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House Co-Sponsorship Memoranda
House of Representatives
Session of 2013 - 2014
Regular Session
MEMORANDUM
| Posted: | April 5, 2013 09:58 AM |
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| From: | Representative Glen R. Grell |
| To: | All House members |
| Subject: | Title 24 - Compliance with provisions of federal Internal Revenue Code |
| In the near future, I plan on introducing an amendment to the Public School Employees’ Retirement Code. A simple change involves the deletion of a single sentence in a section of the Retirement Code that provides for the rights and duties of members of the Public School Employees’ Retirement System (PSERS). The existing language is inconsistent with the Minimum Distribution Requirements of the federal Internal Revenue Code (IRC). The proposed change is required to bring the PSERS Retirement Code into compliance with federal law, thereby protecting the tax-qualified status of the PSERS Fund. The language designated for removal requires that a PSERS member must file an application for retirement within seven years of attaining superannuation, or the member is deemed to have elected to receive only member accumulated deductions. The arbitrary time limitation on applying for a pension unfairly forces the forfeiture of an annuity to which a member would otherwise be entitled. Language contained in the federal IRC requires only that an individual begin the draw-down of pension funds by April 1st in the year in which the member attains age 70 1/2. This amendment is a simple but necessary change that will allow federal IRC Minimum Distribution Requirements to govern the member’s withdrawal of retirement savings, insure the member’s eligibility to collect their annuity, and preserves the tax-qualified status of the PSERS Fund. I invite you to join me in co-sponsoring this legislation. Please contact my office at 783-2063 if you have any questions. |
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| View Attachment | ||
Introduced as HB1204