Lexington, KY—The National Association of Government Defined Contribution Administrators (NAGDCA) today called upon Congress to provide relief to retirement plan participants, retirees, and plan sponsors in response to the COVID-19 pandemic-fueled economic emergency. NAGDCA is the premier professional association for plan administrators and services providers of government-sponsored defined contribution retirement plans.

NAGDCA, along with 24 organizations representing plan sponsors and service providers to retirement plans covering millions of public and private employees and retirees, sent a letter to the members of Congress urging them to provide much needed tax relief to workers who may be unable to work.

“The National Association of Government Defined Contribution Administrators is committed to supporting the efforts of state and local government employers to enable the financial wellbeing of their employees. The economic crisis resulting from the COVID-19 pandemic requires Congress to take action to provide plan participants and retirees the flexibility they need to weather this unprecedented public health and financial crisis,” stated NAGDCA Executive Director Matt Petersen.

The letter to Congress includes the following recommendations helpful to government plan sponsors, participants, and retirees:

Streamline loan procedures and liberalize hardship distribution rules.
Allow penalty-free qualified distributions and loan modifications for individuals impacted by COVID-19 similar to the relief provided in previous emergencies:

    • Waive the Section 72(t) additional 10% tax on early withdrawals from retirement plans for individuals who have been impacted by the COVID-19 pandemic. Permit individuals three years to repay the distribution. Permit individuals to include the distribution in income ratably for more than three years.
    • Double the current plan loan limits to the lesser of $100,000 or 100% of the participant’s vested account balance.
    • Allow three years to repay income tax associated with a loan default.
    • Allow individuals who borrow from their plan and have a repayment due during the months following the COVID-19 pandemic to delay loan repayment for up to one year.

Waive required minimum distribution rules.
Provide a temporary waiver of the rules for required minimum distribution from defined contribution plans and IRAs for calendar year 2020; similar to the waiver included in the Worker, Retiree, and Employer Recovery Act of 2008.

“We are encouraged to see that the Senate Finance Republican’s proposal included these provisions and urge Congress to retain them as they negotiate a final package of legislation,” Matt concluded.

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. To encourage a grassroots movement for societal change around retirement, NAGDCA conceived and introduced National Retirement Security Week to Congress. Resolution for the creation of National Retirement Security Week was passed by the Senate in 2006 and continues with bipartisan support annually. To learn more about NAGDCA, visit


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