Temporary Extension Act of 2010 (H.R. 4691)
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On Tuesday, March 2, 2010, President Obama signed into law the Temporary Extension Act of 2010 (H.R. 4691) which temporarily extends the COBRA premium subsidy program and emergency unemployment compensation program, along with other programs which had expired on February 28, 2010. Under the Act, the 65% federal COBRA premium subsidy for involuntarily terminated employees is temporarily extended from March 1, 2010 through March 31, 2010. Without this extension, employees involuntarily terminated after February 28, 2010 would not have been eligible for the subsidy. The Act also allows certain individuals who are involuntarily terminated, after they experience a qualifying event of reduction in hours, to be eligible for the COBRA premium subsidy. The emergency unemployment compensation program is temporarily extended through April 5, 2010.
The Senate is also considering a longer extension of the COBRA premium subsidy in a separate bill in the coming weeks, which would extend the program through December 31, 2010.
This Employer Alert summarizes key provisions of the Act at this time; we will continue to monitor developments as they occur and report additional information as provisions are clarified in the coming weeks. In the interim, the Sullivan Benefits team is available to assist you in understanding and implementing these new provisions.
Sullivan Benefits clients receive COBRA administration services at no additional cost. Whether you currently utilize this service or not, please note we are working on system modification changes with our software vendor, Travis Systems. New model notices, forms, etc. will be available to you as soon as these changes have been implemented. .
As always, please contact us with any questions or assistance in complying with the new COBRA regulations. |
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Needham Heights Office:
72 River Park · Needham Heights, MA 02494-2631
Phone: 781.449.8323 · Fax: 781.449.5419
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Phone: 508.471.9017 · Fax: 508.797.3689
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