The Coronavirus Aid, Relief, and Economic Security Act permits a “qualified individual” to certify to the employer that they qualify to elect a coronavirus-related distribution (CRD). A plan sponsor may wish to consider offering CRDs during 2020 from a single employer defined benefit plan as well as, or in addition to, a CRD from its defined contribution plan.
Insight
If the SECURE 2.0 bill becomes pension law plan sponsors and governance boards will need to assess the impact of this mandatory eligibility change for their retirement programs.
Benefits Alert: Coronavirus distributions consideration for DB Plans under the CARES Act
The Coronavirus Aid, Relief, and Economic Security Act permits a “qualified individual” to certify to the employer that they qualify to elect a coronavirus-related distribution.