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News & Views | Q4 2020 Page 2 of 4

to attend. Offer incentives for new enrollments or contribution increases. An employer match is an obvious incentive, but if your
plan doesn’t offer that, other incentives can be prize drawings, management recognition, or parties for the teams with the most
participants, new enrollments, or increases. Your plan provider may be able to help support your incentive programs, too.
NAGDCA offers a summary of the 2019 award-winning strategies and each winner’s program details at this link. Your NFP advisor is
also here to help you brainstorm enrollment and engagement strategies!
GOVERNMENTAL ACCOUNTING STANDARDS BOARD (GASB) ISSUES NEW STATEMENT

The GASB has issued a new statement, GASB 97, pertaining to Governmental Deferred Compensation Plans. The Statement requires
that a 457 plan be classified as either a pension plan or an other employee benefit plan. NFP has discussed the statement with
public sector auditors and it appears that most plans will be defined as other employee benefit plans. The statement is effective for
fiscal years ending after June 15, 2021. NAGDCA provided comments to GASB during the development of Statement 97, and their
summary of the statement and its impact on governmental plans can be found here.

GASB typically issues an Implementation Guide prior to the effective date, to assist governmental entities in implementing the
required changes. No Implementation Guide for Statement 97 has yet been issued; NFP strongly recommends that plan sponsors
consult with their Finance department and their auditors for preliminary guidance about if and how the statement will affect their
financial reporting.

IRS PROVIDES TEMPORARY RELIEF FROM SIGNATURE REQUIREMENTS

Earlier this summer, the IRS issued Notice 2020-42, authorizing temporary administrative relief to plan participants by allowing
remote/electronic signatures for certain elections for their retirement savings plans. The change allows the “physical presence
requirement” for signatures to be waived and participants may use electronic signatures in most cases.
The change is temporary only, for electronic signatures during the period January 1, 2020 through December 31, 2020. It
accommodates shutdowns and social distancing guidelines and is primarily intended to help facilitate coronavirus-related
distributions permitted by the CARES Act. The change is allowed, however, for qualifying participant elections outside of the
CARES Act.
State laws vary in regard to physical signature requirements. Notice 2020-42 relaxes the federal requirement for signatures. It will
be important for plan sponsors to also know what their state laws require, and under what circumstances their state may allow
remote/electronic signature.

You can read the full text of Notice 2020-42 here, and the IRS’ summary here.

NAGDCA CONFERENCE GOES VIRTUAL

With the annual NAGDCA conference being cancelled this year, NAGDCA has created a virtual interactive learning opportunity for
members – NAGDCA Connect.
NAGDCA Connect is launching in October, coinciding with National Retirement Security Month. A variety of topical sessions and
small group discussions will be offered throughout October, providing new opportunities to learn and network with peers.

For more information about NAGDCA Connect, click here.
WE NEED A NEW TRUSTEE!

Trustees are an integral component of developing a well-run and -managed plan. Trustees are responsible for ensuring that fiduciary
duties are addressed and carried out, that the plan is competitively priced, and that it offers features and benefits that make it
attractive to employees. Occasionally a vacancy occurs on the oversight committee or board, and a replacement must be selected
to fill the vacancy. What are some important considerations when recruiting and retaining new trustees?

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