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Important legislative pension changes coming in 2016
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Dear MPFFU Local President/Union Leader,
Please find attached information regarding an upcoming legislative change that will impact your retirement planning options, effective January 1, 2016.
If you, or any of your members, separate from service at or after age 50, accounts that are rolled in to your Nationwide 457(b) Deferred Compensation Pan will be accessible without triggering a 10% early distribution penalty. This includes outside accounts such as IRA's, 401(a) accounts, and certain annuity withdrawal options available in some defined benefit pension plans. Other 457(b) plan accounts can continue to be rolled in, and are still accessible at any age upon separation from service.
Additionally, separated public safety employees can also withdraw up to $3,000 from his/her deferred compensation accounts annually, tax-free, to pay for qualifying health insurance and/or long-term care insurance premiums. Together, these benefits may provide more flexibility and options for your members, as they approach retirement age.
Nationwide is committed to our partnership with both the IAFF and the MPFFU. If the Nationwide 457(b) plan is already available to your members, thank you for your partnership. If the Nationwide plan is not currently offered in your municipality, please reach out to me to schedule an on-site meeting, where one of our Retirement Specialists will meet with you in person to have an open and honest discussion about what we have to offer your members. As the laws, markets, and other factors (health care costs, social security, etc) continue to change, Nationwide is committed to helping professional firefighters successfully plan for, and live in, retirement.
Thank you.
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