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Required Minimum Distributions from the Supplemental Pension Plan Waived for the Remainder of 2020

Temporary changes that will be made to the Directors Guild of America Producer Pension Plan Supplemental Benefit Plan (the “Supplemental Plan”) effective immediately, in response to emergency COVID-19 legislation that was just passed by Congress on March 27, 2020.

As you may have heard, Congress passed the Coronavirus, Aid, Relief, and Economic Security Act (“CARES Act”), which makes certain changes to distribution options for retirement plans, among other things. Specifically, for defined contribution plans (like the Supplemental Plan), the CARES Act waives all required minimum distributions for 2020, defined under the Plan as “Required Minimum Distributions,” that would otherwise be required to be distributed to participants under the terms of the plan. What that means for you is:

  • The government has granted relief from the requirement that you take this taxable distribution with payments beginning April 2020 or later. Accordingly, the Supplemental Plan will no longer make Required Minimum Distribution payments for the remainder of 2020.
  • If you would still like to take a distribution, you can still elect to receive benefit distributions from the Supplemental Plan in 2020, provided you complete the required paperwork and satisfy any applicable eligibility requirements. These distributions, however, will not be characterized as “Required Minimum Distributions,” and may be eligible for rollover. The tax treatment of such distributions may also differ. You may be required to complete a new benefit application or complete other certifications required by the Supplemental Plan in order to request a new distribution in 2020. The timing of any distribution elections will be based on the terms of the Plan.
  • If you have previously completed a retirement application and elected to receive Partial Distributions from the Supplemental Plan, those distributions will continue in accordance with the terms of your election.
  • The Supplemental Plan will resume paying Required Minimum Distributions in January 2021.
  • The Directors Guild of America Producer Pension Plan Basic Benefit Plan is not affected by the Required Minimum Distribution provisions of the CARES Act, and will continue to make Required Minimum Distributions as scheduled for the remainder of 2020.

We remain committed to helping you with questions about your benefits during these difficult times. If you have any questions about these changes, please give us a call at (323) 866-2200, Ext. 404 or email us at pension@dgaplans.org.