2020 CARES Act
The Coronavirus Aid, Relief and Economic Security (CARES) Act is an estimated $2 trillion federal relief package designed to combat the harmful economic effects of the COVID-19 pandemic. The law looks to provide cash infusions to individuals, businesses, health care organizations and state/local governments through payments, loans and tax credits. The act also allows retirement plans, like the Dauphin County, PA Deferred Compensation Plan, to have more liberal distribution and loan provisions for participants affected by the COVID-19 pandemic. Retirement plans do not have to adopt these provisions; however, the Dauphin County Commissioners voted to add these provisions the Dauphin County, PA Deferred Compensation Plan to help employees who may be impacted by the pandemic. The plan document will be amended with these new provisions, but they will go into affect now so that relief can be provided when needed. Please read the handout from Alerus that details the provisions.
No RMD’s
In addition to more liberal distribution and loan provisions, required minimum distributions will be waived for 2019.
Not everyone will qualify
The ability to take corona-virus related distribution (CRD) applies to anyone who has been diagnosed or whose spouse or dependent has been diagnosed with COVID-19, or who is experiencing adverse financial consequences as a result of being quarantined, furloughed, laid off, experiencing reduced work hours or lacking child care because of the coronavirus. Business owners who have to close or reduce business hours would also qualify.
Additional Paperwork
For participants utilizing a CARES Act distribution, loan origination, or loan repayment, they will need to complete the CARES Act Certification form. Participants will self certify that they meet the criteria outline on the form that can be downloaded below.
Additional Help
To discuss the pros and cons of taking distributions or loan and its impact on your investment and/or retirement plan, you can contact the Plan’s investment advisory representative Stephen Hetrick.
To process a distribution or loan, please contact the Dauphin County Human Resources Department.