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CARES Act

Good afternoon,

The CARES Act (federal stimulus package passed last month) allows employees affected by the COVID-19 pandemic more flexibility with their 457 and 401(a) retirement accounts at Grant PUD. The changes are only available to employees who meet certain criteria. You will need to self-certify with ICMA-RC that you meet the applicable criteria if you would like to use the provisions.

A qualifying participant is one:

(1) who is diagnosed with COVID-19;

(2) whose spouse or dependent is diagnosed with COVID-19; or

(3) who experiences adverse financial consequences as a result of being quarantined, furloughed, laid off, having work hours reduced, being unable to work due to lack of childcare due to COVID-19, closing or reducing hours of a business owned or

operated by the individual due to COVID-19.

If you currently have a loan in your deferred compensation account, you can delay any loan repayments that are due before December 31, 2020 for up to one year and extend the loan repayment period accordingly. Interest will continue to accrue on deferred payments.

If you take a new loan under the existing provisions in your ICMA accounts, you can also delay the repayments by one year, if you qualify. Interest will continue to accrue on deferred payments.

The CARES Act has some other provisions involving the withdrawal of funds from accounts that are optional and have not been adopted by the Grant PUD Deferred Compensation Committee at this time. (See note describing those optional provisions below.)

The provisions for participants who are no longer employed with the District are different. Separated participants need to contact ICMA-RC to determine the options available to them.

If you have any questions or comments regarding these provisions, you can send an mail to This email address is being protected from spambots. You need JavaScript enabled to view it.

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Note:

Optional CARES Act provisions that have NOT been approved for Grant PUD employees:

  1. Maximum loan amounts are increased from the lesser of $50,000 or 50% of your account balance to the lesser of $100,000 or 100% of your account balance
  2. Distributions up to $100,000 may be taken from your account without paying the 10% penalty and taxes on the distribution may be spread out over 3 years. The distributions can also be repaid.

Darla Stevens

Senior Manager, HR