Massachusetts Embraces EGTRRA!

July 26, 2002 (PLANSPONSOR.com) - The list of states still out of step with the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) is one shorter, following the Massachusetts legislature's overturn of the governor's veto.

With Massachusetts now in conformance, only three states – Wisconsin, North Carolina and Arkansas remain out of sync with EGTRRA’s pension provisions.

Override Ride

The Massachusetts Senate enacted a tax package (H.B. 5250) on July 25, 2002 that overrides Governor Jane Swift’s earlier veto of the tax package, mirroring the action of the Massachusetts House of Representatives on July 23. 

According to the American Benefits Council, the bill includes provisions for full conformity with federal law with respect to 401(a), 401(k), 403(b) and 457 plans and 529 plans.  The provisions are effective as of January 1, 2002.

On June 28, the Governor of Hawaii signed Senate Bill 2824 into law, which brought the Aloha State into line with the pension provisions of EGTRRA.

As for the remaining states:

  • Arkansas – the state legislature does not convene until 2003. The Arkansas Department of Finance and Administration anticipates that the General Assembly will retroactively adopt these provisions early during the 2003 legislative session
  • North Carolina – the General Assembly is expected to consider the conformity issue in the near future as legislators debate the budgetary impact of conformity.  The NC Department of Revenue has previously stated its support for conformity legislation.
  • Wisconsin – legislation bringing the state in line with the EGTRRA’s pension changes is currently tied up in a budget reform bill that is the subject of a legislative conference.


 

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