Employer Update

Passed late last year, the SECURE 2.0 Act builds on recent changes to the rules around how people can save and withdraw money from retirement accounts. The federal legislation affects many aspects of plan administration and includes mandatory and optional provisions that range in effective date, from immediate to 2027.

One big change under the law, effective this year, is an increase in the required minimum distribution age from 72 to 73. This affects defined benefit and defined contribution plans.

VRS continues to review other provisions in SECURE 2.0, including 50+ catch-up contributions, and how each may affect payroll processes, business rules and overall plan administration. We will communicate further information to affected employers in the coming months.

Many employers administer supplemental plans other than those offered by VRS. Employers should consult their own benefits counsel and record keeper to review all provisions that may apply to the plans they administer directly.