Coronavirus Impact on Retirement Plans

PSCA has compiled a list of resources below regarding the impact of the Coronavirus on retirement plans. This will be frequently updated as PSCA continues to monitor the situation.

PSCA also conducted a survey of plan sponsors to see how they are responding, available here. 

A number of recordkeepers/TPAs are already reaching out to plan sponsors regarding decisions about the optional provisions of the CARES Act, notably COVID-19 related distribution and loan options. While some are waiting for instructions from plan sponsors, others have – at least initially – made some assumptions. ARA has created a reference table, updated regularly. 

FAQs

• CARES Act Administrative Q&As (ARA, April 8, 2020)
• CARES Act Retirement Provisions FAQ (Sen. Chuck Grassley, April 2, 2020)
• FAQs (PSCA, April 3, 2020)
• NQDC FAQs (Lockton, March 30, 2020)
• COVID-19 FAQs: For Employee Benefits & ExecutiveCompensation (McDermott Will & Emery, March 30, 2020)
   

Overview

• PSCA Webinar: Coronavirus Relief Update (Members only)
• CARES Act – Optional or Required? (Robert M. Richter, ARA, April 12, 2020)

             Part 1 – Distributions
             Part 2 - Loans
             Part 3 – RMD Waivers

• Webinar - Coronavirus Relief Update (PSCA, March 30, 2020)
• Trump Signs Coronavirus Stimulus Legislation with Retirement Relief into Law (PSCA, March 27, 2020)
• Senate Approves Coronavirus Stimulus with Retirement Relief (PSCA, March 26, 2020)
• COVID-19 Layoffs—Partial Retirement Plan Termination? (TRI-AD, March 24, 2020)
• COVID-19 Retirement Plan Q&As for Employers (Troutman, March 24, 2020))
• The Families First Coronavirus Response Act (The Wagner Law Group, March 20, 2020)
• Employee Benefits Questions and Answers Related to COVID-19 (Hanson Bridgett, March 19, 2020)
• Coronavirus Check-Up for Retirement Plans (Groom Law Group, March 19, 2020)

Plan Design Changes

• Suspending or Reducing Safe Harbor Contributions (The Wagner Law Group, March 24, 2020)
• FAQs: Can I Suspend the Safe Harbor Contribution? (Retirement Management Services, March 19, 2020)
• Employer Actions for 401(k) Plans Sickened by Coronavirus (Dickinson Wright, March 19, 2020)
• Employer Responses to COVID-19: Suspending Employer 401(k) Contributions (Cohen & Buckmann, P.C., March 19, 2020
• Benefits Guidance in the Time of COVID-19: Monitoring Retirement Plan Investments and Participant Communications (Epstein Becker Green, March 18, 2020)
   

Withdrawals and Loans

• How DC Plans Should Prepare for Missed Loan Repayments (Callan, March 25, 2020)
• Updates on Hardship Withdrawals Amid the COVID-19 Crisis (Morgan Lewis)
• Hardship Withdrawals Amid the COVID-19 Crisis (MorganLewis, March 21, 2020)
   

Required Minimum Distributions (RMDs)

• Legislation to be Introduced to Suspend RMDs for 2020, Exempt Social Security Income from Taxation (Ascensus, March 19, 2020)

Other

• Severance of Employment, Lay-off, or Furlough? (Robert M. Richter, March 30, 2020)
• COVID-19 Impact on Executive Compensation (Leave of Absence) (Proskauer, March 24, 2020)
• COVID-19 and Withdrawal Liability (JacksonLewis, March 20, 2020)