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State Govt Vesting Under HR1776

Guest Maja

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Guest Maja

The Portman-Cardin Bill HR 1776- Pension Preservation and Retirement Expansion Act includes a provision reducing the vesting schedule for defined benefit plans. Does this include state workers defined benefit plans also? I work for the State of New Jersey and am enrolled in the PERS pension plan which currently requires 10 years of service in order to be vested.

Thank you for your assistance.


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HR 1776 is here. http://thomas.loc.gov/cgi-bin/query/z?c108:H.R.1776:

Act section 302 amends IRC 411. Section 411 has no direct impact on plans sponsored by governmental organizations. Note that it could have an impact if the plan incorporates the same language or refers to the Code section by reference.

I have not inspected the new language, but a cursory reading indicates that the change here results in faster vesting for multi-employer plans.

I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.

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