Public Safety Officer Health Insurance Tax Exemption Change

Public Safety Officer Health Insurance Previous law provided the opportunity for public safety officers to exclude $3,000 from gross income for a direct payment for health insurance premiums from a governmental retirement plan. With SECURE 2.0, insurance premium payments no longer need to be paid directly from the retirement plan to qualify for the tax… Continue reading

Reduction in Excise Tax on RMDs

Reduction in excise tax on RMDs Reduces the penalty for failure to take an RMD from 50% to 25%. Further, if a failure to take an RMD from an IRA is corrected in a timely manner, as defined under SECURE 2.0, the excise tax on the failure is further reduced from 25% to 10%. This… Continue reading

Required Minimum Distribution (RMD) Ages Updated

Required minimum distribution (RMD) age changes Increases the required minimum distribution (RMD) age from 72 to 73 for individuals who attain age 72 after January 1, 2023, and age 73 before January 1, 2033. Further, there is a subsequent increase to age 75 for any individual who did not attain age 74 prior to January… Continue reading

Rehire Retiree Guidelines – Waiver Extended through 2027

To assist employers with filling open positions due to labor shortages or increased needs arising from COVID-19 related factors, there will be a temporary adjustment to MERS rehired retiree requirements. Retirees who return to work due to employer need will not have their pension benefits suspended if they exceed the 1,000 hour limit. This waiver… Continue reading

Expanded Plan Close/Freeze Policies

In an effort to proactively offer employers options to help meet their unique financial needs and manage the affordability of their MERS plans, the MERS Plan Document was revised to allow more options to employers to close or freeze their current MERS retirement plan and choose a different retirement plan style for their current and/or… Continue reading

Enhancements to the Deferred Retirement Option Program (DROP)

To reduce the risk of additional projected liability and/or cost from adding a DROP and balancing it with the increasing need to retain employees of various skillsets and talent, these changes will: Allow employers to select a Credited Interest Rate under the DROP as a whole percentage between 0% and 3%; Allow employers to select… Continue reading

Leave of Absence Provision Administration Clarification

After extensive research of IRS regulations and PERSIA requirements, we’ve made the following determinations regarding the administration of the Leave of Absence provision: When mandatory contributions for 401(a) defined benefit plans are in place, employee contributions are required when granting service credit to an employee on a leave of absence. There is not an option… Continue reading