From ChamberChoice The Employee Retirement Income Security Act of 1974 (ERISA) is a federal law that sets minimum standards for established retirement and health and welfare plans in private industry to provide protection for individuals in these plans. ERISA requires plans to disclose certain material, including reports, statements and documents to participants and beneficiaries. One of the most important documents participants must receive when becoming covered under a health plan subject to ERISA is a summary of the plan document, referred to as the Summary Plan Description (SPD). The SPD is probably one of the most misunderstood ERISA required disclosure documents. This misunderstanding can put an employer subject to ERISA at risk to costly problems and potential penalties. This article addresses some of the misunderstandings that some employers maintain regarding the SPD. The information provided by insurers is an SPD: Fact or Fiction? Fiction: The Department of Labor considers the SPD as one of the most important documents required by ERISA. Its importance stems from its role as being the primary informational document provided to participants to inform them of their rights and obligations. The SPD describes how the plan works, what benefits the plan provides, how the plan is funded, and how the benefits are obtained. While the Certificate of Coverage, Benefit Booklet, or Summary of Benefit that an insurer provides may meet some of the required information in an SPD, such as covered or non-covered benefits, it does not include all of the required provisions that must be included in an SPD. Some of those provisions are information regarding the plan sponsor/plan administrator, participation and termination requirements and a participant’s ERISA rights. Therefore, if just providing these insurer’s documents an employer will not be compliant with meeting the SPD requirement. The SPD must actually be distributed to plan participants: Fact or Fiction? Fact: Many employers mistakenly believe that the SPD only must be made available upon request. However, every plan participant who is entitled to benefits under the employer’s plan subject to ERISA is entitled to receive an SPD. The SPD must be distributed in a manner reasonably calculated to ensure actual receipt by plan participants. Therefore, the most acceptable means of delivery would be hand delivery or first class mail. Second or third class mail is acceptable if return and forwarding postage are guaranteed. An employer should always maintain documentation of who received the SPD. Therefore, merely posting the document or leaving it in a location where it can be picked up is not enough. An employer can also deliver the SPD electronically, as long as certain DOL electronic delivery requirements are satisfied. Electronic delivery of documents can be by email or by attachment to email, use of a company website for posting of documents, and provision of documents on magnetic disk, CD-ROM, or DVD. The key issue remains, even with electronic delivery, the plan administrator must ensure actual receipt of the document. Some ways to ensure electronic receipt of an SPD would be to use return-receipt or notice of undelivered or unread email features, or conducting periodic reviews to confirm receipt. Other steps that must be taken by a plan administrator when delivering an SPD electronically are: notice must be provided to each participant at the time the document is provided of the significance of the document; and, the participant must be advised a paper copy will be furnished upon request. My insurer, broker or Third Party Administrator is responsible for an SPD: Fact or Fiction? Fiction: Under ERISA, the plan administrator is responsible for the SPD and any other disclosure requirements. This is true even where another party prepares or distributes the SPD and where that other party has contractually obligated itself to perform such services. Generally the DOL defaults to the plan sponsor, who is the employer, as the plan administrator. Thus, it stands to reason that the employer, and not the insurer, broker or TPA will be responsible for furnishing SPDs and will be liable for failure to furnish adequate SPDs. There are consequences for failing to provide an SPD: Fact or Fiction? Fact: There are no specific penalties in the statute or regulations for failure to prepare or furnish a required SPD. However, under the general enforcement provisions of ERISA, a participant may bring a suit against the plan administrator to enforce the requirement. Likewise, as part of a DOL investigation, the investigator is likely to require the plan sponsor to immediately produce and distribute any required but missing SPDs that are currently applicable. Furthermore, if a participant requests in writing to be provided an SPD, and the plan sponsor fails to provide it within 30 days, the plan sponsor may be charged $110 per day. Finally, the greatest risk to a plan sponsor in failing to distribute SPDs arises when a participant makes a claim for a benefit based on a faulty or nonexistent SPD. This type of dispute can be extremely costly due to exposure for unanticipated benefits in connection with such claims, and court costs in defending such disputes. Conclusion ERISA has been the law of the land since 1974. Although amended several times in the last 40 plus years, it remains the main employee benefit law. Two key requirements for an employer/plan sponsor are the reporting and disclosure requirements. The main disclosure requirement is providing a Summary Plan Description to plan participants describing their rights and obligations. Failure to comply with this ERISA disclosure requirement can result in costly consequences. Thus, prompt production and distribution of SPDs is an often overlooked but crucial aspect of ERISA compliance. Contact your JRG Advisors representative for assistance with an SPD. 
(L-R): Bob Dressler, president, Danville Business Alliance Board of Directors; Fred Gaffney, president, Columbia Montour Chamber; Jim Wilson, executive director, Danville Business Alliance; Tom Forrestal, plant manager, Merck Cherokee; Todd Ross, president, T-Ross Brothers Construction; Sabra Karr, Villager Realty; Tim Karr, president and CEO, Villager Realty; Jay Reed, board member, Danville Business Alliance; Dennis Witmer, foreman, T-Ross Brothers Construction (Photo courtesy of T-Ross Brothers Construction)
On Wednesday, Aug. 9, Columbia Montour Chamber president Fred Gaffney joined a handful of other local business leaders to break ground on Phase Two of Jacob’s Landing, presented exclusively by Villager Realty, an upscale community of luxury townhomes adjacent to the Susquehanna River in Danville. This second phase will add a total of 16 new housing units to the already-existing 12 townhouses in the development. The new units will consist of eight brownstone units and eight riverfront condominiums in a total of three buildings. The contractor for the project is T-Ross Brothers Construction and the architect is ArchCentral Architects.
Located on the north shore of the river, Jacob’s Landing enjoys spectacular views of the river from every one of the new condos. Downtown Danville is a five-minute walk and Geisinger Medical Center is just a five-minute drive away.
“The continued development of Jacob’s Landing will help the continual improvement of the character of Danville and provide an additional much-needed housing option for people in the area,” said Gaffney.
“We are very excited about going forward with this project,” said Tim Karr, president and CEO of Villager Realty. “We are just replicating what you already see on this site from Phase One.”
WNEP-TV was also at the groundbreaking event and filed this report.
(Information from a T-Ross Brothers Construction press release was used in this story)
(Video courtesy of T-Ross Brothers Construction)
Mike Atchie from Williams gives attendees at Tuesday’s Learn at Lunch an overview of the Atlantic Sunrise pipeline project. He also spoke about the WILLShop Local mobile app, which will encourage workers to patronize local businesses and which local businesses and sign up to be listed on for free.
An engaged group of individuals from Chamber member organizations heard the latest updates on the Atlantic Sunrise pipeline project and also about the many opportunities for business development that will be brought about by the pipeline project once it gets underway later this year. Mike Atchie, director of community outreach for Williams, spoke to the group at the August Learn at Lunch, held on Aug. 8 at Wesley United Methodist Church. He began the presentation by giving the audience a brief summary of how and why the project came about and everything that has happened in the three-plus years to get the necessary approvals and permits. Williams is awaiting a few final permits and then plans to get the project started in the fall, taking a about a year to complete. The purpose of the pipeline is to add additional transmission capacity for gas coming out of the Marcellus Shale region in north central Pennsylvania so that the gas can be more easily exported to other states and areas up and down the east coast through the Transco pipeline. According to statistics released last month by the U.S. Energy Information Administration, PA ranked second in the nation in natural gas production for the fourth straight year in 2016.
The Atlantic Sunrise pipeline will run through Columbia County on its way to connect with the Transco pipeline in southern Lancaster County. Some workers that will construct the pipeline in Columbia County will be from outside the immediate area and will therefore need to locate goods and services. In order to encourage its contractors to patronize local businesses during their time here, Williams has developed a mobile application called WILLShop Local and all local businesses are encouraged to sign up, free of charge, to be listed on this app.
The next Learn at Lunch is scheduled for Tuesday, Oct. 10, from 12-1 p.m. (location TBA) and will feature a speakers talking about the ChamberChoice affinity programs that are available as benefits of Chamber membership, specifically the Penn National business insurance program and the OnDemand Energy program.
Member News
PFCU’s new Bloomsburg branch.
Grand Opening and Ribbon Cutting at PFCU Tomorrow
Philadelphia Federal Credit Union (PFCU) will hold a ribbon cutting ceremony tomorrow, Aug. 10, at 11 a.m. at their new branch office located in the Route 11 Marketplace, 1615 Columbia Blvd. (Rt. 11), Bloomsburg. The ribbon cutting will be followed by a public grand opening featuring free food and giveaways, which will run until 2 p.m.
Next First Step Seminar in Bloomsburg Aug. 11
Have you ever thought about starting your own business, but weren’t quite sure if it would be right for you? Or maybe you want to know what paperwork you need in order to open your doors? These and several other common questions for small businesses will covered at the next First Step Seminar given by the Wilkes University Small Business Development Center (SBDC) this Friday, Aug. 11, at noon at the Downtown Bloomsburg, Inc. Business Incubator, 151 E. Main St., Bloomsburg. Laura Haden of the SBDC will speak about the different legal structures a business can be, how to write a business plan and create financial projections, and much more. Cost is $15 for the First Step book. Walk-ins are welcome but pre-registration is preferred. Register by calling 570-408-4334, email or online.
Bucknell SBDC Hosts Cybersecurity Workshop
Are you as secure as you think? Join Michael Frauenhoffer of MePush as he talks about compliance vs. actual security at StartUpLewisburg, 416 Market St., Lewisburg next Tuesday, Aug. 15 at noon. Hosted by the Bucknell Small Business Development Center, this event will also feature local pizza, networking and tours of StartupLewisburg, Bucknell University’s home for innovators and entrepreneurs in downtown Lewisburg. Register here.
Mandated Child Abuse Reporting Training Session Available
Montour County Children and Youth Services will host a free training for individuals who are mandated by law to report suspected child abuse next Thursday, Aug. 17, from 9 a.m.-12 p.m. The training program is put together by the Pennsylvania Family Support Alliance. Though this training is free, pre-registration is required. For more information or to register, fill out this form on the PFSA website. Those registering will receive an email once their registration has been processed, which will include the address for the training location.
Wild For Salmon Hosts Annual Fishtival Aug. 19
Help the crew at Wild For Salmon celebrate the return of its fishing team from its record-breaking season in Bristol Bay, Alaska as it hosts its annual Fishtival on Saturday, Aug. 19, from 10 a.m. – 3 p.m. outside its Bloomsburg store at 521 Montour Blvd. (Rt. 11). Owner Steve Kurian and his crew caught over 100,000 pounds of wild salmon during this year’s fishing season, and with harvest numbers so high, they want to share some with the public. There will be free samples of salmon cooked by Chef Josh and the Wild For Salmon crew, and several other visitors will be on hand to free tastings, including beer and wine samples from fellow Chamber members Turkey Hill Brewing and Freas Farm Winery. There will also be an educational booth this year discussing the importance of preserving the lifeblood of the business, Bristol Bay.
From ChamberChoice
In December 2016, employers faced one of the most dramatic changes in the Fair Labor Standards Act (FLSA) in over 42 years. As a brief background, the FLSA establishes the federal minimum wage for all hours worked (currently $7.25 an hour), and overtime premium pay at one and one-half times an employee’s regular pay rate for worked hours exceeding 40 in one work week. The FLSA also exempts from overtime payments “any employee employed in a bona fide executive, administrative, or professional capacity”, generally referred to as the white collar exemption. Two of the three criteria for an employee to meet the white collar exemption is that the employee must be paid on a salary basis, and the salary must meet a minimum specified salary amount. The latter is known as the salary level test. The salary level test has been set at $455 weekly or $23,660 annualized, for some time.
In 2016, the Department of Labor under the Obama Administration increased the salary level test, more than doubling it, to $47,476 per year. This new salary threshold would have drastically expanded the number of employees eligible for overtime pay. Although scheduled to be effective December 1, 2016, causing a panic attack with employers, it was blocked from enforcement, when a nationwide preliminary injunction was issued by a federal court in Texas (which is in the Fifth Circuit). The preliminary injunction was appealed and is still pending today.
However, what the Trump Administration’s Department of Labor has decided to do is ask the Court not to address the validity of the 2016 rule and salary level test. This will give the DOL an opportunity to revisit the issue through new rulemaking. This request is in line with President Trump’s charge for federal agencies to review regulations with a focus on lowering regulatory burden.
On July 25, the DOL 25 issued a Request for Information (RFI). An RFI is an opportunity for the public to provide data and information that may be used to revise a rule. The RFI seeks comments on a variety of topics under the FLSA, but basically focusing on the salary level test which has been on hold.
Some of the issues for which the RFI seeks comment are:
- Whether the salary test should be updated based on inflation;
- Whether there should be a multiple salary level test and whether differences in employer size or locality should matter;
- What the impact of the 2016 rule was and did employers make changes in anticipation of the rule;
- Were specific industries/positions impacted more than others;
- Was the provision permitting 10% of the salary level test to be satisfied with bonuses appropriate; and
- Should the salary levels be automatically updated?
Of course, the merit of these comments will be dependent on the Fifth Circuit’s decision on whether the salary test is permissible to begin with. A favorable determination will provide the Department with information to proceed on a new rulemaking. Employers should continue to watch this issue until finalized.
U.S. Senator Bob Casey heard about the challenges of local businesses at a roundtable meeting held Monday in Danville. Common themes among the participants included the cost of health insurance, challenges of recruiting employees, lack of broadband in rural areas, and burdensome regulations. The meeting was organized by the Danville Business Alliance and held at Old Forge Brewing Company.
The approximately 30 attendees represented a cross-section of business types including members: Bason Coffee Roasting, Pine Barn Inn, G.S. Woods Financial Solutions, U.S. Gypsum, and Danville Child Development Center. Recruiting quality employees continues to be a challenge for all sizes and types of employers. Specific issues cited at the roundtable included the need to support skilled trades education, wages levels, and the inability for small businesses to afford health insurance coverage for their employees.
Following the recent failed attempts at repealing and replacing the Affordable Care Act, Senator Casey stated that there have been “more positive discussions about health care in the last ten days than in the last ten months.” He expects that targeted reforms to the existing legislation will advance in September. Improving the affordability of health insurance for small business owners and their non-subsidized employees will take longer, he admitted.
Another widespread hindrance to business growth is burdensome regulations. Larger employers talked about excessive environmental regulations while smaller employers asked for clarification on how certain rules might apply to their businesses. Legislation has already passed the House and has been introduced in the Senate (S. 951) which would require more public input and transparency in government agency rulemaking. The U.S. Chamber of Commerce and PA Chamber of Business and Industry are supporting this legislation. Senator Casey did not express his opinion on the bill.
Lack of broadband internet access in rural areas such as northern parts of Montour and Columbia counties also prohibits business development. The Senator has petitioned the Federal Communications Commission to keep federal dollars intended for infrastructure expansion in Pennsylvania. He feels that a long-term solution is a nationwide infrastructure enhancement package. The Columbia Montour Chamber has advocated for improved broadband and telecommunications infrastructure to both federal and state legislators.
Senator Casey thanked the participants for their input and pledged follow up on a number of specific questions.
More than 400 businesses and organizations belong to the Chamber to receive benefits and support efforts to strengthen their businesses and our region. Increased membership allows us to offer additional programs and benefits, have a stronger voice in advocacy and be involved in more activities and initiatives in our communities. The Chamber welcomes its newest member, Comfort Keepers, to help us fulfill our mission.
Comfort Keepers is a national company made up of franchises that provide in-home, non-medical care for seniors and other adults. Locally, the Bloomsburg office, located at 7185B Columbia Blvd. (Rt. 11), is one of several offices run by the local franchise group, which also has offices in Allentown, Bethlehem, Hazleton, Drums, Pottsville, Quakertown, Shenandoah, Stroudsburg, Sugarloaf and Wilkes-Barre. Comfort Keepers caretakers provide personal care services such as bathing, grooming and hygiene, mobility assistance, transferring and positioning, feeding, dementia care and medication reminders. Caretakers also can provide companionship, meal preparation, laundry services, light housekeeping, grocery shopping and respite care or relief for family members. Comfort Keepers in Bloomsburg services all of Columbia County. For more information, call 888-450-0890 or visit its website.
Students from throughout the region can attend the Central Columbia School District’s award winning, state-of-the-art Career Pathway high school free of charge to parents. By enrolling in a state-approved program at Central, students whose home school district does not offer that program may attend Central Columbia. The approved programs are three or four-year programs in agriculture operations and agriculture mechanization and three-year programs in engineering and accounting.
Incoming freshman may apply for admission in the two agricultural programs and incoming 10th graders may apply for admission to engineering, accounting or the two agricultural programs. Once admitted, students must stay in an approved program and make progress toward graduation. Enrolled students are fully recognized students at Central Columbia High School and may participate in all courses, activities and extra-curricular programs.
From the student’s and parent’s perspective, these programs work similar to programs at Columbia-Montour Vo-Tech where the student is enrolled in that school full time. The difference is that the programs are hosted by Central Columbia.
Central Columbia High School’s community open house is Sunday, Aug. 20, from 2-4 p.m. when all community members and interested parents and students may tour the building.
Interested parents and students should contact Chris Snyder or Jeff Groshek at the high school office at 570-784-2850, ext. 1000 to schedule a private tour and meeting to discuss the options. The school year begins August 24, so act quickly if interested.
The U.S. Energy Information Administration (EIA), in its recent short-term energy outlook report, predicts that in 2017, natural gas will either exceed or equal coal as a source of electricity generation for the second straight year. Last year was the first that natural gas-fired electricity generation exceeded coal-fired generation, with coal generating 30% of U.S. electricity and natural gas responsible for 34%. In 2017, through the first four months, coal has provided 30% of U.S. electricity while natural gas has provided 28%, and the EIA expects that by the end of the year, both coal and natural gas will have each generated about 31% of the electricity in the U.S.
The EIA also recently released statistics that showed Pennsylvania as ranking second in the nation in natural gas production for the fourth straight year. Natural gas is a big part of the PA economy, and locally, a new natural gas pipeline is scheduled to get underway later this year. It will have an estimated economic impact of $85.5 million for Columbia County alone, and $1.6 billion for all of the project’s regions. The Atlantic Sunrise pipeline will expand the Transco gas pipeline system with a new pipe approximately 185 miles long connecting the existing pipeline just north of Columbia County to southeast Pennsylvania, which will allow for more efficient transportation of Marcellus Shale natural gas and should enable even more to be exported.
Williams is also encouraging all workers that come into the area to work on this project to patronize local businesses. More information about the opportunities for local businesses related to this pipeline project will be available at the Chamber’s next Learn at Lunch, sponsored by PPL Electric Utilities, this Tuesday, Aug. 8, at noon at Wesley United Methodist Church. Mike Atchie from Williams will talk about the different types of opportunities for local businesses to cater to the visiting workers and give an overall update on the project at this event. The cost to attend this event is $10 for lunch and those interested can register here.
From Bloomsburg Police Department
The Bloomsburg Police Department would like to notify motorists of pending parking restrictions on Main St. in Bloomsburg. These parking restrictions will be in effect for a micro-paving project contracted by PennDOT. The paving is scheduled to take place during the following nights.
Monday August 7, 2017; Parking WILL NOT be permitted on Main Street between East Street and West Street from 6:00 PM to 6:00 AM.
Tuesday August 8, 2017; Parking WILL NOT be permitted on Main Street between East Street and West Street from 6:00 PM to 6:00 AM.
Wednesday August 9, 2017; Parking WILL NOT be permitted on West Main Street between West Street and Ft. McClure Blvd. from 6:00 PM to 6:00 AM.
Any vehicles found parked in these locations during the date and time when parking is prohibited will be subject to ticketing and towing at the owners expense.
Motorist are encouraged to use the public municipal parking lots off of Main Street while visiting downtown Bloomsburg.
For questions contact the Bloomsburg Parking Enforcement Office or the Bloomsburg Police Department.