Terminating a “government” retirement plan
Terminating a “government” retirement plan
Source: Employee Plans News, Issue 2014-11, dated August 4, 2014
The Internal Revenue Service August 2014 Issue of Employee Plans News has a number of articles concerning terminating an employee defined retirement plan including the following [Click on the text highlighted in color to access the information posted on the Internet):
Also considered are Internal Revenue Code Section
401(a)retirement plan established and maintained for the employees of:
- the United States or its agency or instrumentality;
- a state or political subdivision, or its agency or instrumentality; or
- an Indian tribal government or its subdivision, or its agency or instrumentality (participants must substantially perform services essential to governmental functions rather than commercial activities.)
Other types of governmental plans include:
- 403(b) tax-sheltered annuity plans [These plans are also referred to as Tax Deferred Annuity Plans in which participation is typically limited to employees of an educational entity. See, for example, Education Law Article 8-C, SUNY’s Special Annuity Plan];
- 457 deferred compensation plans;
- qualified excess benefit arrangements; and
- Certain grandfathered 401(k) plans adopted by a governmental entity before May 6, 1986.
The IRS will also conduct a “webinar” on August 14, 2014 at 2:00, EDT, focusing on how the IRS defines the date of termination, final funding requirements, Pension Benefit Guaranty Corporation (PBGC) issues, reversions and what is needed in a notice of intent to terminate the plan..
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NYPPL Blogger Harvey Randall served as Principal Attorney, New York State Department of Civil Service; Director of Personnel, SUNY Central Administration; Director of Research, Governor’s Office of Employee Relations; and Staff Judge Advocate General, New York Guard.
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