{"id":388,"date":"2010-06-09T08:05:38","date_gmt":"2010-06-09T13:05:38","guid":{"rendered":"http:\/\/pensionblog.com\/?p=388"},"modified":"2010-06-09T08:05:38","modified_gmt":"2010-06-09T13:05:38","slug":"preparing-to-apply-for-the-errp-subsidy","status":"publish","type":"post","link":"https:\/\/viaactuarial.com\/2010\/06\/09\/preparing-to-apply-for-the-errp-subsidy\/","title":{"rendered":"Preparing to Apply for the ERRP Subsidy"},"content":{"rendered":"

We\u2019ve had a couple of initial posts on the new Early Retiree Reinsurance Program (ERRP): the first one<\/a> gave a quick overview of the amount of funds available, while the second post<\/a> described options for spending the reimbursement. In this post, I\u2019d like to give a quick overview of some actions plan sponsors can take now in order to speed up their initial application to participate in the ERRP.<\/p>\n

The ERRP was designed with $5 billion in funding that will be available from June 21, 2010 until January 1, 2014, unless the money runs out first (very likely). So, it\u2019s essentially first-come, first-served for employers who want to claim their share of the funds. In order to participate, however, a plan sponsor must first submit an application for approval by the Secretary of the Department of Health and Human Services.<\/p>\n

As the regulations published on May 5, 2010<\/a> note, it is of \u201cparamount importance to applicants that they submit complete applications upon their first submission.\u201d<\/strong> Rejected applications will go to the \u201cend of the line\u201d for resubmission, and the regs hint these applications might not get reviewed again until it is too late (i.e., the ERRP funds are all gone). Fortunately, once a sponsor has the application accepted, they do not have to reapply in future years.<\/p>\n

The HHS hasn\u2019t released the actual application forms yet, but there are a few important actions that plan sponsors can take now so that they are able to submit their applications as quickly as possible. Plan sponsors should:<\/p>\n