SECURE 2.0: Changes affecting defined benefit (DB) plans
The SECURE 2.0 Act of 2022 (Div. T of Pub. L. No. 117-328) is intended to build on changes made by the Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019 (Div. O of Pub. L. No. 116-94).
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- Eliminate variable-rate premium (VRP) indexing (Sec. 349)
- Annual funding notice (AFN) enhancements (Sec. 343)
- Increase involuntary cashout limit to $7,000 (Sec. 304)
- Lump sum window disclosure (Sec. 342)
- Department of Labor (DOL) to review pension risk transfer guidance (Sec. 321)
- 420 transfers (Sec. 606)
- Increase in required minimum distributions (RMD) age (Sec. 107)
- Hybrid plans’ backloading testing (Sec. 348)
- Extended deadline to adopt amendments increasing benefits (Sec. 316)
- Mortality tables (Sec. 335)
- Section 415 limits for rural electric cooperative plans (Sec. 119)
- Distributions to retired public safety officers for health and long-term care premiums (Sec. 328)