Pension Reform Act of 2011: Update February 2013
Section 60 of the Pension Reform Act of 2011 (Chapter 176 of the Acts of 2011) allows certain ORP participants a one-time opportunity to change their retirement coverage to the Massachusetts State Employees’ Retirement System (MSERS). These notes provide an update on the Department of Higher Education’s progress in implementing Section 60.
Tax Issue: The Pension Reform Act requires the DHE and State Board of Retirement to solicit a ruling from the IRS on our ability to offer a second, voluntary choice of plans before anyone can be allowed to change retirement plans.
The two departments collaborated on drafting the request for a Private Letter Ruling from the IRS. The request was submitted during the first week of September. Although the IRS accepted the request, they are not compelled to act on it and issue a ruling. At this time, no one knows how they will react to the request.
Current Status: As of February, we have not heard from the IRS about this matter. Please note, however, that our outside counsel cautions that an early ruling would likely be a negative ruling.
Direct any questions you may have about implementation of Section 60, or the ORP in general to the Plan Administrator.
Matching Contribution Update: May 14, 2013
Pay Period End Date: May 4, 2013
Funds for this contribution should be transferred to the Program Providers within three to five business days from the date of this update. Your Provider may require several additional days to process the allocation and post the funds to your account.