The National Association of Government Defined Contribution Administrators (NAGDCA) has released a SECURE 2.0 summary that reviews the provisions impacting governmental defined contribution (DC) plans.
The summary highlights 38 out of the 90 provisions in the legislation dedicated to governmental plans such as the saver’s match, rules on multiple employer 403(b) plans, withdrawals for emergency expenses, hardship withdrawal rules for 403(b) plans, and more.
“We’re pleased to offer this tool to our members and the broader community of government defined contribution plan sponsors,” stated NAGDCA Executive Director Matt Petersen, in a statement. “Our hope is that this Summary will help them more easily navigate the many provisions particular to the plans they offer.”
Along with the new provisions came upcoming dates and mandates for employers and financial advisors to look out for. NAGDCA’s summary includes the effective dates on the 38 provisions summarized—as many do not take effect until 2024, 2025, or later—along with an explanation of the new law and whether it is optional or mandatory for plan sponsors.
The summary offers a detailed analysis for governmental DC employers wanting to implement the retirement reform legislation into plans. SECURE 2.0 was not only revolutionary for the private sector workforce and 401(k) plans – it also marked a vital step for 403(b) plans who were previously exempt from provisions in the SECURE Act of 2019.
“Often overlooked is the fact that retirement benefits are a critical workforce recruitment and retention tool for government employers,” said Lynne Ford, CEO and President of nonprofit financial services company MissionSquare Retirement, in a previous story for 401(k) Specialist. “This Congressional action can achieve the dual goals of fortifying workers’ retirement security and helping state and local policymakers facing workforce challenges,” Ford said.
SEE ALSO:
- How SECURE 2.0 Will Benefit Public Sector Workers
- Great SECURE 2.0 Advice for Advisors: VCI Industry Leaders Summit
- Tax Credits Under SECURE 2.0 Expand Small Business Coverage
Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with over six years of experience and a passion for telling stories and reporting news. Amanda received her degree in journalism and government and politics at St. John’s University. She is originally from Queens, New York, but now resides in Denver, Colorado with her partner. In her free time, Amanda enjoys running, cooking, and watching the latest drama show.
