Washington Perspective

On April 9, 2020, the Internal Revenue Service (IRS) released Notice 2020-23. This guidance extends the deadlines until July 15, 2020 for certain actions required by the federal tax rules that are otherwise due to be performed on or after April 1, 2020, and before July 15, 2020.

On March 12, 2020, Rep. Jimmy Panetta (D-CA) introduced the Public Service Retirement Fairness Act to permit 403(b) plans to invest in Collective Investment Trusts (CITs).

The $2 trillion stimulus bill, known as the Coronavirus Aid, Relief, and Economic Security (CARES) Act, was signed into law on March 27, 2020, and addresses a range of economic and health-related issues resulting from the COVID-19 pandemic. The following are retirement-related provisions and implications of the CARES Act:

Many provisions of the Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019 Act became effective on January 1, 2020. Because of this, providers, plan sponsors and industry groups began to immediately seek guidance and relief from the Internal Revenue Service (IRS) and the Department of the Treasury following the SECURE Act 's enactment on December 20, 2019.

The Setting Every Community Up for Retirement Enhancement (SECURE) Act was signed into law in late 2019 and is the first significant retirement legislation in more than a decade. ICMA-RC and Mike Hadley, partner in the law firm Davis & Harman, LLP, presented a discussion of the SECURE Act and its impact on governmental retirement plans. View the recorded webinar now. If you have any questions, please reach out to your ICMA-RC representative.

As part of America Saves Week 2020 (ASW), which takes place February 24 – February 29, 2020, ICMA-RC is spreading the message of saving successfully by urging public sector employees to assess their 2020 savings goals and take the necessary actions to make sure they are on track for a secure retirement.

On December 20, 2019, President Trump signed into law a $1.4 trillion spending bill to fund the federal government through the end of its fiscal year (September 30, 2020). Attached to the bill was the Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019; the first significant pension reform in a more than a decade.

On Nov. 7, 2019, the Department of Treasury and the Internal Revenue Service proposed regulations to update the life expectancy and distribution period tables used to calculated required minimum distributions (RMDs) from retirement plans and IRAs.

On October 23, 2019, the Department of Labor (DOL) released a proposed rule that would create a new voluntary safe harbor to allow employee pension benefit plans to communicate certain plan-required notices and disclosures electronically.

On November 6, 2019, the IRS announced the various adjustments applicable to retirement plan contribution limits for 2020.