Page 56 - NovDefComp

NAGDCA Conference 2019

Summary of Conference Sessions

The annual conference for the National Association of Government Defined Contribution Administrators
(NAGDCA) was held in New Orleans, Louisiana from September 8-11. The conference provides an excellent
opportunity to learn from key Washington personnel current events on the legislative, regulatory and IRS audit
front and to further hear from industry experts and peers about their best practices. Each year NFP
summarizes key conference issues and recommendations.

Conference presentations are currently on NAGDCA’s website at www.nagdca.org.
We encourage you to take the time to view the presentations.

THE IMPOSSIBLE DREAM – Conference opening session
This session was delivered by Matt Johnson, CEO of The Impossible Company, who focused on how stories
can help organizations redefine their strategy in today’s fast-paced and constantly evolving environment. He
discussed the “Art of Storytelling;” that is, how a good story can have a significant impact on employees’ view
of their organization and the “story they tell”. To be effective, the storyteller should: (1) tell a story that
resonates in today’s environment; (2) describe why a company is in business today; (3) address how the
company can help the listeners (clients) achieve their goals; and (4) how the stories address the listeners’
challenges.

WASHINGTON UPDATE
Pension rules are getting lots of attention on Capitol Hill and both the House and Senate have introduced
legislation that would effect many changes to defined contribution plans. Among the provisions that would
affect governmental plans are:
• Allowing roll-ins of Roth IRAs to match provisions of private sector defined contribution plans;
• Exempting Roth accounts from Required Minimum Distributions (RMDs) since the contributions are
made with post-tax monies;
• Eliminating the first of the month rule for new or increased contributions so that new employees and
those wanting to increase contributions may do so at any time;
• Permitting non-spousal beneficiaries to roll funds into their inherited accounts;
• Allow working participants to make withdrawals at age 59-1/2 without requiring separation from service;
• Exempt smaller accounts ($100,000 or less) from RMD calculations;
• Allow contributions of severance pay;
• Allow IRA contributions after age 70-1/2;
• Establish a new catch up limit of $10,000 for participants age 60 or over;
• Update mortality tables for purposes of calculating RMDs;
• Change the RMD date to age 72, currently at age 70-1/2.

If the RMD date changes to age 72, this would likely require a change to your Plan Document.