ICMA-RC Implements Pension Protection Act Provisions for Its Plan Sponsors

ICMA-RC is now providing its plan sponsors with an easy-to-use Pension Protection Act Plan Election Guide that outlines the provisions of the PPA and summarizes the impact the provisions have on 457 and 401 plans. The guide also provides them with flexibility to implement desired optional provisions.

The primary optional provisions include rollovers for non-spouse beneficiaries, emergency withdrawals for events relating to a participant’s beneficiary, and tax-free withdrawals for certain expenses of retired public safety officers. Also included is a clarification of the rules for plan transfers for permissive service credit purchases.

The guide is the latest in a series of tools ICMA-RC has given to its plan sponsors since the passage of the PPA in 2006. Additional information on the Pension Protection Act provisions is available on this Web site in the Pension Protection Act area of the Plan Rules section.