Resources
In addition, charts summarizing key information from the report are included at the end of the report.
[TOP]
U.S. Department of Education Releases ARRA Title II, D, ED Tech Funds and Accompanying Guidance
The U.S. Department of Education has released the Title II, D,
Enhancing Education through Technology (ED Tech) funds, which are made available under the American Recovery and Reinvestment Act of 2009 (ARRA). Aimed at improving student academic performance through the effective use of technology, the ED Tech program requires the equitable participation of private school students and teachers in both the formula and competitive grant programs.
Along with the release of these funds, the Department issued accompanying
ARRA Guidance on ED Tech Program Funds. Allowable services under the ED Tech program may include computer equipment, software, and professional development for teachers.
Private school officials interested in the ED Tech program should review this guidance and contact their local education agency (LEA) to inquire about the LEA’s plans regarding the program, the timely and meaningful consultation requirements, and equitable participation of their students and teachers.
[TOP]
U.S. Department of Education Issues ARRA Guidance
On April 1, the U.S. Department of Education issued guidance related to
the American Recovery and Reinvestment Act of 2009 (ARRA). The guidance is intended to assist SEAs and LEAs with implementing the provisions of the Act and includes a number of questions about services to students in private schools.
Guidance on ARRA Funded Title I, Part A Services Related to Private School Students
Title VIII of ARRA includes provisions related to Title I, Part A of the Elementary and Secondary Education Act (ESEA) The ARRA Title I, Part A provisions require the equitable participation of eligible private school students and teachers. Section D of the ARRA Title I, Part A guidance focuses on the benefits available to such students and teachers, and includes three questions that address these issues: D-6, D-7, and D-8. This guidance emphasizes the need for timely and meaningful consultation prior to any decisions being made about the provision of equitable services for eligible private school students.
Guidance on ARRA Funded IDEA Services to Parentally Placed Private School Students with Disabilities
Title VIII of ARRA includes provisions related to the Individuals with Disabilities Education Act (IDEA). The ARRA IDEA, Part B provisions require that equitable services be provided to eligible children with disabilities enrolled by their parents in private schools. Section F of
ARRA IDEA, Part B guidance focuses on the benefits available to parentally placed children with disabilities and includes three questions, F-1, F-2, and F-3. The consultation process is highlighted in this guidance.
Guidance on ARRA SFSF and Services to Private School Students
Title XVI of ARRA addresses the State Fiscal Stabilization Fund (SFSF). The SFSF guidance includes questions related to private school students. Question III-D-15 states that ARRA does not require an LEA to provide equitable services to private school students with SFSF funds, however, the LEA may provide services for private school students and teachers to the extent that the activities are authorized by the ESEA, the IDEA, the Adult Education and Family Literacy Act, or the Perkins Act. Question III-D-2 and IV-3 clarify that no stabilization funds may be used to provide financial assistance for students to attend private elementary and secondary schools unless the fund are used to provide special education and related services to children with disabilities as authorized under IDEA.
Information provided by the DOE's Office of NonPublic Education.
[TOP]