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- 457 Program
- Defined Benefit Plan
- Defined Contribution Plan
- Hybrid Plan
- IRA
What: Effective January 1, 2025, MERS is no longer requesting an annual income verification for Defined Benefit Plan participants receiving a disability pension benefit.
Action Required: None
Key Dates: This change is effective January 1, 2025.
Impacted Audiences: Participants with a MERS Defined Benefit Plan who collect a disability pension benefit from MERS.
For More Information: See below.
What: Effective August 1, 2024, employers will no longer be required to sign a Certification of Termination Form when an active employee with a MERS Defined Benefit Plan applies for retirement.
Action Required: None
Key Dates: This change is effective August 1, 2024.
Impacted Audiences: Employers who have active employees with a MERS Defined Benefit Plan.
For More Information: See below.
What: The MERS Retirement Board recently approved adding a default provision to the DC forfeiture rules.
Action Required: None
Key Dates:
Impacted Audiences: Employers with a defined contribution plan (including the DC portion of Hybrid)
For More Information: See Below
What: Timeframe in which forfeiture funds from DC plans must be used has been extended
Action Required: If DC forfeiture funds exist, utilize them by 12/31 of following year in which they occur
Key Dates:
Impacted Audiences: Employers with a defined contribution plan (including the DC portion of Hybrid)
For More Information: See Below
What: SECURE 2.0 created a new 10% early distribution penalty exception for individuals who are terminally ill
Action Required:
Key Dates: Effective for distributions made after 12/29/2022
Impacted Audiences: Individuals with a 401(a) defined contribution plan, 457(b) plan or IRA who have been deemed terminally ill (may also impact other plan types not offered by MERS)
For More Information: Click "Read More" below
What: SECURE 2.0 provides that participants are allowed to use up to $22,000 of funds from employer retirement plans or IRAs for qualified disaster-related expenses with no early distribution penalty
Action Required:
Key Dates: Effective for disasters occurring on or after 1/26/2021
Impacted Audiences: Participants with a 401(a) defined contribution plan, 457(b) plan or IRA who have their principal place of abode within a federally declared disaster area (may impact other plan types not offered by MERS)
For More Information: Click "Read More" below
What: SECURE 2.0 includes a provision that allows participants in account-based plans, including governmental 457(b) plans, to designate employer-matching contributions as Roth contributions, and plans to deposit matching and/or non-elective contributions to employees’ designated Roth accounts as Roth contributions
Action Required:
Key Dates: Effective for contributions made after 12/29/2022
Impacted Audiences: Participants with a 457(b) plan
For More Information: Click "Read More" below
What: SECURE 2.0 provisions include changes for special needs trusts established for a beneficiary with a disability
Action Required:
Key Dates: Effective for calendar years beginning after 12/29/2022
Impacted Audiences: Participants with a 401(a) defined contribution plan, 457(b) plan or IRA with a beneficiary that has an established special needs trust (other plan types not offered by MERS may be impacted)
For More Information: Click "Read More" below
What: Through SECURE 2.0 changes, under certain circumstances, participants are now permitted to self-certify that they had an event that constitutes an unforeseeable emergency for purposes of an unforeseeable emergency distribution from the 457(b) plan
Action Required:
Key Dates: Effective for plan years beginning after 12/29/2022
Impacted Audiences: Participants utilizing funds from their 457(b) plan for deemed hardship/unforeseeable emergency distributions (this change may affect other plan types not offered by MERS)
For More Information: Click "Read More" below
What: SECURE 2.0 changes applicable laws to allow individuals to receive distributions from their retirement plan in the case of birth or adoption without paying the 10% additional tax
Action Required:
Key Dates: Effective to distributions made after 12/29/2022 and retroactively to the three-year period beginning on the day after the date on which such distribution was received
Impacted Audiences: Participants utlizing funds from their 401(a) defined contribution plan, 457(b) plan or IRA to pay for qualified birth or adoption-related costs (this change may affect other plan types not offered by MERS)
For More Information: Click "Read More" below
What: Insurance premium payments made by qualified public safety officers no longer need to be paid directly from the retirement plan to qualify for the tax exemption.
Action Required:
Key Dates: Effective for distributions after 12/29/2022
Impacted Audiences: Qualified public safety officers with a 401(a) defined contribution plan, 401(a) defined benefit plan and/or 457(b) plan (other plan types outside those offered by MERS may be affected by this change)
For More Information: Click "Read More" below
What: SECURE 2.0 includes a provision that reduces the penalty for failure to take an RMD from 50% to 25%.
Action Required:
Key Dates: Effective for taxable years beginning after 12/29/2022
Impacted Audiences: Participants with a 401(a) defined contributon plan, 401(a) defined benefit plan, 457(b) plan, or IRA (please note, other plan types not offered by MERS may be affected by this change)
For More Information: Click "Read More" below
What: SECURE 2.0 changed existing laws to allow 457(b) elections to be made at any time prior to the date that the compensation being deferred is available
Action Required:
Key Dates: This change is effective for taxable years beginning after 12/29/2022
Impacted Audiences: Employers who offer a 457(b) plan particiapnts who are enrolled in a 457(b) plan
For More Information: Click "Read More" below
What: SECURE 2.0 includes a provision that changes the age at which a person must take a RMD from their applicable account(s).
Action Required: Ensure RMDs are taken when required based on age.
Key Dates: This change is effective for RMDs made after 2022 for participants who turn age 72 after 2022.
Impacted Audiences: Participants with a 401(a) defined contribution plan (including the DC portion of a hybrid plan), 401(a) defined benefit plan, 457(b) plan and/or IRA. Please note that the plans listed here are specific to those MERS offers. Other account types are impacted by this RMD change and you should check with your provider to ensure compliance.
For More Information: Click "Read More" below
What: The MERS Retirement Board approved plan amendments
Action Required: None
Key Dates: Effective January 1, 2023
Impacted Audiences: Employers offering Defined Benefit, Defined Contribution and/or Hybrid Plans, with immediate impacts to those employers who have adopted alternative transfer rules.
For More Information: Contact your Benefit Plan Coordinator
What: See below
Action Required: None
Key Dates:
Impacted Audiences: Former public safety officers (as defined by the IRS) requesting direct payments to their health insurance provider from their MERS Defined Contribution Plan (this includes the DC portion of Hybrid) or 457 account
For More Information:
What: See below
Action Required: None, unless you rehire a retired employee collecting a MERS DB pension
Key Dates: Waiver is extended through 12/31/2027
Impacted Audiences: Retired defined benefit participants returning to work at the same employer they retired from
For More Information: Contact the MERS Service Center at 800.767.6377
What: See below
Action Required: None
Key Dates: Enhancements were approved and are effective as of 9/26/22
Impacted Audiences: Defined Contribution Participants - Specifically those who are active and 60+ or those who are rehired after retiring
For More Information: Contact your regional manager
What: The MERS Retirement Board approved plan amendments to allow new options to be made available to employers looking to close their existing 401(a) plans to new hires while freezing accrued benefits of existing employees.
Action Required: None
Key Dates: Effective immediately and as administratively feasible
Impacted Audiences: Employers offering Defined Benefit, Defined Contribution and/or Hybrid Plans
For More Information: Contact your Benefit Plan Coordinator
What: The MERS Retirement Board has approved an amendment that allows an employer to design a DROP that balances both the level of the participant benefit with the cost to the plan.
Action Required: None
Key Dates: Effective immediately
Impacted Audiences: Employers with a Defined Benefit Plan
For More Information: Contact the MERS Service Center at 800.767.6377
