FOR IMMEDIATE RELEASE
Letter urges clarification on provisions for catch-up contributions; RMDs; plan participation for long-term, part-time workers; and ERISA incorporation
Lexington, KY, March 27, 2023—The National Association of Government Defined Contribution Administrators (NAGDCA) today announced that it has sent a communication requesting clarification of several sections of the recently passed SECURE 2.0 bill. NAGDCA is the premier professional association for plan administrators and services providers of government-sponsored defined contribution retirement plans.
Specifically, the sections for which NAGDCA is seeking clarification are those for catch-up contributions; RMDs; plan participation for long-term, part-time workers; and ERISA incorporation.
In the letter, sent on Friday, March 24, NAGDCA Executive Director Matt Petersen wrote “The need for guidance on these topics is especially urgent for governmental plans because they often face complexities in local law enabling requirements, payroll systems, and administration that most private sector employers do not. Further, although Congress provided for delayed governmental plan amendment deadlines, because Congress did not explicitly provide for delayed effective dates for governmental plans, many of our members now face implementation deadlines that fall far earlier than they are procedurally able to address under local laws.”
“NAGDCA’s mission is to provide the public DC plan sponsors with the information and support they require to best serve their constituents—this nation’s state and local government employees. We’re confident that the IRS and Treasury Department are equally concerned with ensuring that these populations have access to the same options and opportunities as their private-sector counterparts’,” Petersen concluded.
The letter was submitted to Rachel Levy, Associate Chief Counsel, Employee Benefits, Exempt Organizations, and Employment Taxes, Internal Revenue Service; Carol Weiser, Benefits Tax Counsel, Office of Tax Policy, U.S. Department of the Treasury; and Helen Morrison, Deputy Benefits Tax Counsel, Office of Tax Policy, U.S. Department of the Treasury.
The letter may be accessed here.
NAGDCA provides education, information, and training in all aspects of public plan administration to support members in creating plans that enable secure retirement outcomes for their participants. National Retirement Security Week, originally conceived by NAGDCA to encourage retirement saving among government workers, has grown into National Retirement Security Month, a national effort to inspire American employees to save adequately for a secure retirement that is observed throughout the retirement industry during the month of October. It has received bipartisan Senate resolution since its conception in 2006. To learn more about NAGDCA, visit https://www.nagdca.org/.
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Robin Schoen Public Relations