DOL Announces Delay in Effective Date of Proposed COBRA Regulations

As reported by ProBusiness, a Division of ADP National Accounts (ProBusiness) in June 2003 Tech Flex, the DOL, on May 28, 2003, released proposed revised regulations in relation to the Consolidated Omnibus Budget Reconciliation Act (COBRA) notice requirements. At the time of the release of the proposed regulations, the DOL stated it "proposes to make these regulations, in their final form, effective and applicable as of the first day of the first plan year that occurs on or after January 1, 2004."

On September 17, 2003, the DOL released a communication (USDL 03-26), stating that these final COBRA regulations are expected to be issued early next year. Further, Ann L. Combs, Assistant Secretary of Employee Benefits Security Administration (EBSA) stated that "the department intends to give group health plans six months after adoption of final rules to implement administrative changes required by the new rules."

Consequently, until the final rules are released and can be implemented, ProBusiness will continue to administer the notice requirements in accordance with the current regulations. As usual, ProBusiness will continue to monitor the COBRA regulatory and legal environment closely and inform you, via future issues of the Tech Flex, of pertinent developments surrounding this matter.

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Please contact ProBusiness for further information at:
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Phone: (425) 415-4000 Fax: (800) 269-5231
e-mail: bsa@probusiness.com

(ProBusiness does not make any representation or warranty that the information contained in this newsletter, when used in a specific and actual situation, meets applicable legal requirements. This newsletter should not be construed as legal advice. Your legal counsel should be consulted on all specific fact situations.)

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