2020 Spring HR Insider Newsletter

SPRING 2020

Retirement

ICMA-RC

TCDRS While concerns over COVID-19 have sent the stock market tumbling, remember that your TCDRS portfolio was designed to handle swings in the financial markets. In fact, your retirement savings with TCDRS are not affected in any way by COVID-19. Your account will keep earning 7% compound interest in 2020 and in the years to come. However, due to COVID-19, TCDRS is no longer conducting walk-in counseling sessions and is limiting all staff non-essential travel through May - this includes the retirement presentation originally scheduled at the EAA. If you would like to reach out to TCDRS, representatives are still available remotely. You may contact TCDRS Member Services at 800-823-7782. A representative can provide services including online counseling. As soon as the EAA is able, we will schedule another on-site visit with a TCDRS representative. • who experiences adverse financial consequences as a result of being quarantined, furloughed, or laid off; having work hours reduced; being unable to work due to lack of child care due to COVID-19; or closing or reducing hours of a business owned or operated by the individual due to COVID-19. Note: Employees will be able to acknowledge that they meet one of the above qualifying criteria by completing a self-certification form provided by ICMA-RC. Coronavirus-Related Distribution (CRD) – applicable to a 401(a) Money Purchase plan: • Code Section 72(t), which applies an additional 10% tax on early withdrawals, is waived for withdrawals up to $100,000 across all retirement plans or IRAs for a qualified participant. • Those individuals may prorate the payment of applicable taxes on the income from the withdrawal over a three- year period. • The withdrawal amount may be paid tax-free back to the plan over the next three years. • Repayments of these withdrawals would not be subject to the retirement plan contribution limits. Note: A participant must meet the plan’s age requirements of 59 1/2 to receive an in-service withdrawal from their 401(a) Money Purchase Plan. Loan Suspension Available to Plan Participants: • Qualified participants may delay the due date for loan repayments due between March 27, 2020, and December 31, 2020, for up to one year and extend the maximum five-year repayment period accordingly. • Participants must request the option before payroll repayments are stopped. If you have any questions regarding any of our benefit plans, please reach out to Hilda Campos. We are currently working dilligently with ICMA-RC to implement the new Coronavirus Aid, Relief, and Econo- mic Securities (CARES) Act provisions that are applicable to the 401(a) and 457(b) plans as quickly as possible. Please see below for a description of these provisions: The CARES Act provides relief for a “qualified” participant: • who is diagnosed with COVID-19; or • whose spouse or dependent is diagnosed with COVID-19; or

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