Conduent Incorporated · NASDAQ:CNDT
Conduent — CARES Act Webinar (April 2020)
20 slides from Conduent's conference presentation, Apr 3, 2020
Slide 1: CARES Act: An Overview
CARES Act: An Overview Conduent Human Resources and Learning Solutions April 3, 2020
Slide 2: This presentation does not constitute legal advice
This presentation does not constitute legal advice. Please direct specific questions regarding your circumstances and the applicability of these regulations to your legal counsel. Information and webinar provided for educational use only. This presentation does not constitute legal advice. Please di
Slide 3: Agenda
Agenda Today’s Session CARES Act Defined Contribution • Eligibility for Relief • Withdrawals • Loans • Required Minimum Distributions Defined Benefit • Funding • Restrictions due to Funded Status Health and Wellness • CARES Impact on HSA/HRA/FSA • IRS Guidance Q&A This presentation does not constitu
Slide 4: Our Conduent Team of Experts
Our Conduent Team of Experts John Larson Nearly 15 years defining and developing innovative solutions in the Wealth and Retirement space across DB, DC, Financial Wellness and Total Rewards Nationally recognized expert, speaker, author on consumer-directed health accounts. Board Todd Berkley member f
Slide 5: CARES Act
CARES Act Coronavirus Aid, Relief, and Economic Security Act (CARES Act) • Signed into law March 27, 2020 • Sweeping relief related to the COVID-19 pandemic • Mostly DC provisions • DB and Health Account provisions This presentation does not constitute legal advice. Please direct specific questions
Slide 6: Defined Contribution
Defined Contribution Three main relief areas: Plan sponsors generally have until end of 2022 plan year to amend Withdrawal and loan relief available only to individual: • Who is diagnosed with virus SARS-CoV-2 or coronavirus Required disease 2019 (COVID-19) by a test approved by Centers for Disease
Slide 7: Withdrawals
Withdrawals Option to offer “coronavirus-related Withdrawal features distribution” of up to $100,000 • Exempt from 10% penalty on premature distributions, • Subject to availability of funds in participant’s account regardless of age or status • Available to any participant (including beneficiaries •
Slide 8: Withdrawals
Withdrawals Treatment available for distributions January 1 through December 31, 2020 • Sponsor responsible for ensuring limit is administered across all plans of controlled group, not responsible for tracking amounts distributed outside the controlled group • Individual taxpayer responsible for mon
Slide 9: Withdrawals: Things to Consider
Withdrawals: Things to Consider If offering option: • Define available money types • Determine distribution hierarchy Assess plan materials to identify needed updates • Confirmation statements • Distribution statements • Web text • CSR FAQs Develop Communication strategy This presentation does not c
Slide 10: Loans
Loans Two types of relief available, only to Increased Loan Amount participants who meet the specified At discretion of sponsor, maximum loan amount can criteria be increased from • lesser of $50,000 or 50% of available balance to as much as • lesser of $100,000 or 100% of available balance Relief a
Slide 11: Loans
Loans Loan Repayment Delay Repayments due between enactment and 12/31/20 can be delayed • Applies even for loans requested prior to enactment • Subsequent repayments must be adjusted to reflect delay and interest on delay • Delay period isn’t counted when assessing five year limit • Appears that spo
Slide 12: Required Minimum Distributions (RMDs)
Required Minimum Distributions (RMDs) 2020 RMD payments from DC plans and • Includes payments to participants with a Required Beginning Date (RBD) of 4/1/2020 IRAs are waived - 2019 first-timers who did not receive RMDs in 2019 eligible for waiver - remains April 1, 2020, which could affect RMDs fro
Slide 13: Required Minimum Distributions (RMDs)
Required Minimum Distributions (RMDs) Plan sponsors can still require payments to participants in accordance with the plan document Plan sponsors can still permit payments to participants, which may be only way for some participants to access funds without final distribution Ongoing plan installment
Slide 14: Defined Benefit
Defined Benefit Funding Relief Funded Status All single-employer plan funding obligations, including • Sponsor may elect to apply plan’s adjusted funding quarterly contributions, due during 2020 target attainment percentage (AFTAP) for plan year • Can be deferred until January 1, 2021 ending in 2019
Slide 15: IRS Guidance Regarding HSAs
IRS Guidance Regarding HSAs IRS Notice 2020-15 • Confirms testing/treatment of COVID-19 considered “preventive care” and may be covered by HDHPs without cost sharing prior to the satisfaction of the annual deductible and without impacting eligibility • Individuals enrolled in HSA-eligible HDHPs that
Slide 16: CARES Act: Health Account Impacts
CARES Act: Health Account Impacts Health Savings Accounts (HSAs) Section 3701: Telehealth • Allows HSA-qualified HDHPs to cover telehealth services prior to meeting annual deductible and without impacting eligibility • Set to end December 31, 2021; check with current health insurance provider to ful
Slide 17: Other Health and Wellness Considerations
Other Health and Wellness Considerations • Updates to SBCs and other communications to reflect coverage of COVID-19 testing, vaccination and preventive services • Extension of due dates and grace periods for direct bill and dependent verification processes • Benefit enrollment changes: • spouse empl
Slide 18: Q&A
Q&A This presentation does not constitute legal advice. Please direct specific questions regarding your circumstances and 4/7/2020 18 the applicability of these regulations to your legal counsel. Information and webinar provided for educational use only.
Slide 19: Contact Us
Contact Us Todd Berkley Health Accounts [email protected] Rachel Defined Contribution [email protected] Kugelmass Defined Benefits [email protected] Don Saccente Monika Health & Wellness [email protected] Reninger General General Inquiries / Information CAR
Slide 20: © 2020 Conduent, Inc. All rights reserved
BR2867 © 2020 Conduent, Inc. All rights reserved. Conduent and Conduent Agile Star are trademarks of Conduent, Inc. and/or its subsidiaries in the United States and/or other countries.