On June 8, 2020, the Internal Revenue Service (IRS) issued Notice 2020-44 announcing the PCORI fee for plan years ending on or after October 1, 2019 and before October 1, 2020 will be $2.54 per covered life and is due July 31, 2020. The Further Consolidated Appropriations Act of 2020 included a 10 year extension of the PCORI fees originally set to expire for plan years ending on or after October 1, 2019. Plan sponsors may continue to use one of the three calculation methods specified in Internal Revenue Code Section 4376 (actual, snapshot, or Form 5500). However, due to the late notice of the extension and fee amount, Notice 2020-44 provides transitional relief which allows plan sponsors to use any reasonable method for calculating the average number of lives for plan years ending on or after October 1, 2019 and before October 1, 2020.
If you have any questions about the PCORI fee calculation or extension, please feel free to contact your F&F consultant for assistance.