Guest Article

(From the April 22, 2002 issue of Deloitte's Washington Bulletin, a periodic update of legal and regulatory developments relating to Employee Benefits.)

EGTRRA Nonconforming States-- and Then There Were Nine

There are now only nine states that have not adopted EGTRRA conforming legislation. Since mid-March, Indiana (March 28), Iowa (April 4), Maine (March 25) and South Carolina (April 16) have joined the list of conforming states.

Of the nine remaining nonconforming states, final approval of conforming legislation appears imminent in Georgia and Kentucky (bills in those states are awaiting their governors' signatures). In Hawaii, both the House and Senate have passed conforming legislation, and conferees have been appointed to resolve differences between the two bills.

Meanwhile, conforming legislation is still moving along in two other key states. The Arizona House Ways and Means Committee has approved conforming legislation based on a bill the Senate passed on March 21. In California, the General Assembly's Committee on Appropriations just approved a partial conformity bill the Senate already has approved. There are no new developments to report in Wisconsin.

The only other states with EGTRRA conformity issues are Arkansas, Massachusetts, and North Carolina. Arkansas is expected to pass conforming legislation, but that will not happen until the legislature reconvenes in 2003. The outlook in Massachusetts and North Carolina remains somewhat bleak. However, it is possible that the situation will change in North Carolina when that state's General Assembly reconvenes in late May.

The information in this Washington Bulletin is general in nature only and not intended to provide advice or guidance for specific situations. If you have questions or need additional information about this article, please contact Martha Priddy Patterson (202.879.5634) or Robert B. Davis (202.879.3094). Copyright 2002, Deloitte.