A Message from Your NCRGEA Executive Director – April 15, 2020
As the stay-at-home declarative continues, the federal government continues to roll out programs, stimulus checks, and make adjustment to enable individuals who have investments to access and withdraw under relaxed regulations.
Here is an update from the Supplemental Retirement System regarding the options for those who have investments in the Supplemental Retirement System through the state:
The CARES Act has a number of provisions allowing eligible participants impacted by the coronavirus to access funds in their Supplemental Retirement Plans accounts (NC401(k), NC457 Plans and NC403(b) Program).Some of these provisions are “automatic” such as:
Waiver of the 10% penalty on early withdrawals;
Distribution can be recognized over 3 years for income tax purposes; and
Distribution is not subject to the 20% income tax withholding.
Other features require adoption by the Board of Trustees including:
Allowing eligible participants to take a distribution through December 31, 2020; and
Permitting repayment of distributions back into the Supplemental Retirement Plan account within three years.
In addition, the CARES Act allows eligible participants to defer plan loan repayments for one year.
The North Carolina Board of Trustees will meet Monday April 20th to review and consider the provisions of the CARES Act with the dual goals of supporting the retirement readiness of all of North Carolina’s public servants while providing options for those individuals most impacted by COVID-19.