DRS Notice 24-008, Secure Act 2.0 Changes DCP Deferral Timing

DRS Notice 24-008
Date: April 12, 2024
Applies to: All DCP Employers
Subject: DRS Notice 24-008, Secure Act 2.0 Changes DCP Deferral Timing

The Department of Retirement Systems will soon begin the process to update the system that handles Deferred Compensation Program deferrals. We’re making this change as part of the Secure Act 2.0 law, whose purpose is to improve retirement savings options. The timing for DCP deferrals is one such option.

After the system is updated, deferrals for new voluntary enrollments, and deferral changes for established participants, will take place as soon as administratively possible instead of the first of the month following the request. Additionally, you may see new deferral amounts on your change reports earlier in the month. Please do not start, stop or change an employee’s deferral until it shows up on your report.

We expect to make the DCP deferral timing change by the end of May 2024. You will receive a second notice when we implement these changes.

If you have questions about this notice, please contact Employer Support Services at 360-664-7200, option 2, or 800-547-6657, option 6, option 2.