| APRIL | 2020 |
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CalPERS adopts CARES Act provisions for 457 Plan The Coronavirus Aid, Relief and Economic Security (CARES) Act was signed into law on March 27, 2020 to help ease some of the financial pressures facing Americans in the wake of COVID-19. If an employee has been impacted by COVID-19 and self-certifies that he or she meets the Eligibility Requirements, the CARES Act would allow more access to retirement savings through a Coronavirus-related distribution (CRD). Distributions are participant-directed and do not require agency involvement or approval.
CARES Act resources for employees If your employees ask about taking a CRD from the CalPERS 457 Plan, please direct them to call 800-260-0659 for assistance and encourage them to weigh the immediate benefit of taking a loan or plandistribution. Withdrawing funds when the market has decreased could affect future rebound opportunities and have long-term consequences that may impact their retirement savings. CARES Act suspends required minimum distributions for 2020 Required minimum distributions (RMDs) for 2020 are waived for the CalPERS 457 Plan. The waiver also applies to individuals who attained age 70½ in 2019 and elected to delay until a required beginning date of April 1, 2020. Individuals impacted by the 2020 RMD waiver will receive a letter with more information.
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Plan administration services provided by Voya Institutional Plan Services, LLC. Information from registered Plan Service Representatives is for educational purposes only and is not legal, tax or investment advice. Local Plan Service Representatives are registered representatives of Voya Financial Advisors, Inc. (member SIPC). This newsletter was prepared by Voya Financial®. Articles by Voya are not intended to provide tax or investment advice. Any opinions, advice, statements, services, offers or other information or content expressed or made available herein has not been independently verified by the California Public Employees’ Retirement System (CalPERS), nor does it necessarily state or reflect the views of CalPERS. Reference herein to any specific commercial products, processor service by trade name, trademark, manufacturer or otherwise does not necessarily constitute or imply its endorsement, recommendation or favoring by CalPERS. © 2020 Voya Services Company. All rights reserved
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