New policy allows penalty-free withdrawals for disaster relief

During a recent government meeting, key discussions centered around staffing changes and employee financial support in the wake of natural disasters.

The District Attorney (DA) is set to present a proposal for a part-time position that has been temporarily filled for the past 18 months. The DA will seek approval from the commission to formalize this position, which is not expected to have a significant fiscal impact but requires the commission's authorization for any extension beyond the current policy limits.

Another major topic was the donation of the Coliseum Booster Pump Station to Park City, valued at over $47,000. This initiative has been in the works for several months and is now moving forward.

Additionally, the meeting addressed a new provision allowing employees to withdraw funds from their 457 retirement accounts without incurring the usual 10% penalty in the event of a federally recognized natural disaster. Employees affected by such disasters could withdraw up to $22,000 from their accounts, with the option to repay the amount within three years. This change aligns with the Secure Act 2.0, which aims to provide financial relief to those impacted by significant emergencies.

The discussion highlighted the distinction between penalties and taxes, clarifying that while employees would not face penalties for early withdrawal, they would still be responsible for taxes on any gains from traditional accounts. The provision is specifically designed for large-scale disasters recognized by federal authorities, excluding smaller incidents like house fires.

Overall, the meeting underscored the government's commitment to supporting both staffing needs and employee welfare in times of crisis.