11 minute read
A look at the three R’s: RGGI, regulations and redistricting
Carl A. Marrara is the vice president of Government Affairs at the Pennsylvania Manufacturers’ Association. For more information, visit www.pamanufacturers.org.
Five months ago, Governor Wolf proposed a 50-percent personal income tax increase, an almost doubling of the state minimum wage, another tax on natural gas production, mandatory unitary combined reporting and other uncompetitive ideas. The General Assembly pushed back and awaited promised state assistance from the federal government before proposing a plan. The $7.2 billion from the feds is not recurring and ought to be used on one-time expenditures that create jobs and economic activity that will then lead to private sector activity for enhanced tax collections for years to come. The use of federal stimulus dollars for recurring expenditures will cause issues in budget cycles in two years when those dollars are no longer available. As Governor Wolf prepares for his final year in office, expect the boundaries of executive order to be pushed. The General Assembly has shown no signs of enacting items that have been themes throughout his seven years in office. The fall legislative session will likely be focused on “three R’s:” the Regional Greenhouse Gas Initiative (RGGI), Regulations and Redistricting. The General Assembly acted on the RGGI cap-and-tax scheme being entered into unilaterally by Governor Wolf and the Department of Environmental Protection. Senate Bill 119 (Senator Joe Pittman) and House Bill 637 (Representative Jim Struzzi) are the first attempts to enact policy that would give the General Assembly the means intended to control, or limit carbon dioxide emissions by imposing a revenue-generating tax or fee on carbon dioxide emissions.
Several experts believe that Governor Wolf lacks the authority to impose this tax, since taxing authority is the duty of the General Assembly as defined by the Pennsylvania Constitution. There is no expressed power that allows for a governor to unilaterally enter into a multistate accord. To solidify this separation of powers, this legislation is a first-step to ensure the General Assembly has its seat at the table and the first of many votes to combat RGGI. On broader regulatory reform, the pandemic has inspired new momentum when many rules were temporarily suspended by executive order via emergency declaration. An overview of the impact of these changes is needed. As a remedy, Representative Kate Klunk and Senator Kristin Phillips-Hill have legislation establishing the “Office of the Repealer.” Klunk stated, “At the start of the pandemic, the Wolf administration suspended numerous regulations to improve the flow of goods to residents. This clearly shows businesses and residents can act safely and responsibly without some of the more than 153,000 regulations currently on the books. If we can do without certain regulations during the time of a crisis, surely we can do it during more normal times.” Other proposed regulatory reform measures are in the midst of the legislative process. Excess regulation has been a focus of both chambers in restarting Pennsylvania’s economy coming off the damage done by pandemic mitigation efforts. On redistricting, Pennsylvania will lose one congressional seat. The 17 remaining districts will draw national attention as the possible difference-maker in control of the U.S. House of Representatives. Also up for reapportionment are the 50 PA Senate and 203 PA House Districts. Navigating redistricting will be a study in political science since the PA Supreme Court redrew previously approved maps in 2018. How the newly untested powers of the courts will interplay with the proceedings of the General Assembly, as the U.S. Constitution charges, will be a constitutional law case study. Other topics will include elections improvements, corporate and small business tax competitiveness and lawsuit abuse reforms. To stay current on state government, rely on the analysis provided by the MBA and its allies including the Pennsylvania Manufacturers’ Association at www.pamanufacturers.org.
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To find out more about our EAP services or any of our services visit work.partners/mba For more about the MBA/Workpartners partnership, contact Keith Eller at ellerk@workpartners.com
analytics | advocacy | absence | technology
Disability in the United States: The Benefits of Supplemental Insurance
The need for some sort of income assistance when dealing with a disability is more common in the United States than you might think. According to the Council for Disability Awareness: • One in four Americans live with some form of disability. • More than one in four 20-year-olds can expect a disability to make them unable to work for a year or more before they retire. That’s why supplemental insurance like short-term and long-term disability insurance are such valuable benefits. Each provides an employee with a portion of his or her income while they are out of work with a disability. This can vary from anything from permanent paralysis — a case for long-term disability coverage — or acute anxiety, for which short-term disability could be invaluable. While the Family Medical Leave Act and Americans with Disabilities Act may provide an individual with certain job protections during periods of disability, it’s the financial security that makes short-term and long-term disability insurance so critical. “Depending on the severity of the disability, as well as the duration, that could be financially devastating,” says Liz Supinski, the Society for Human Resource Management’s director of research projects and insights. “If the disability prevented you from working long-term, it could permanently impact your earning potential.” Disability gives employees peace of mind — and employers an attractive benefit. Businesses can even customize their short-term disability insurance policy to be a stand-alone plan, complement an employer-paid short-term disability plan or work with a long-term disability plan to help ensure continuity of coverage. Visit https://lifelime.thehartford.com/ to read more from the experts at The Hartford.
Sara Fetchko, GBDS, VBS, is the client relationship manager for Group Benefits at The Hartford Financial Services Group, Inc. in Pittsburgh. For more information, visit www.thehartford.com.
EXPERTS: TRUCK DRIVER SHORTAGE IMPACTED BY PERFECT STORM
Trucking officials say that, for a variety of reasons, there has been a deficit of truck drivers across the country for more than a decade. But with the economy reopening, e-commerce growing by leaps and bounds, and the lingering COVID-19 setbacks, it has all combined to create what some may call the perfect storm. “It’s as bad as we’ve ever seen it,” said American Trucking Associations (ATA) Chief Economist Bob Costello. The trucking industry is working to meet the demand, but it is only expected to continue to increase. According to the ATA more than 1 million truck drivers will be needed to answer America’s supply chain challenges.
FLEXIBILITY, SUSTAINABILITY TOP LOGISTICS PRIORITIES, SURVEY SHOWS
A growing number of logistics companies plan to invest in technologies that provide convenient, efficient and sustainable order fulfillment. According to a new survey of high-level logistics executives from retail and supply chain enterprise software provider Blue Yonder, 59 percent of respondents, including 71 percent of those in consumer manufacturing, plan to offer flexible delivery windows for online orders to maximize sustainability throughout the supply chain. Close to half (48 percent) of all respondents plan to implement and/ or enhance their warehouse management systems (WMS) and cloud infrastructure (48 percent). In addition, 38 percent of respondents said that maintaining and optimizing convenient fulfillment options (such as curbside pickup, BOPIS, at-home delivery) is the most important factor for enhancing consumer experiences post-COVID-19. Other technologies respondents plan to implement or enhance include: • Artificial intelligence (AI) and/or machine learning (ML) 42 percent; • Sales and operations planning (S&OP) and/or sales and operations execution (S&OE) 42 percent; and, • Transportation management systems (TMS) 41percent.
An assistance eligible individual (AEI) is any individual who is: 1) a qualified beneficiary as the result of a) the reduction of hours of a covered employee’s employment or (b) the involuntary termination of a covered employee’s employment (other than by reason of an employee’s gross misconduct), 2) is eligible for COBRA continuation coverage for some or all of the period beginning on April 1, 2021, through September 30, 2021, and 3) elects the COBRA continuation coverage.
This includes qualified beneficiaries who are the spouse or dependent child of the employee who had the reduction in hours or involuntary termination of employment resulting in a loss of coverage, as well as the employee, if that reduction in hours or involuntary termination of employment caused the qualified beneficiary to lose coverage and the other requirements are satisfied.
MAY AN EMPLOYER REQUIRE INDIVIDUALS TO SELF-CERTIFY OR ATTEST THAT THEY ARE ELIGIBLE FOR COBRA CONTINUATION COVERAGE WITH COBRA PREMIUM ASSISTANCE?
Yes. Employers may require individuals to provide a self-certification or attestation regarding their eligibility status with respect to a reduction in hours or involuntary termination of employment, which may assist the employer in substantiating its entitlement to the credit.
Employers are not required to obtain a selfcertification or attestation; however, employers who claim the credit must retain in their records either a self-certification or attestation from the individual regarding the individual’s eligibility status, or other documentation to substantiate that the individual was eligible for the COBRA premium assistance.
IRS Rolls Out Guidance on American Rescue Plan’s COBRA Subsidy
The Internal Revenue Service (IRS) issued guidance on the American Rescue Plan Act (ARPA) to help employers navigate the changes on COBRA with the recently enacted American Rescue Plan Act of 2021 (ARPA). The ARPA, signed into law on March 11, 2021, included a subsidy that covers 100 percent of COBRA and state mini-COBRA premiums from April 1 through September 30, 2021. The subsidy allows for certain assistance-eligible individuals whose work hours were reduced or whose employment was involuntarily terminated to have their COBRA premiums paid by the employer/plan sponsors. The 40-page guidance document issued on May 18, 2021 includes multiple questions and answers that detail how to calculate the tax credit, including when a third-party payer is involved and includes information on who qualifies and how long. The subsidy is funded via a tax credit provided to employers, insurers or group health plans. According to the guidance, employers must document
individuals’ eligibility for COBRA premium assistance in order to claim the credit.
The Q&As further clarify that: • The subsidy is available for extended periods of COBRA coverage between
April 1 and September 30, 2021, due to a disability, second qualifying event or extension under state mini-COBRA. • Involuntary termination includes constructive discharge and termination for cause, but not gross misconduct. • Health reimbursement arrangements, dental-only plans and vision-only plans are covered by the subsidy. Employers are encouraged to read through the entire guidance document to better equip themselves in handling the new law.
Rachel Tserkovniak, SPHR,
is an HR consultant and trainer at the Manufacturer & Business Association. Contact her at 814/833-3200, 800/815-2660 or rtserkovniak@mbausa.org.
The Manufacturer & Business Association is proud to recognize our members throughout the region. To learn more about the benefits of MBA membership, as well as upcoming programs and services, visit www.mbausa.org.
Electralloy in Oil City, Pennsylvania is celebrating 30 years in operation in 2021. Electralloy is North America’s exclusive licensed producer of all NITRONIC® bar, billet, coil rod, master alloy pigs and ingot products as well as NITRONIC® weld wire and weld consumables.
CORE Environmental Services, Inc. is marking its 20th anniversary this year. The Allison Park, Pennsylvania company was founded in 2001 to provide environmental consulting services to the industrial and commercial marketplace. Congratulations to Leesl Warren from The Warren Company in Erie, Pennsylvania, who was the lucky winner of The Manufacturer & Business Association’s first virtual HR CoffeeTalk gift box in June 2021.
Butler County Tourism & Convention Bureau is celebrating 20 years in business! The organization is located in Zelienople, Pennsylvania. Union Dale Cemetery is 175 years old this year! The nonprofit and nonsecretarian cemetery was incorporated in 1846 and is located at 2200 Brighton Road in Pittsburgh.
Stick with what works.
96% of businesses that choose UPMC Health Plan stay with UPMC Health Plan.
You’ve given a lot of thought to your employees’ health coverage. And you’ve come to a familiar conclusion — nothing’s better than UPMC Health Plan. Choose us for affordable plan options. Full in-network access to UPMC along with other doctors and hospitals in the community. Access to 24/7 virtual urgent care. Service from a designated Health Care Concierge. And digital health tools that keep up with busy lives and schedules. All this is worth sticking with, don’t you agree? To learn more, visit UPMCHealthPlan.com/employers.
