403(b) plans (BenefitsLink.com)Headlines re 403(b) plans, gathered by BenefitsLink.comGuidance Overview Securities Laws and 403(b) Plans - Prospectus Delivery, Free Transferability, Rule 22c-2, and Other Things- (Found July 5, 2008 ) Excerpt: "One of the most striking differences between 403(b) plans and 401(k) plans is the way in which the Securities Act of 1933 and the Security Exchange Act of 1934 apply to them. Though the new 403(b) regulations attempt to make 403(b) plans look and act almost like 401(k) plans, the application of securities laws will make that objective difficult if not impossible to achieve without wholesale revision of the securities laws." (Baker & Daniels LLP)http://www.benefitsbizblog.com/2008/03/securities-laws-and-403b-plans.html Guidance Overview Plan Documents Required for 403(b) Arrangements (PDF)- (Found July 5, 2008 ) 1 page. Excerpt: "Final IRS regulations require an employer offering a 403(b) arrangement to adopt a written plan by January 1, 2009. This requirement applies to both ERISA 403(b) plans and non-ERISA 403(b) programs." (Prudential Retirement)http://www.prudential.com/media/managed/PlanDocs403b-CB-0308.pdf Draft of Best Practices for 403(b) Plans Information Sharing - Minimum and Comprehensive Data Elements (PDF)- (Found July 5, 2008 ) 17 pages. Excerpt: "This document sets forth certain best practices with respect to the data elements for information sharing between 403(b) plan employers or employer representatives and vendors. The document also identifies a basic file convention layout. The document does not define best practices for: (1) the methods and frequency of data transmission, or (2) information sharing with respect to specific plan transactions or events (e.g., loans). Best practices with respect to such...http://www.sparkinstitute.org/content-files/File/SPARK%20Inst%20403b%20Plans%20Info%20Shar... Guidance Overview Distributing 403(b) Annuities, Part II: The 403(b) Plan Distributed Annuity- (Found July 5, 2008 ) Excerpt: "The new 403(b) regulations permit the distribution of a 'fully paid individual insurance annuity contract,' as a distribution option upon the termination of a 403(b) plan. We envision this as a particularly useful option in plans which are funded with individually owned annuity contracts, contracts over which the employer has little-if any-control. It gives the employer the ability to relinquish all of its obligations related to these pesky sorts of arrangements without having to.http://www.benefitsbizblog.com/2008/04/distributing-403b-annuities-pa.html SPARK Seeks Comments on 403(b) Information Sharing Agreement- (Found July 5, 2008 ) Excerpt: "The SPARK Institute has released for public review and comment a draft sample Information Sharing Agreement (ISA) for 403(b) plan vendors and employers. The ISA and an exposure draft, 'Best Practices for 403(b) Plans Information Sharing -- Minimum and Comprehensive Data Elements,' summarizing what information will be shared among affected parties are available for review at http:www.sparkinstitute.orgcomments-and-materials.php. " (PLANSPONSOR.com; free registration required)http://www.plansponsor.com/pi_type10/?RECORD_ID=40989 Sample Agreement for Information Sharing between 403(b) Plan Sponsor and Vendor (PDF)- (Found July 5, 2008 ) Excerpt: "The SPARK Institute has prepared this sample ISA for the convenience of its members, and with the collective input of its members. The sample ISA is being made available to the public for consideration and comment in an effort to facilitate broad acceptance and use in the 403(b) plans community. Accordingly, the sample ISA is subject to change based on the comments received by The SPARK Institute." (The SPARK Institute)http://www.sparkinstitute.org/content-files/File/SPARK%20INST%20SAMPLE%20403_b_%20ISA%2004... 'Architect' of IRS 403(b) Regs Says Limited Formal Guidance Coming- (Found July 5, 2008 ) Excerpt: "Those waiting for additional guidance from the IRS dealing with 403(b) model plan language or information sharing agreements shouldn't hold their breath. So explained Robert Architect, of Tax Exempt and Government Entities (TEGE) at the Internal Revenue Service . . . ." (PLANSPONSOR.com; free registration required)http://www.plansponsor.com/pi_type11/?RECORD_ID=41033 Guidance Overview Should Nonprofits Switch from a 403(b) Plan to a 401(k) Plan Because of the Final 403(b) Regulations- (Found July 5, 2008 ) Excerpt: "With the new requirement for a 403(b) plan document starting in 2009, some nonprofits may be considering switching to a 401(k). 403(b) plans may be sponsored by nonprofits, public schools, or ministers. States, local governments and ministers do not have the ability to sponsor 401(k) plan in addition to a 403(b). This article is, therefore, directed at nonprofits that are not an agent or instrumentality of a state or local government and not created for the benefit of a...https://www.ftwilliam.com/articles/403b20080411.html Guidance Overview ERISA Exemption - David Levine and David Powell of Groom Law Group Answer Question Concerning the New IRS 403(b) Plan Regulations- (Found July 5, 2008 ) Excerpt: "An adviser has some charter school clients that have been utilizing the DoL safe harbor in Labor Reg. 2510.3-2(f) regarding being considered an Employee Retirement Income Security Act (ERISA)-governed plan. The adviser asks: One 501(c)(3) non-profit charter school has teachers that are employed by the charter school, but also eligible for the state pension plan and retirement system. This group believes that they should be considered as a public school, and therefore exempt from.http://www.plansponsor.com/pi_type10/?RECORD_ID=41031 Guidance Overview 403(b) Plan Sponsors Subject to New Reporting and Audit Requirements- (Found July 5, 2008 ) Excerpt: "If an employer fails to have a timely written plan (i.e., a document which contains basic provisions relating to eligibility, benefits, distribution availability and other limitations, and information relating to the annuity contracts or custodial agreements used by the 403(b) plan), any annuity contract or custodial agreement purchased by the employer will not qualify as a 403(b) plan, and contributions will be fully taxable." (McDermott Will & Emery)http://www.mwe.com/index.cfm/fuseaction/publications.nldetail/object_id/855b5f15-f84f-4c8c... |