Coronavirus-Related Relief for Special Distributions From Retirement Plans Does Not Apply to the Central Pension Fund
As this global pandemic continues, a number of participants have asked whether the special distribution rules approved by Congress in the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) apply to the Central Pension Fund. The short answer is No, for the following reasons.
Those rules only apply to certain types of pension plans, such as 401(k) plans, 403(b) plans and IRAs that have been amended to take advantage of those rules. Moreover, the new rules are limited to certain coronavirus-related distributions. The Central Pension Fund is a defined benefit pension plan funded solely by employer contributions and is a qualified retirement plan under Internal Revenue Code Section 401(a). Therefore, the expanded special distribution rules found in the CARES Act DO NOT apply to your accrued benefit with the Central Pension Fund. Benefits under the Central Pension Fund can only be paid at the time of retirement or disability, and remain subject to the Plan’s eligibility requirements. For more information on the CARES Act’s special rules, you may wish to visit the IRS website at: