Voya 2013 Annual Report Download - page 68

Environmental Considerations
Our ownership and operation of real property and properties within our commercial mortgage loan portfolio
is subject to federal, state and local environmental laws and regulations. Risks of hidden environmental liabilities
and the costs of any required clean-up are inherent in owning and operating real property. Under the laws of
certain states, contamination of a property may give rise to a lien on the property to secure recovery of the costs
of clean-up, which could adversely affect the valuation of, and increase the liabilities associated with, the
commercial mortgage loans we hold. In several states, this lien has priority over the lien of an existing mortgage
against such property. In addition, we may be liable, in certain circumstances, as an “owner” or “operator,” for
costs of cleaning-up releases or threatened releases of hazardous substances at a property mortgaged to us under
the federal Comprehensive Environmental Response, Compensation and Liability Act of 1980 and the laws of
certain states. Application of various other federal and state environmental laws could also result in the
imposition of liability on us for costs associated with environmental hazards.
We routinely conduct environmental assessments prior to closing any new commercial mortgage loans or to
taking title to real estate. Although unexpected environmental liabilities can always arise, we seek to minimize
this risk by undertaking these environmental assessments and complying with our internal environmental policies
and procedures.
Health Care Reform Legislation
The Patient Protection and Affordable Care Act, signed into law on March 23, 2010, and The Health Care
and Education Reconciliation Act of 2010, signed into law on March 30, 2010 (together, the “Health Care Act”),
may lead to fundamental changes in the way that employers, including us, provide health care benefits, other
benefits and other forms of compensation to their employees and former employees. Among other changes, and
subject to various effective dates, the Health Care Act generally restricts certain limits on benefits, mandates
coverage for certain kinds of care, extends the required coverage of dependent children through age 26,
eliminates pre-existing condition exclusions or limitations, requires cost reporting and, in some cases, requires
premium rebates to participants under certain circumstances, limits coverage waiting periods, establishes
penalties on employers who fail to offer sufficient coverage to their full-time employees and requires employers
under certain circumstances to provide employees with vouchers to purchase their own health care coverage. We
cannot predict the impact of the Health Care Act, and any regulations or guidance related to the Health Care Act,
on us as an employer and on the benefit plans we sponsor for employees or retirees and their dependents, or
whether those benefits will remain competitive or effective in meeting their business objectives. Our costs to
provide such benefits and our tax liabilities in connection with benefits or compensation cannot be predicted.
The Health Care Act also significantly impacts how employers provide health care to employees and how
individuals obtain health care insurance. There is significant uncertainty surrounding the impact of the Health
Care Act on insurers which may create risks to products we offer, including Stop Loss Insurance sold to
employers offering self-insured health plans. In addition, should the Treasury Department issue guidance
concluding that insurers offering Stop Loss Insurance are considered health care providers, we may face adverse
tax or other financial consequences.
U.S. Supreme Court Decision regarding Defense of Marriage Act
Before June 26, 2013, pursuant to Section 3 of the Defense of Marriage Act (“DOMA”), same-sex
marriages were not recognized for purposes of federal law. On that date, the United States Supreme Court held in
United States v. Windsor that Section 3 of DOMA is unconstitutional. The Windsor decision affects over 1,000
federal laws and regulations, many of which touch upon our services and procedures. While the IRS and DOL
have issued guidance indicating that they will regard individuals to be married if they have entered into a
same-sex marriage that is valid under the laws of the state where such marriage is celebrated, the appropriate
legal and regulatory authorities need to provide further guidance regarding the open questions created by the
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