San Jose, CA — Feb 17, 2009 — President Obama signed into law the American Recovery and Reinvestment Act (ARRA), which includes several important changes to Commuter Benefits under a cafeteria plan and COBRA.

The ARRA provides for a federal subsidy of 65 percent of the COBRA continuation coverage premiums for qualified beneficiaries receiving COBRA continuation coverage due to the covered employee's involuntary termination of employment between September 1, 2008, and December 31, 2009.

Please see the attached overview for more details and contact Thoits Insurance for more information.

Forms:

• Thoits Compliance Update
• Fact Sheet from the Department of Labor
• IRS Instructions
• IRS Form
  

About Thoits
Established in 1891, Thoits Insurance is a regional California insurance brokerage, employee benefits and risk management consulting firm owned by its employees. Thoits serves the needs of the Bay Area’s peninsula and Silicon Valley by determining risks in all areas of business and protecting its clients against these risks.

RETURN TO ARTICLES AND PRESS RELEASES >