The President Announces New Retirement and
Savings Initiatives

Over Labor Day weekend, the Department of Treasury (Treasury) and the Internal Revenue Service (IRS) issued a number of pieces of guidance that will be of great interest to governmental plans and employers.  President Obama announced new steps that, in the President's words, "make it easier for American families to save for retirement."  Among these steps were the following three revenue rulings: Revenue Ruling 2009-30, providing model auto-enrollment plan language; Revenue Ruling 2009-31, setting forth IRS standards for annual paid-time-off contributions to qualified plans; and Revenue Ruling 2009-32, setting forth IRS standards for paid-time-off-contributions to a qualified plan at termination of employment.  In addition, the president announced that the IRS has prepared new safe harbor notices (402(f) notices) in Notice 2009-68 -- one for general use and one for payments from a designated Roth account.  Effective September 8, 2009, the Treasury has also finalized amendments to 401(a)(9) regulations and 403(b) regulations to permit a governmental plan to comply with required minimum distribution rules by using a reasonable and good faith interpretation of Internal Revenue Code Section 401(a)(9).

If you have any questions about the retirement and savings initiatives, the safe harbor notices, or the final 401(a)(9) and 403(b) regulations, please contact Mary Beth Braitman, Terry Mumford, Lisa Erb Harrison, Katrina Clingerman, or your Ice Miller LLP Employee Benefits attorney.