R.E.S.C.U: Relief Effort and Support for Credit Unions

KEY INFORMATION FROM FEDERAL AGENCIES AND OTHER POLICYMAKERS REGARDING HURRICANE KATRINA ISSUES



National Credit Union Administration - Emergency Call Center Number - 1-800-827-6282

  • Guidance for Examiners Related to Hurricane Katrina [Access NCUA's Letter to CUs here; access Interagency Supervisory Guidance here] 2/3/06

The Federal Financial Institutions Examination Council (FFIEC), along with the state supervisory authorities (SSAs) in Louisiana, Mississippi and Alabama, have issued examiner guidance outlining the supervisory practices to be followed in assessing the financial condition of credit unions and other financial institutions affected by Hurricane Katrina. The guidance, Interagency Supervisory Guidance for Institutions Affected by Hurricane Katrina, also applies to examinations of credit unions that may be located outside the disaster area but have loans or investments to members located in the disaster area. The guidance recognizes that examiners need to retain flexibility in their supervisory response, given the "unique and long-term nature of the problems faced by affected institutions."

NCUA and the other Federal Financial Institutions Examination Council (FFIEC) agencies have asked media outlets with the highest concentration of people affected by the devastating storms to run public service announcements (PSAs) to aid in the financial recovery of victims. Financial regulators have been encouraging the institutions they supervise to continue to work with affected borrowers. Assistance may include waiving fees, lowering interest rates, extending repayment schedules, or deferring principal or interest for an additional period, where appropriate. However, four months after the hurricanes, many members/customers have not been in contact with their institution; many of them may not be aware that their financial institution still has the ability to work with them as they put their lives back together. Consequently, the message of PSAs is that anyone affected by the hurricane with any sort of debt or loan should contact their lender. Failure to contact the lender will reduce that financial institution's ability to provide support and relief for financial obligations, which can result in more debt and adversely affect individuals' credit. Click here to see the print PSAs and to hear the radio PSAs

NCUA, along with the other Federal Financial Institution Examination Council (FFIEC) member agencies, have published an order waiving the agencies' appraisal requirements for three years for regulated financial institutions affected by Hurricanes Katrina and Rita. The order is effective as of October 14, 2005. To qualify for the waiver, a credit union must document the following: (1) the transaction involves real property located in the designated disaster areas; (2) the property involved was directly affected by the major disaster or the transaction would facilitate recovery from the disaster(s); (3) there is a binding commitment to fund the transaction that is made within three years after the date the major disaster was declared; and (4) the value of the real property supports the credit union's involvement in the transaction.

  • Use and Handling of FEMA Disaster Assistance Checks 10/21/05

Although the regulators, including NCUA and the Department of the Treasury, are actively looking into the issue of whether financial institutions are permitted to use the proceeds of FEMA checks to setoff overdrafts or other funds owed to the institution by an individual receiving the check, presently financial institutions are being advised by NCUA generally not to use the proceeds of FEMA checks for setoff purposes unless explicitly directed by the member to do so. CUNA and the Leagues are working with NCUA on this issue and will provide additional information if the regulators determine that financial institutions are permitted to use FEMA checks to cover overdrafts or to repay other funds owed to the credit union by the FEMA check recipient.

  • Temporary Real Estate Appraisal Exceptions in Major Hurricane Disaster Areas [ Access here] (10/6/05)

NCUA and the other federal financial regulators published an order (effective 10/14/05) waiving the agencies' appraisal requirements for three years for regulated financial institutions affected by Hurricanes Katrina and Rita. To qualify for the waiver, a financial institution needs to document that: (1) the transaction involves real property located in the designated disaster areas; (2) the property involved was directly affected by the major disaster or the transaction would facilitate recovery from the disaster(s); (3) there is a binding commitment to fund the transaction that is made within three years after the date the major disaster was declared; and (4) the value of the real property supports the institution’s decision to enter into the transaction.

  • NCUA Encourages CUs to Volunteer With Project Restore HOPE [Access here] 10/4/05

In this NCUA News Release, Chairman JoAnn Johnson states that NCUA has called on its agency-wide staff to encourage them to volunteer in the Project Restore HOPE initiative and encourages credit unions nationwide to volunteer in the project to assist hurricane victims. Specifically, Project Restore HOPE will include components such as call center volunteers, FEMA Disaster Recovery Center/Hope Coalition America field office volunteers, street team volunteers, and virtual help- center volunteers. Credit unions can find more information regarding volunteer opportunities with Project Restore Hope at the Project's website, www.operationhope.org.

This special NCUA page contains the following information: an NCUA hotline to address credit union operations in the affected states; answers to frequently asked questions about credit unions affected by Hurricane Rita; and a report on the operating status and alternate locations for credit unions in the impacted states.

  • Affected CUs Can Request Additional Time to File Call Reports [Access here] 9/30/05

NCUA's press release states that given the problems in the aftermath of the hurricane (including suspension of postal service operations in some areas), NCUA Regions III and IV are working closely with affected credit unions and the state supervisory authorities of Louisiana, Mississippi, and Alabama to address filing Call Reports for the September 30, 2005, 5300 reporting cycle. The September 5300 Call Report filing deadline for FICUs is October 24, 2005. However, NCUA will allow affected credit unions additional time to submit a Call Report if needed. Credit unions affected by Katrina needing additional time to file a Call Report should contact their NCUA regional director or state supervisory authority for an extension.

  • NCUA Reports that All Affected CUs Operational [Access here] 9/16/05

NCUA's press release states that all 139 federally insured credit unions with assets totaling $3.4 billion that were temporarily closed due to Hurricane Katrina are all now reporting operational status in Louisiana, Mississippi and Alabama. Even though some credit unions may be operating from back-up sites, members should have access to their funds.

  • FCU Authority to Make Charitable Contributions and Donations to Storm Victims 9/05

NCUA's letter reminds federal credit unions (FCUs) that their boards can approve donations to nonprofit recipients located or conducting activities in their communities, or they can delegate authority to staff within the parameters of the credit union's policies. This includes in-kind donations (staff time, equipment). FCUs can assist other credit unions with cash contributions or in-kind donations. In addition, FCUs can make no-interest loans to nonprofit community organizations that would qualify for charitable contributions. FCUs may also make contributions to tax-exempt organizations that promote and develop credit unions.

  • Availability of CDRLF Technical Assistance Grants for Low-Income CUs in Disaster Areas 9/15/05

NCUA announces that it has allocated $120,000 for Community Development Revolving Loan Fund (CDRLF) technical assistance grants for disaster relief for low-income credit unions in designated disaster areas in the Gulf states. Using a streamlined application form, eligible credit unions may request up to $2,500 for business resumption and rebuilding. This grant initiative will help those credit unions expedite the process of restoring financial services to their members and communities.

NCUA's Regulatory Alert provides enclosed joint guidance from the agency, federal banking regulators and the Financial Crimes Enforcement Network (FinCEN) regarding complaince with the Bank Secrecy Act when opening new accounts and processing of nonmember transactions for victims of Hurricane Katrina. This guidance is important because the many individuals who have been displaced may no longer be able to access their primary financial instituion.

This report provides the operational status of the 139 affected credit unions in Alabama, Louisiana and Mississippi in the aftermath of Hurricane Katrina, based on NCUA's contacts with the credit unions. In a number of some cases, the credit unions are only partially operational or not yet operational. This list is updated frequently, based on the agency's most recent contacts.

These answers are based on questions NCUA has received from credit unions and their members in the affected areas and provides important responses on issues such as getting cash, contacting credit unions, and getting more information.

  • NCUA, Other Regulators Issue Joint Statement on How Institutions Can Assist Displaced Consumers [Access pdf file here] 9/02/05

This joint statement provides a list of actions any financial institution could take to assist consumers affected by the hurricane. It includes actions such as waiving fees, increasing withdrawal limits, allowing skipped payments, easing credit limits and delaying delinquency notices to credit bureaus, among others, consistent with safety and soundness.

  • NCUA's Public Service Announcement on Savings Accounts in Affected Credit Unions [Access here] 9/2/05

This announcement reassures members of credit unions in the affected areas that funds in credit unions are federally insured up to the $100,000 federal limit.

  • NCUA Reports to Congress on its Efforts Following the Hurricane [Access here] 9/7/05

This information summarizes the report that the agency provided to Congress on the 139 impacted credit unions in the three-state areas.

  • NCUA Accounting Bulletin Concerning CUs Selling Held-to-Maturity Securities (Investments) [Access here] 9/05

Affected credit unions wanting to sell held-to-maturity (HTM) investments in order to meet member share withdrawals, demand for emergency loans, and to cover other immediate cash/liquidity needs to return to operating status may do so without necessarily calling into question the credit union's intent to hold the remaining HTM investments to maturity. However, any sales of HTM investments should be exercised during or immediately following the period associated with Hurricane Katrina's aftermath.

US DEPARTMENT OF THE TREASURY

  • Treasury's Financial Management Service Operational Bulletin on Processing Contaminated Treasury Checks by Depository Institutions Impacted by Hurricane Katrina [Access here] 9/05

This Bulletin provides specific operational guidance regarding the processing of contaminated Treasury checks. This guidance is effective until October 31, 2005, but Treasury reserves the right to extend the effective date.

  • Treasury Department Brochure "Weathering the Storm: Financial Tips and Resources for Hurricane Recovery" [Access here] 9/05

This brochure, developed by the Treasury Department's Office of Financial Education, describes federal, state and local financial information resources for individuals affected by Hurricane Katrina or Hurricane Rita. The information contained in the brochure -- including credit union/bank accounts, financial assistance (cash), insurance, federal and state benefits such as social security and unemployment insurance, creditors, and 10 tips for avoiding scams -- cover the states of Alabama, Louisiana, Mississippi and Texas. The brochure has been distributed at various shelters and resource centers across the country through government agencies and private sector organizations. It is also available on the Financial Literacy and Education Commission's website.

The Treasury is updating its guidance on cashing US Treasury checks for FEMA Disaster Assistance Payments and Federal benefit payments to recipients who resided in the affected areas. Credit unions may not be liable for cashing a check with a forged endorsement under certain circumstances. For instance, if a credit union verifies an individual’s identity by calling a telephone number provided by the issuing agency for the purpose of cashing a Treasury benefit or assistance check, it will not be liable in a reclamation action based on a forged endorsement. Credit unions can use this document for more guidance when cashing these checks.

  • Guidance to financial institutions on benefit checks and 3rd party drafts [Access here]
    9/14/05

This site provides guidance to credit unions that are presented with Treasury checks for Social Security, Office of Personnel Management, and Railroad Retirement benefit payments without customary identification. Credit unions should be aware that the issuing agency will NOT verify identity to a third party but will identify an individual when that individual is on a three way call or speaker phone with the credit union.

  • Employers in Devastated Areas May Postpone Pension Payments Due on September 15
    [Access here] 9/13/05

The Treasury Department Statement says that the agency will permit the delay of pension payments due on September 15 for employers located within the geographical region of the hurricane. After considering requests, the Department decided not to extend this relief to any employers located outside the devastated area.

  • Treasury, IRS Announce Special Relief to Encourage Leave-Donation Programs for Victims of Hurricane Katrina [Access here] 9/8/05

The Department of the Treasury and Internal Revenue Service announced relief to support leave- based donation programs to aid victims who have suffered from the extraordinary destruction caused by Hurricane Katrina.

  • U.S. Treasury Urges Waiver of ATM Surcharges for Katrina Evacuees [Access here] 9/8/05

The Treasury requests depository institutions refrain from imposing ATM surcharges on Hurricane Katrina evacuees who use the FEMA Assistance Card to obtain cash from ATMs. The FEMA Assistance Card is a MasterCard-branded debit card that is being issued by Treasury in order to provide Katrina evacuees with access to FEMA benefits.

  • Treasury and IRS Expand Availability of Housing for Hurricane Victims [Access here] 9/2/05

The Treasury and IRS announced that they will waive low-income housing tax credit rules that prevent owners of low-income housing from providing housing to the hurricane victims who do not qualify as low-income.

Internal Revenue Service (IRS)

  • Relief From Backup Withholding Obligations [Access here] 1/30/06

The IRS has issued a notice (Notice 2006-12) relaxing backup withholding requirements for credit unions and other payors required to impose backup withholding on payees (members) due to incorrect taxpayer identification numbers (TINs). This would apply to any incorrect TIN notices issued by the IRS on or after August 28, 2005 and before February 28, 2006 to credit unions that were affected by the hurricanes or to credit unions with respect to member(s) who the credit union reasonably believes was/were affected by the hurricanes. Those credit unions should treat the TIN notices as if they were dated February 28, 2006. Credit unions that have already mailed "B" notices to members should stop any backup withholding, unless those members have not furnished their TINs in the proper manner by April 11, 2006 . Instead, those credit unions should attempt to update their member information and resend any required notices to members in the affected area after February 28, 2006.

  • New publication Explains Hurricane-Related Changes to Tax Law
    [Access here] 1/24/06

IRS Publication 4492, Information for Taxpayers Affected by Hurricanes Katrina, Rita and Wilma, explains the changes to the tax law and relief provisions available to those affected by the recent hurricanes. The new publication lists the disaster areas for each hurricane and explains which areas are eligible for administrative relief from the IRS and which areas receive special tax breaks under recently enacted provisions of the tax law. The publication not only provides information useful to individuals but also highlights the changes businesses need to know about.

  • Tax Favored Treatment for Early Distributions from IRAs and other Retirement Plans [Access here] 10/17/05

This news release reminds qualified plan participants affected by the Hurricane of recent tax law benefits available to them under the Katrina Emergency Tax Relief Act. (1) If an eligible individual (one whose principal residence was in the Hurricane Katrina disaster area on August 28, 2005, and who sustained an economic loss from Hurricane Katrina) receives a qualified Hurricane distribution in 2005, the amount generally is included ratably in income over the year of the distribution and the following 2 years. It is not subject to the 10% additional tax on early distributions. To qualify, distributions must be made between August 25, 2005 and January 1, 2007. If in 2007 the amount of qualified distribution is recontributed to an eligible retirement plan, amended retruns may be filed to claim refunds of tax atrtributable to distribution amount included in income. These distributions are not subject to the mandatory 20% withholding. (2) Loans from a qualified plan to eligible individuals will not be treated as a taxable distribution if made between the dates mentioned above and do not exceed a certain dollar limitation. (3) A qualified individual who between February 28 and Aug 29, 2005 took a distribution such as a hardship distribution from a 401(k) plan or 403(b) annuity or a qualified first-time homebuyer distribution from an IRA to purchase or construct a home in the Hurricane Katrina disaster area, but it was not purchased or constructed as a result of Hurricane Katrina, could recontribute the funds to the plan without any tax consequence. The individual must recontribute the funds during the period from August 25, 2005 to February 28, 2006. The IRS is drafting Form 8915 (Qualified Hurricane Katrina Retirement Plan Distributions and Repayments) to use for reporting distributions and determining the amount included in income.

  • Further Extension of Deadline on Health Plan Coverage Due to Katrina
    [Access Dept. of Labor news release here; access Notice here] 10/11/05

The IRS and Department of Labor have again extended the time allowed to participants, beneficiaries, and plan sponsors to comply with certain deadlines contained in the Consolidated Omnibus Budget Reconciliation Act (COBRA, which permits qualified beneficiaries who lose coverage under a group health plan to elect continuation health coverage), the Health Insurance Portability and Accountability Act (HIPAA, which provides for portability of group health coverage) and the rules for processing of health claims. The notice extends the time frame from January 3, 2006 to February 28, 2006, to comply with the Katrina Emergency Tax Relief Act.

  • IRS Warns Consumers of Possible Scams Relating to Hurricane Relief Donations [Access here] 10/3/05

In this IRS consumer alert about possible scams taking place in the wake of Hurricane Katrina and other recent natural disasters, the agency provides tips to avoid unscrupulous scam artists. (1) Whenever the fraud involves tax relief or tax refunds, a disaster victim should call the IRS toll-free number for Hurricane victims. (2) Donate to recognized charities. (3) Don't give out personal financial information. (4) Contribute by check or credit card instead of cash. The alert also provides contact information where taxpayers suspecting disaster-related fraud can report the fraud, including: the Treasury Inspector General for Tax Administration; ic3.gov on the Web (fraudulent charity web site reporting); and the Federal Bureau of Investigation (FBI) or the Federal Trade Commission's (FTC) Consumer Response Center.

  • Tax Relief Guidelines for Hurricane Rita [Access here] 9/26/05

These guidelines announce tax relief for Hurricane Rita victims similar to those for victims of Hurricane Katrina. The IRS will give affected taxpayers until Feb. 28, 2006, to file most tax returns (including exempt organization returns, employment tax returns, and certain excise tax returns), or to make tax payments, including estimated tax payments, that have either an original or extended due date falling on or after Sept. 23, 2005 and on or before Feb. 28, 2006. The IRS will abate interest and any late filing or late payment penalties that would apply during this period to returns or payments subject to these extensions. This extension to file and pay does not apply to information returns in the W-2, 1098, 1099 or 5498 series, to Forms 1042-S or 8027, or to employment and excise tax deposits due on or before Feb. 28, 2006. In the hardest-hit areas "those counties designated by the Federal Emergency Management Agency (FEMA) as 'individual assistance areas' " the tax relief will be automatic. In areas where FEMA has determined damage is more isolated "designated as 'public assistance areas' " or for other taxpayers outside the hardest-hit areas whose books, records or tax professionals are located in the affected areas, people will need to identify themselves to the IRS as hurricane victims. Taxpayers who need to alert the IRS or have other Rita-related questions can also call the special IRS disaster hotline at 1-866-562-5227.

  • NEW Extension of Deadlines for Taxpayers Affected by Hurricane Katrina - Until Februay 28, 2006 [Access here] 9/28/05

This IRS announcement, following enactment of the Katrina Emergency Tax Relief Act, states that affected taxpayers have until February 28, 2006 to file tax returns and pay any taxes due. Taxpayers may be eligible for relief no matter where they live. However, the means of obtaining the relief may differ based on location. For taxpayers located in the areas hardest-hit by Katrina (designated by the Federal Emergency Management Agency as “individual assistance areas”), the tax relief will be automatic, and taxpayers won’t need to do anything to get the extensions and other relief available. In areas where damage is more isolated (“public assistance areas”) or for other taxpayers outside the hardest-hit areas whose books, records or tax professionals are located in the affected areas, people should dentify themselves as hurricane victims by writing “Hurricane Katrina” in red ink at the top of their tax forms or any other documents filed with the IRS. The IRS will abate interest and late filing, late payment or failure to deposit penalties that would otherwise apply. This relief includes extension of the Oct. 31 and Jan. 31 deadlines for filing quarterly federal employment and excise tax returns as well as employment and excise deposits due on or before Feb. 28, 2006.

The IRS Notice explains the types of tax assistance availabe to hurricane victims -- including postponement of deadlines, interest suspension and waiver of penalties -- that apply to any tax return, tax payment or tax deposit with an original or extended due date falling on or after Aug. 29, 2005. In Florida, the date is on or after Aug. 24, 2005. Taxpayers affected by the hurricane may be eligible for tax relief, regardless of where they live. This relief includes the Oct. 31 deadline for filing quarterly federal employment and excise tax returns as well as employment and excise deposits due on or before Jan. 3, 2006. Deadlines for affected taxpayers to file any returns, pay any taxes and perform other time-sensitive acts have been postponed to Jan. 3, 2006. In addition, any disaster-area taxpayer who receives a penalty notice from the IRS should call the number on the Notice to receive penalty abatement. The Notice spells out all areas designated by the Federal Emergency Management Agency (FEMA) for both individual (hardest-hit areas) and public assistance (areas where damage is more isolated). Relief will be automatic for taxpayers in the individual assistance areas; taxpayers in public assistance areaswill need to identify themselves as hurricane victims when filing to get the extensions and other relief available. To help identify as many affected taxpayers as possible, the IRS encourages all taxpayers affected by Hurricane Katrina to write 'Hurricane Katrina' in red ink at the top of their forms or any other documents filed with the IRS. Taxpayers who need to alert the IRS or have other Katrina-related questions can also call the special IRS disaster hotline at 1-866-562-5227.

The Department of Labor and Internal Revenue Service (IRS) have extended the time for employers to comply with certain provisions contained in the Health Insurance Portability and Accountability Act (HIPPA) and the Consolidated Omnibus Budget Reconciliation Act (COBRA). HIPPA provides portability of group health coverage by, among other things, giving people credit for prior health coverage. This time period has been extended to allow Katrina victims more time to secure health coverage without losing coverage for preexisting health conditions. HIPAA also requires special enrollment rights upon certain events, such as loss of other coverage; relief has also been provided to allow Katrina victims more time to request enrollment in other group health coverage. COBRA permits qualified beneficiaries who lose coverage under a group health plan to elect continuation health coverage. This time frame has also been extended to give Katrina victims more time to request continuation coverage. The COBRA rules also govern timing of premium payments. A grace period has been added to give victims more time to make their COBRA payments. The agencies are extending the time fame for group health plans, disability or other welfare plans, and pension plans of employers in affected areas to to provide certain notices in connection with the HIPAA portability and COBRA continuation provisions.

  • Withdrawals (Hardship Distributions) and Loans From Retirement Plans [Access here] 9/15/05

This Internal Revenue Service (IRS) announcement states that 401(k) plans and similar retirement plans are permitted to make loans and hardship distributions to hurricane victims. If the plan does not provide for loans or hardship distributions, the plan must be amended to provide for loans or such emergency distributions no later than the first plan year beginning after December 31, 2005. The hardship distribution must be made between August 29, 2005 and March 31, 2006. A retirement plan will not be considered as having failed to follow verification procedures for plan distributions (for all retirement plans including individual retirement accounts (IRAs) or loans (for non-IRA retirement plans) if such requirements are disregarded for that period, provided the plan administrator (or financial institution in the case of distributions from IRAs) makes a good- faith effort under the circumstances to comply with those requirements. As soon as practical, the plan adminstrator (or financial institution in the case of IRAs) must make a reasonable attempt to assemble any foregone documentation.

  • Katrina Victims Have Until January 3, 2006 to File and Pay Taxes [Access here] 9/8/05

Victims of Hurricane Katrina further extends until Jan. 3, 2006 to file any returns, pay any taxes or make any deposits due. It applies to any return, tax payment or tax deposit with an original or extended due date that fell on or after Aug. 29, 2005. For Florida residents, the effective date begins Aug. 24, 2005. The Internal Revenue Service (IRS) will abate interest and any late filing, late payment or failure to deposit penalties that would otherwise apply. This relief includes the Sept. 15 due date for estimated taxes; the Oct. 17 deadline for individuals who received a second extension for filing their individual income tax returns; and the Oct. 31 deadline for filing quarterly federal employment and excise tax returns. To the maximum extent possible, the IRS will automatically grant this relief to any individual or business located in the disaster area.

  • Waiver of Minimum Funding Requirements for Pension and Employee Benefit Plans [Access here] 9/2/05

The IRS, the Department of Labor's Employee Benefits Security Administration and the Pension Benefit Guaranty Corporation announced the waiver of minimum funding requirements for pension and employee benefit plans. Employers must fund their pension and employee benefit plans with a minimum level of funding under the Internal Revenue Code and ERISA. The agencies have temporarily suspended minimum funding requirements for employers in the Presidential Disaster Areas. Employers will have until October 31, 2005, to request waivers or to make minimum funding contributions. The deadline for such waivers was August 29, 2005.

  • IRS Waives Penalties for Federal Tax Deposits for Employment and Excise Taxes [Access here] 8/30/05

Taxpayers in Presidential Disaster Areas struck by Hurricane Katrina generally will have until Oct. 31, 2005, to file tax returns and submit tax payments. The IRS will abate interest and any late filing or late payment penalties that would otherwise apply. The IRS will waive penalties for Federal Tax Deposits for employment and excise taxes. Deposits due between August 29, 2005, and September 23, 2005, will have the late payment penalties waived. Taxpayers filing tax returns, making tax payments, or requesting tax relief should write "Hurricane Katrina" in red ink at the top of their tax forms or payment vouchers.

DHS/ FEMA - Department of Homeland Security/ Federal Emergency Management Agency

  • Use and Handling of FEMA Disaster Assistance Checks (10/21/05)

Although the regulators, including NCUA and the Department of the Treasury, are actively looking into the issue of whether financial institutions are permitted to use the proceeds of FEMA checks to setoff overdrafts or other funds owed to the institution by an individual receiving the check, presently financial institutions are being advised by NCUA generally not to use the proceeds of FEMA checks for setoff purposes unless explicitly directed by the member to do so. CUNA and the Leagues are working with NCUA on this issue and will provide additional information if the regulators determine that financial institutions are permitted to use FEMA checks to cover overdrafts or to repay other funds owed to the credit union by the FEMA check recipient.

  • FEMA List of Federal Disaster Declarations (designated counties/parishes) [Access here]
  • Here are images of the FEMA debit cards for reference. Although FEMA is no longer issuing new debit cards, the cards are in circulation - primarily in Texas. FEMA debit card examples:
    example 1 and example 2.
  • Process for Requesting Assistance for Hurricane Katrina Critical Infrastructure Related Needs [Access here] 9/14/05

In the event credit unions and other private sector entities are unable to get their needs for assistance related to critical infrastructure assets and systems (inlcuding security) met at the local level, there is a process they may follow to request federal assistance. Requests from infrastructure owners and operaters should be submitted to the local Department of Homeland Security (DHS)/Infrastructure Protection (IP) Infrastructure Coordinator located with the Joint Field Offices (JFOs). JFOs are local centers established specifically to coordinate response and recovery activities.

DHS/FEMA is offering individual assistance to individuals evacuated from the areas hit by Hurricane Katrina by way of either electronic transfer directly in people's financial institution accounts, debit cards, or by check that would be mailed. The debit cards, which are stored value cards holding $2,000, will require a PIN and can be used at various merchants as well as at ATMs. They can be accessed at the following ATM networks: MasterCard, NYCE, PULSE, CIRRUS, Maestro, and Allpoint. Most credit unions' ATMs should have the capability of accepting one of these networks. Credit unions that do not, should contact their ATM network to see if a network could be added quickly. Additionally, credit unions with members in the affected areas should be prepared to provide their ABA routing number and other information so that members could receive assistance by electronic transfer.

  • Sites for Distribution of FEMA Debit Cards by September 12, 2005 [Access here]

This announcement indicates the cities in Texas where the FEMA/DHS debit cards will be distributed by September 12, 2005. Currently, FEMA has no plans to distribute the cards on-site in cities outside Texas. FEMA continues to distribute disaster relief funds by check and ACH (Automated Clearing House) deposits to hurricane evacuees in other cities.

  • Questions and Answers on Management and Use of FEMA Assistance Cards [Access here] 09/09/05

Common questions are answered by FEMA on the use and management of the debit cards. Credit unions will be able to find answers to questions about the security features of the cards, a customer service number, and restrictions on use of the cards.

  • FEMA Debit Card FAQs for Recipients [Access here] 9/9/05

FEMA answers commonly asked questions for recipients of the DHS/FEMA Assistance Card. Credit unions can use this information if asked by members about their cards.

NACHA - The Electronic Payments Association

NACHA issued an Operations Bulletin on the enforcement of the NACHA Operating Rules regarding destroyed check entries (XCK)transactions. NACHA will not impose penalties on financial institutions that originate XCK from Sept. 1 to Oct. 31 in the areas impacted by Hurricane Katrina.

NACHA issued an Operations Bulletin that provides guidance to Receiving Depository Financial Institutions (RDFIs) on responding to the needs of their accountholders. Credit unions receiving ACH credits or debits can use this Bulletin when members would like to return or stop ACH transactions.

This document provides a list of financial institutions with outstanding FedACH Files as of September 6, 2005. Credit unions can use this list to be able to know which financial institutions are experiencing FedACH payments connectivity outages and are unable to retrieve ACH payments files. This number of financial institutions is declining and credit unions that have questions or would like additional information should contact their FedACH Central Operations Site.

VISA

Visa is providing guidelines for handling possible disputes that may arise relating to Hurricane Katrina. Visa is advising that normal dispute resolution guidelines are in place for non-affected areas and is asking members, cardholders and merchants to act in good faith and work together to resolve disputed transactions. Credit unions can use this document to reference specific situations that may arise, such as relaxing time limits for processing transactions and credits or initiating exception items.

Visa has issued a memo to members offering assistance to financial institutions and Visa processors to help support Visa cardholders who need emergency services. Credit union members can use Visa's emergency services by contacting specialists at (800) VISA-911. Specialists will help members block lost/stolen cards, facilitate emergency card replacement and cash disbursement with the credit union's approval.

Visa issued a memo to its members outline their efforts to help victims of Hurricane Katrina. Among some of the efforts, Visa is waiving Interchange Reimbursement Fees and Acquirer Service Fees, helping members in affected areas bring their operations back up, and providing emergency cardholder services.

Financial Crimes Enforcement Network (FinCEN)

FinCEN has published an advisory to alert credit unions and other financial institutions about the potential for fraudulent transactions involving hurricane relief funds. The advisory notes the red flags identified by the Department of Justice's Hurricane Katrina Fraud Task Force as possible signs of fraudulent activity. Credit unions that encounter those or similar suspicious situations should immediately file a Suspicious Activity Report (SAR). FinCEN requests that credit unions use certain key terms (listed in the advisory) in the narrative portion of the SAR to assist law enforcement in identifying hurricane-related fraud as soon as possible. Credit unions should also contact their local office of the Federal Bureau of Investigation (FBI) or the United States Secret Service.

  • Frequently Asked Questions Regarding the Bank Secrecy Act and Hurricane Katrina Victims
    [Access here] 9/9/05

FinCEN responds to questions asked by financial institutions concerning BSA issues related to hurricane vitcims, including: account opening verification/ID, the appropriate address when the indivdual only has a temporary address, and release of proceeeds of wire tranfer(s) to a non-member/customer beneficiary.

Social Security Administration

The SSA is also issuing an accompanying letter with its benefits checks. The letter would have text similar to that contained in attachment. Credit unions can see a sample of the check and letter and should be aware that most checks are computer generated, but some may be hand written.

  • UPDATED GUIDANCE for Depository Institutions on Cashing FEMA Disaster Assistance Checks and Government Benefit Checks Issued by the US Treasury. [Open/download Word Doc here] 9/14/05
The Treasury is updating its guidance on cashing US Treasury checks for FEMA Disaster Assistance Payments and Federal benefit payments to recipients who resided in the affected areas. Credit unions may not be liable for cashing a check with a forged endorsement under certain circumstances. For instance, if a credit union verifies an individual’s identity by calling a telephone number provided by the issuing agency for the purpose of cashing a Treasury benefit or assistance check, it will not be liable in a reclamation action based on a forged endorsement. Credit unions can use this document for more guidance when cashing these checks.

Veteran's Administration

The Veteran’s Administration is issuing third party drafts with an accompanying letter signed by the Director of the regional office that is issuing the draft. Credit unions should be aware that this letter should be on VA letterhead but its appearance may vary between regional offices.

  • UPDATED GUIDANCE for Depository Institutions on Cashing FEMA Disaster Assistance Checks and Government Benefit Checks Issued by the US Treasury. [Open/download Word Doc here] 9/14/05
The Treasury is updating its guidance on cashing US Treasury checks for FEMA Disaster Assistance Payments and Federal benefit payments to recipients who resided in the affected areas. Credit unions may not be liable for cashing a check with a forged endorsement under certain circumstances. For instance, if a credit union verifies an individual’s identity by calling a telephone number provided by the issuing agency for the purpose of cashing a Treasury benefit or assistance check, it will not be liable in a reclamation action based on a forged endorsement. Credit unions can use this document for more guidance when cashing these checks.

Federal Reserve

The American Red Cross (ARC) is distributing a Disbursing Order document to purchase goods and services from authorized vendors. The Federal Reserve system is currently working with the ARC to make these forms available for cash at financial institutions. Financial institutions do not have to convert these to cash.

Federal National Mortgage Association (Fannie Mae)

  • Fannie Mae Has Procedures to Provide Lenders With Flexibility to Assist Homeowners in Areas Hit by Hurricane Katrina [Access here] 8/29/05

Fannie Mae's business guidelines advise lenders to counsel borrowers in the affected states on all possible mortgage payment work-out options and to inform homeowners of disaster relief available from federal agencies. Mortgage lenders doing business with Fannie Mae are to determine appropriate relief steps by considering: any uninsured losses; extended unemployment; and extraordinary expenses related to the Hurricane that affect a homeowner's ability to make their mortgage payments. Lenders are now required to temporarily discontinue reporting delinquencies to credit bureaus if they are aware that the borrower's delinquency is attributed to hardships as a result of a natural disaster. In addition, Fannie Mae recently streamlined its procedures for handling insurance proceeds to provide lenders with more discretion in disbursing insurance proceeds with respect to any federally or state-declared natural disaster.

Federal Home Loan Mortgage Corporation (Freddie Mac)

  • Freddie Mac Grants 3-Month Suspension of Mortgage Payments for Borrowers Affected By Hurricane Katrina [Access here] 9/8/05

In this press release, Freddie Mac reports it has instructed its servicers to suspend mortgage collections for September, October and November in key Hurricane Katrina disaster areas designated by the Federal Emergency Management Agency (FEMA). This suspension applies to every borrower with a Freddie Mac-owned single-family mortgage in affected areas. Servicers will have the discretion to continue suspending or reducing payments for another nine months on a case-by-case basis; those determinations must be made before December’s mortgage payment due dates. Servicers can also return to cash-strapped homeowners any September mortgage payments already made but not reported to Freddie; alternatively, borrowers can also contact their servicers to request the return of their September payments. All payments have to be made once the suspension periods end. Borrowers will still be required to make all mortgage payments once the temporary suspension period ends. If a servicer believes forbearance is needed beyond August 2006, the servicer can make that recommendation to Freddie Mac.

  • Freddie Mac Extends Mortgage Relief to Borrowers Affected By Hurricane Katrina [Access here] 8/30/05

Freddie Mac has extended its mortgage relief policies for borrowers affected by Hurricane Katrina in locations declared major disaster areas. Freddie Mac’s disaster relief policies also strongly encourage servicers to extend several other measures to help affected borrowers with Freddie Mac-owned loans, including: expediting the release of insurance proceeds to help borrowers secure materials, labor and other resources to repair their homes; waiving assessments of penalties or late fees against borrowers with disaster-damaged homes; and not reporting forbearance or delinquencies caused by the disaster to the nation's credit bureaus. Freddie Mac allows servicers additional discretion to reduce or suspend mortgage payments for up to 12 months for borrowers with Freddie Mac-owned mortgages in the declared major disaster areas.

Department of Housing and Urban Development (HUD)

  • HUD Announces $200 Million Mortgage Aid Initiative for Hurricane Disaster Victims [Access here] 12/5/05

HUD announces a $200 million program to help families displaced by Hurricane Katrina and other recent disasters. Under the Mortgage Assistance Initiative, HUD will make mortgage payments for up to one year for disaster victims with FHA-insured mortgages who want to move back into their homes. To be eligible for this mortgage assistance, families must have homes that are repairable and located in a presidentially declared disaster area that is designated for individual assistance. HUD will not only make mortgage payments for qualifying homeowners who are in default, its current practice, but will make advance mortgage payments on behalf of borrowers for up to 12 months. The mortgage relief will assist FHA lenders and protect communities by encouraging homeowners not to abandon damaged properties. After the mortgage assistance period, the borrower will resume making normal mortgage payments. The payment on the borrower's behalf will be secured by a second mortgage that carries no interest rate and is repaid to HUD upon payment-in-full of the first mortgage. FHA-insured families in disaster areas whose houses are not damaged, but have lost their source of income as a result of the hurricanes, will also be eligible for this mortgage relief. These borrowers must be able to demonstrate that: their primary source of employment was located in an area designated for individual assistance; they suffered a reduction in income that makes them unable to pay their mortgage; and they are likely to find jobs within a reasonable period of time. These requirements will remain in effect for an eighteen-month period unless extended or rescinded by HUD.

  • HUD Extends Foreclosure Moratorium for FHA-Insured Homeowners in Affected Areas [Access here] 11/23/05

HUD instructs all FHA-approved lenders to provide additional foreclosure relief for FHA-insured families who live or work in those areas hardest hit by Hurricane Katrina and Rita. The relief affects all pending foreclosures of FHA-insured properties in the Presidentially declared disaster areas designated by the Federal Emergency Management Agency (FEMA) as eligible for individual assistance. Additionally, it prohibits lenders from initiating new foreclosures. The Secretary of HUD again encourages lenders to undertake actions such as assisting borrowers with hazard and flood insurance filings, waiver of late charges, and mortgage modification. The extended moratorium will be in effect until February 28, 2006. A current foreclosure moratorium impacting FHA mortgages in Presidentially declared disaster areas hit by Hurricane Wilma will remain effective until January 22, 2006 unless otherwise extended by the Secretary.

  • Information on HUD's Response to Hurricane Katrina [Access here]

This resource page provides information on the relocation of HUD's office in New Orleans, HUD's toll-free number (866-641-8102) for the public to use to obtain information on housing needs, and a link to HUD's mortgagee letter regarding HUD's disaster program designed to provide loans to rebuild or rehabilitate affected homes, along with a request for servicers to delay foreclosures in the affected areas.

This information provides an overview of housing and community development assistance that is available under various HUD programs.

This is a link to the firstgov.gov website that provides more information about locating family and friends and information about providing shelter and housing for victims.

Federal Financial Institutions Examination Council (FFIEC)

  • Guidance for Examiners Related to Hurricane Katrina [Access NCUA's Letter to CUs here; access Interagency Supervisory Guidance here] 2/3/06

The Federal Financial Institutions Examination Council (FFIEC), along with the state supervisory authorities (SSAs) in Louisiana, Mississippi and Alabama, have issued examiner guidance outlining the supervisory practices to be followed in assessing the financial condition of credit unions and other financial institutions affected by Hurricane Katrina. The guidance, Interagency Supervisory Guidance for Institutions Affected by Hurricane Katrina, also applies to examinations of credit unions that may be located outside the disaster area but have loans or investments to members located in the disaster area. The guidance recognizes that examiners need to retain flexibility in their supervisory response, given the "unique and long-term nature of the problems faced by affected institutions."

NCUA and the other Federal Financial Institutions Examination Council (FFIEC) agencies have asked media outlets with the highest concentration of people affected by the devastating storms to run public service announcements (PSAs) to aid in the financial recovery of victims. Financial regulators have been encouraging the institutions they supervise to continue to work with affected borrowers. Assistance may include waiving fees, lowering interest rates, extending repayment schedules, or deferring principal or interest for an additional period, where appropriate. However, four months after the hurricanes, many members/customers have not been in contact with their institution; many of them may not be aware that their financial institution still has the ability to work with them as they put their lives back together. Consequently, the message of PSAs is that anyone affected by the hurricane with any sort of debt or loan should contact their lender. Failure to contact the lender will reduce that financial institution's ability to provide support and relief for financial obligations, which can result in more debt and adversely affect individuals' credit. Click here to see the print PSAs and to hear the radio PSAs.

  • Depository Institutions Encouraged to Continue Efforts to Meet Needs of Victims Recovering From Hurricane Aftermath [Access here] 11/30/05

Following Katrina, the agencies encouraged lenders to work with borrowers affected by the devastating storm. Many lenders responded by deferring loan payments from 60 to 120 days, with 90 days being the most common period. As the end of many initial deferral periods approaches, many insured depository institutions and customers have inquired about the agencies’ views on additional deferral periods, as well as what happens to the amount due when the deferral period ends. In this press release, the agencies respond that "[g]ranting additional deferral periods for some borrowers in accordance with sound risk management practices may be appropriate given that the timing and amount of insurance payments, disaster payments, and other assistance may still be unknown." According to the regulators, lenders can offer flexible repayment terms, so that lum sum payments of deferred interest and principal do not come due immediately. Further, accounts should be giventhe same payment status as before the deferral. If lenders cannot contact borrowers at the end of the deferral period, the institution should view the loan as being of a higher level of risk that should be addressed.

NCUA, along with the other Federal Financial Institution Examination Council (FFIEC) member agencies, have published an order waiving the agencies' appraisal requirements for three years for regulated financial institutions affected by Hurricanes Katrina and Rita. The order is effective as of October 14, 2005. To qualify for the waiver, a credit union must document the following: (1) the transaction involves real property located in the designated disaster areas; (2) the property involved was directly affected by the major disaster or the transaction would facilitate recovery from the disaster(s); (3) there is a binding commitment to fund the transaction that is made within three years after the date the major disaster was declared; and (4) the value of the real property supports the credit union's involvement in the transaction.

  • Additional Supervisory Guidance for FIs Pertaining to Regulatory Reports, ALLL, Sales of Held-To-Maturity Securities and Temporary Hardship Programs for Members/Customers [Access here] 10/6/05

The agencies provide information, in the form of questions and answers, on several issues: third quarter 2005 regulatory report filings; third quarter 2005 allowance for loan and lease losses (ALLL); sales of held-to-maturity securities; past due reporting as well as nonaccrual status, ALLL and charge-offs; credit card temporary hardship and workout programs for members/customers; and related delinquency and credit bureau reporting.

  • FFIEC Release Suggesting Actions FIs Could Take to Assist Hurricane Victims [Access pdf file here] 9/2/05

The FFIEC agencies encourage institutions to assist Hurricane victims to the extent consistent with safe and sound banking practices. Suggested activities include: being flexible in their Customer Identification Program (CIP) to allow non-documentary methods for verifying the ID of Hurricane victims unable to provide standard ID documents; waiving ATM fees for members/customers and non-members/customers; easing restrictions on cashing out-of-state non-member/customer checks; waiving availability restrictions on insurance checks; allowing loan members/customers to defer or skip some payments; and waiving late fees for credit card and other loan balances.

Federal Trade Commission (FTC)

  • FTC Web Page With Tips for Hurricane Victims on Protecting Their Identity [Access here]

This Web page provides tips for Hurricane victims to ensure they do not become a victim of ID theft. The page advises consumers to: call their creditors; obtain a free copy of their credit report from AnnualCreditReport.com; to give out personal information only when absolutely necessary and only after asking for identification; get more than one estimate for repairs or service; and being alert to scams.

  • FTC's Web Page With Information On Managing Money and Credit [Access here]

This web page advises consumers to: ask their financial institution to waive ATM fees, overdraft fees, and their reporting on overdrafts to the credit reporting companies; report lost credit cards to the card issuer and ask what relief measures the issuer can provide; and contact lenders about payment deferral and waiver of late fees/delinquencies.

Small Business Administration (SBA)

  • SBA Launches "Give a Lending Hand" Initiative [Access here] 11/1/05

To help SBA officials approve or deny loans for victims of Hurricanes Katrina, Rita, and Wilma, the NCUA said it is joining that agency in encouraging credit union staff -- active and retired, and especially those with specialized business lending experience -- to participate in the SBA's newly launched "Give a Lending Hand" program. Individuals interested in participating in the initiative will be temporarily located at the SBA's Fort Worth, Texas office for a minimum of 60 days. The SBA will cover all expenses including salary at government rates, travel to Fort Worth, lodging, a per diem for meals, and local transportation. Qualified individuals would take a leave of absence from their current jobs, and employers are not prohibited from supplementing the program participant's salary. Click here to see the full News Now story.

  • Gulf Opportunity Pilot Loan (GO Loan) Program Initiative [Access here] 11/8/05

The SBA has initiated a one year Gulf Opportunity Pilot Loan (GO Loan) Program to expedite financing to small businesses in areas affected by Hurricanes Katrina and Rita. To help speed financing for recovery and rebuilding, the SBA will provide its full guaranty and streamlined centralized loan processing to qualified lending partners that agree to make expedited SBA 7(a) loans available to small businesses located in those disaster areas. The maximum loan amount is $150,000. GO Loans will be available through Sept. 30, 2006, to small businesses in the counties and parishes of Texas, Louisiana, Mississippi, Alabama and western Florida that are included in the Presidential disaster declarations for Hurricanes Katrina and Rita, and the contiguous counties and parishes. The loans will be modeled on SBAExpress loans, which carry an SBA guarantee. For the GO Loan program, the SBA guaranty percentage will be 85 percent. Under the program, lenders will generally use their own paperwork and be responsible for evaluating the creditworthiness of applicants. The decision on whether to apply an SBA guaranty to the loans will be made on an expedited basis, with an anticipated turnaround by the SBA of 24 hours or less. All lenders that are authorized to make SBA-backed loans under the SBAExpress program will be eligible to make GO Loans. About 40 percent of SBA lenders are currently eligible.

  • SBA Strongly Urges Lenders to Provide Deferment Relief to Borrowers in Disaster-Stricken Areas [Access here] 10/11/05

The SBA urges 7(a) participating lenders, 504 program Certified Development Companies and microlenders to provide deferment relief for borrowers with SBA-backed business loans in the primary disaster areas affected by Hurricane Katrina and contiguous parishes/counties. SBA is providing an automatic 12-month deferment of principal and interest payments for SBA-serviced business and disaster loans that were in regular servicing status on August 29, 2005, in those primary counties/parishes designated as federal disaster areas. Interest will continue to accrue on the loans involved.

  • Fact Sheet Summarizing SBA Disaster Loan Program [Access here]

This FACT Sheet covers the following topics regarding SBA disaster (home disaster, business physical disaster, and economic injury disaster) loans: credit requirements; interest rates; loan terms; loan amount limits; loan eligiblity restrictions; refinancing; relocation; and insurance requirements. The filing deadline for applications for physical damage to homes, personal property, and businesses due to Hurricane Katrina is October 28, 2005; the deadline for applications due to economic injury is May 29, 2006. SBA supplies the lending institution business disaster loan packages for distribution in their locations. In addition, SBA provides a special 1-day "training"/outreach to the institution's personnel on how to complete disaster business applications, how SBA processes disaster applications, and the overall Federal disaster assistance process.

  • Notice to Lenders With SBA Loans Normally Handled by SBA's Louisiana Office [Access here]

This notice informs credit unions and other lenders involved in the SBA 7(a) guaranteed loan program that normally send applications to or receive disbursements from the SBA Louisiana office to instead work through the SBA's Arkansas District Office. In addition, closings on 504 loans (SBA's Certified Development Company program) in Louisiana will be handled by the SBA Houston District Office.

  • Types of Loan Assistance Offered by SBA [Access here] 8/30/05

SBA is offering low-interest, long-term disaster loans to homeowners, renters, non-farm businesses of all sizes, and non-profit organizations to help fund the rebuilding from Katrina. Under certain circumstances, relocation may be an eligible use of proceeds for SBA disaster loans and this is done on a case by case basis.

Department of Labor

  • UPDATED GUIDANCE on Extension of Deadline for Filing IRS Form 5500 (Annual Return/Report of Employee Benefit Plan) [Access here] 2/27/06

The Labor Dept. has further extended the deadline for filing Form 5500 series annual returns/reports to August 28, 2006 by plan administrators, employers and other entities which were affected by Hurricane Katrina and located in one or more parishes or counties listed in the IRS’s notice IR-2006-30 http://www.irs.gov/newsroom/article/0,,id=154615,00.html. The extension also applies to entities located outside the affected areas that are unable to obtain the necessary information from service providers/insurance companies whose operations were located in the areas listed in the IRS notice and affected by Hurricane Katrina.

  • Extension of Deadline for Filing IRS Form 5500 (Annual Return/Report of Employee Benefit Plan) [Access here] 10/31/05

The Labor Dept. announced the extension of the deadline for filing IRS Forms 5500 and 5500-EZ until February 28, 2006 in 20 counties in Florida due to Hurricane Wilma. This applies to Form 5500 series filings required to be submitted between October 23, 2005 and February 28, 2006. Plan filers entitled to an extension of relief should check Part I, Box D, on the Form 5500 or Part 1 on Form 5500-EZ and attach a statement to the form in accordance with the instructions.

  • Minimum Funding Relief for Employee Benefit Plans Extended Again - Until 2/28/05 [Access here]10/28/05

In IRS Notice 2005-60 (9/2/05), the IRS, the Department of Labor's Employee Benefits Security Administration and the Pension Benefit Guaranty Corporation extended to 10/31/05 the deadline for making minimum funding contributions to employee benefit plans for those organizations impacted by Hurricane Katrina. Based on provisions enacted in the Katrina Emergency Tax Relief Act, the new IRS Notice 2005-84 extends the deadline until February 28, 2006. Further, the new Notice clarifies that the timing of minimum funding relief for employee plans affected by recent hurricanes applies to both the Internal Revenue Code and corresponding Employee Retirement Income Security Act (ERISA) sections.

  • Further Extension of Deadline on Health Plan Coverage Due to Katrina (10/11/05)
    [Access Dept. of Labor news release here; access Notice here ]

The IRS and Department of Labor have again extended the time allowed to participants, beneficiaries, and plan sponsors to comply with certain deadlines contained in the Consolidated Omnibus Budget Reconciliation Act (COBRA, which permits qualified beneficiaries who lose coverage under a group health plan to elect continuation health coverage), the Health Insurance Portability and Accountability Act (HIPAA, which provides for portability of group health coverage) and the rules for processing of health claims. The notice extends the time frame from January 3, 2006 to February 28, 2006, to comply with the Katrina Emergency Tax Relief Act.

  • UPDATED GUIDANCE on Extension of Deadline for Filing IRS Form 5500 (Annual Return/Report of Employee Benefit Plan) After Hurricane Rita Hits Louisiana and Texas [Access here] 9/28/05

In a News Release, the Department of Labor announced an extension of the deadline for filing Form 5500 and Form 5500-EZ annual report/returns for employee benefit plans due to property damage and destruction from Hurricane Rita in Louisiana and Texas. The extension applies to plan administrators, employers and other entities located in the areas directly affected, as identified by the Federal Emergency Management Agency (FEMA). The extension also applies to organizations located outside the affected areas who are unable to obtain the necessary information from service providers or insurance companies whose operations were directly affected by the hurricane. Under this relief, Form 5500 series filings required to be filed between Sept. 23, 2005, and Feb. 28, 2006, are granted an extension until Feb. 28, 2006. The filing deadline for the areas affected by Hurricane Katrina also has been extended to Feb. 28, 2006.

  • Health Plan Coverage Deadlines Extended for HIPPA and COBRA [Access here] 9/19/05

The Department of Labor and Internal Revenue Service (IRS) have extended the time for employers to comply with certain provisions contained in the Health Insurance Portability and Accountability Act (HIPPA) and the Consolidated Omnibus Budget Reconciliation Act (COBRA). HIPPA provides portability of group health coverage by, among other things, giving people credit for prior health coverage. This time period has been extended to allow Katrina victims more time to secure health coverage without losing coverage for preexisting health conditions. HIPAA also requires special enrollment rights upon certain events, such as loss of other coverage; relief has also been provided to allow Katrina victims more time to request enrollment in other group health coverage. COBRA permits qualified beneficiaries who lose coverage under a group health plan to elect continuation health coverage. This time frame has also been extended to give Katrina victims more time to request continuation coverage. The COBRA rules also govern timing of premium payments. A grace period has been added to give victims more time to make their COBRA payments. The agencies are extending the time fame for group health plans, disability or other welfare plans, and pension plans of employers in affected areas to to provide certain notices in connection with the HIPAA portability and COBRA continuation provisions.

  • Labor Department Extends Deadline for Filing IRS Form 5500 (Annual Return/Report of Employee Benefit Plan) [Access here]
    9/1/05

The U. S. Department of Labor's Employee Benefits Security Administration announces an extension of the deadline for filing Internal Revenue Service (IRS) Form 5500 and Form 5500 EZ annual report/returns (Annual Return/Report of Employee Benefit Plan) due to property damage and destruction from Hurricane Katrina in Louisiana. (The IRS has released similar announcements for Alabama and Missisippi). The extension applies to plan administrators, employers and other entities located in the areas directly affected, as identified by the Federal Emergency Management Agency (FEMA). Form 5500 series filings required to be filed between Aug. 29, 2005, and Oct. 31, 2005, are granted an extension until Oct. 31, 2005.

Financial Services Sector Coordinating Council for Critical Infrastructure Protection and Homeland Security (FSSCC)

  • FSSCC Highlights Financial Services Sector Progress in Responding to Hurricane Victims [Access here] 9/6/05

The FSSCC press release discusses the progress the financial services sector is making is working with the federal government to assist members/customers, particularly with regard to the following: institution business continuity plans, the expeditious opening and handling of accounts for hurricane victims, the Federal Reserve's backup procedures to distribute cash to affected areas, receipt of checks mail to affected areas, and ACH credits for Social Security payments.

Key State Government Agencies in the Gulf States Region

Federal Government's Web Portal - Hurricane Katrina Recovery Page (FIRSTGOV.gov)

This web page contains various federal government resources pertaining to recovery efforts, including: how to find family and friends, shelter/housing for survivors, replacing vital documents, programs for donations and volunteers, health and safety issues, the government's activities to respond in the Hurricane's aftermath, and answers to frequently asked questions.

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