PLANSPONSOR - August - September 2022 - 7

need [to withdraw], " Fields says.
Individuals can calculate the amount
of their RMD by dividing their accumulated
retirement plan account balance by
the updated IRS life expectancy, on the
agency's website.
" If you can do your taxes, you can do
this, " Fields says. " It's much simpler. The
IRS has three separate tables, depending
on whether you're the [asset] owner, the
beneficiary or if you have a spouse who's
more than 10 years younger than you-so
you have to pick the right chart. "
For example, a 76-year-old who
inherited an IRA would divide the account
balance by 14.1, per the IRS rules.
Fields says plan sponsors and their
recordkeeper partners, retirement plan
advisers
and
consultants must
take
notice of the change to translate it for
participants. " Anyone who is counseling
participants on their retirement plan
and their distribution options should
be talking about this change and what it
may mean, " she says.
Multnomah will review the updated
changes with clients at meetings, and
plan participants will likely get information
from their recordkeeper, Fields says.
Large tax bills and penalties await
individuals who fail
to adhere to
the
update. There are also possible penalties
for plan sponsors, because retirement
plan fiduciaries owe the same duties of
prudence and loyalty to participants who
are no longer employed by the company
as they do to active participants.
Plan participants with questions may
consult the IRS or contact their recordkeeper
or a tax accountant, Fields says.
" There are pretty steep penalties for
not taking your required distributions-
you'd end up having to take much more
than you would have,
if you ignore it, "
she says. " There are also penalties to plan
sponsors if it's discovered that your plan
participants aren't taking their RMD, so
it's in your best interest to make sure that
whoever's processing those-typically the
recordkeeper-is doing it appropriately. "
-Noah Zuss
More From Washington
And the Courts
Justice Department Ends
PSERS Probe
The Department of Justice has dropped
its investigation into the Pennsylvania
Public School Employees' Retirement
System. The department had been investigating
the pension fund since last
spring, when subpoenas indicated that
the FBI and prosecutors were seeking
evidence, at the system, of kickbacks
and bribes, and were probing possible
" honest services fraud " and wire fraud.
Reportedly, the pension fund, its executive
director and several PSERS officers
were being asked for information.
The investigation related to an incident
in December 2020, when PSERS'
board of trustees certified the contribution
rates for its members. Based on
calculations supplied by its general investment
consultant and another firm that
the retirement system's nine-year performance
figure was 6.38%, it did not raise
its contribution rate. Under the state's
" risk sharing " law, school employees and
taxpayers must contribute more when the
pension's
investment
portfolio
performance
dips below 6.36%.
Discovery of errors in the data used
in the calculations led to a review of all the
performance data, which revealed that the
actual nine-year figure was 6.34%. This
forced the board to recertify the member
contribution rate, calling for thousands
of teachers to up their contributions and,
ultimately, prompting the chief investment
officer and executive director to resign.
After
an
internal
investigation,
PSERS investment consultant Aon took
responsibility for the miscalculation,
pinning it on an accounting error, and
noted it had found data corruption in
some sub-composite market values, cashflows
and returns for April 2015. No one at
PSERS has been accused of wrongdoing.
More Time for Certain Plan
Amendments
The IRS has issued Notice 2022-33,
extending the deadlines for amending a
retirement plan or individual retirement
account to reflect certain provisions of
the Setting Every Community Up for
Retirement Enhancement Act, the Miners
Act and the Coronavirus Aid, Relief and
Economic Security Act.
For a qualified nongovernmental
plan-including an applicable collectively
bargained plan-the deadline to
amend it for provisions of the SECURE
Act and the regulations thereunder is
December 31, 2025. This extension also
applies to Section 104 of the Miners Act,
which lowered, from 62 years to 59.5
years, the minimum age to take allowable
in-service distributions from a qualified
pension plan.
The plan amendment deadline for
SECURE Act and Miners Act provisions
for a qualified governmental plan is 90
days after the close of the third regular
session, counting from December 31,
2023, of the legislative body with the
authority to amend the plan.
In general, the deadline by which a
Section 403(b) plan not maintained by a
public school must be amended for provisions
of the SECURE Act and the regulations
thereunder is December 31, 2025.
For a Section 403(b) plan that is maintained
by a public school, the deadline is
figured in the same way as for qualified
governmental plans.
According to the IRS notice, the deadline
for amending a plan to reflect the
CARES Act provision that waived required
minimum distributions for defined contribution
plans and IRAs for 2020 has also
been extended. The deadline to amend
a
nongovernmental
retirement
plan
is December 31, 2025, and to amend a
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