SECURE 2.0 Impacts on Governmental Plans

SECURE 2.0 Impacts on Governmental Plans

This post highlights many of the significant law changes affecting governmental retirement plans that are part of the recently adopted Secure 2.0 Act of 2022 (the Act). The table below simply highlights “what” is changed, “when” the change takes effect, and “whether”...

More on the Documentation of Employer “Pick-up” Contributions

More on the Documentation of Employer “Pick-up” Contributions

In an earlier post, we explained what “pick-up” contributions are, and how they are used by many governmental employers to convert mandatory after-tax employee contributions into pre-tax contributions. IRS Revenue Ruling 2006-43 contains specific guidance on what the...

When “Public” Does Not Refer to “Governmental”

When “Public” Does Not Refer to “Governmental”

Recently, a retirement plan advisor asked whether a “public” charity was “governmental” and eligible to maintain a non-ERISA retirement plan. This post explores some of the terminology that is used by the IRS, and in the retirement industry, and how one does not...

Are Your Employer “Pick-Ups” Properly Documented?

Are Your Employer “Pick-Ups” Properly Documented?

Although most public employers are familiar with the concept of a “pick-up” of employee mandatory contributions, many do not appreciate what is required to properly document a “pick-up”. This post reviews the basics of employer pick-ups and the documentation...

Do You Have An Appropriate OPEB Document?

Do You Have An Appropriate OPEB Document?

Due to the rising costs of health care and health insurance, pressure from union bargaining partners, and the application of the “equal contribution rule” for public agencies that provide health coverage through CalPERS, many California cities and special districts...

What Is a Section 415(m) Plan, and When Might You Need One?

What Is a Section 415(m) Plan, and When Might You Need One?

Because both the Internal Revenue Code (Code) and PEPRA sometimes “conspire” to limit the retirement benefits of public agency employees in ways that make it harder for affected agencies to hire and retain certain individuals, it may become necessary for those...

Why a Public Agency Might Want to Add a 401(a) Plan

Why a Public Agency Might Want to Add a 401(a) Plan

The vast majority of public agencies already maintain a 457(b), or eligible deferred compensation plan. A much smaller number also maintains one or more 401(a) plans in addition. This post discusses some of the reasons a public agency might want to add a 401(a) plan...