Headlines about "403(b) plans"

Gathered from the web by the editors at BenefitsLink.com.
[Guidance Overview] Final Fee Disclosure Regs Contain Important Relief for 403(b) Plans
"As with everything 403(b), there are going to be complications, as it is not a totally carte blanche of pre-2009 'frozen' contracts. There will be odd circumstances, like where vendors who insist on employer approval on loans and distributions from those contracts (but the price of that insistence will be 408(b)(2) disclosure)." (Business of Benefits, Robert J. Toth Jr.)

[Guidance Overview] DOL Finalizes, Delays 401(k) Fee Disclosure Rules
"The final regulations 'strongly encourage' service providers to offer plan fiduciaries a 'guide' or summary of their disclosures. The DOL included a sample guide as an appendix to the final rule. Debate about whether to require such a summary disclosure is rumored to have delayed the release of the final rules. For now, the summary is voluntary, but the DOL strongly hinted that it may make the summary mandatory in future regulations." (Benefits in Brief)

[Guidance Overview] Final ERISA Section 408(b)(2) Regulations Include Significant Differences from Interim Rules
"These regulations make several significant changes . . . including: [1] Excluding certain frozen IRC Section 403(b) plans issued before January 1, 2009 from coverage under the regulations; [2] Enhancing the information relating to 'indirect compensation' required to be disclosed; [3] Adding certain investment-related disclosures to facilitate compliance with DOL regulations under ERISA Section 404(a); [4] Extending the effective date to July 1, 2012. This has the effect of delaying the effective date of most participant-level disclosures under ERISA Section 404(a) to August 30, 2012." (Practical Law Company)

[Official Guidance] Proposed IRS Regs on Longevity Annuity Contracts
"This document contains proposed regulations relating to the purchase of longevity annuity contracts under tax-qualified defined contribution plans under section 401(a) of the Internal Revenue Code (Code), section 403(b) plans, individual retirement annuities and accounts (IRAs) under section 408, and eligible governmental section 457 plans. These regulations will provide the public with guidance necessary to comply with the required minimum distribution rules under section 401(a)(9). The regulations will affect individuals for whom a longevity annuity contract is purchased under these plans and IRAs (and their beneficiaries), sponsors and administrators of these plans, trustees and custodians of these IRAs, and insurance companies that issue longevity annuity contracts under these plans and IRAs." (U.S. Internal Revenue Service)

[Official Guidance] Text of Final 408(b)(2) Regs on Fee Disclosures to Plan Fiduciaries by Covered Service Providers (PDF)
109 pages. 'This document contains a final regulation under the Employee Retirement Income Security Act of 1974 (ERISA or the Act) requiring that certain service providers to pension plans disclose information about the service providers' compensation and potential conflicts of interest. These disclosure requirements are established as part of a statutory exemption from ERISA's prohibited transaction provisions. This regulation will affect pension plan sponsors and fiduciaries and certain service providers to such plans." (U.S. Employee Benefits Security Administration)

[Guidance Overview] Second DOL 'Fact Sheet'; Description of Major Changes to Final Fee Disclosure Rule
"The final rule's effective date has been extended to July 1, 2012, to allow additional time for compliance." (U.S. Employee Benefits Security Administration)

The Making of The 403(b) Model Disclosure Form
"These [403(b)] plan participants are not fiduciaries, and often do not have anyone to be able to collect and compare data on their behalf. They are sold investment products directly. So it really becomes a very simple issue for that school teacher or administrator: how much sales commissions is my investment generating; what services am I getting in return; is there a way for me to compare it all; and how can I reasonably access comparative data on the investments themselves?" (Business of Benefits, Robert J. Toth Jr.)

Unraveling The Mystery of 401(k) Disclosures
"Sponsors will be required to present information about the investment options in the retirement plan in a chart that allows plan participants to compare fees and expenses . . . . Plan sponsors can use a model chart developed by the Labor Department or they can develop their own." (MarketWatch)

New Fee Disclosure Solution Released By NEA, NTSAA & ASPPA Joint 403(b) Taskforce
"Partners of the 403(b) Transparency Taskforce including the National Education Association (NEA), the National Tax Sheltered Accounts Association (NTSAA) and The American Society of Pension Professionals & Actuaries (ASPPA) today launched the 403(b) Model Disclosure Form -- the first ever transparency standards for disclosure of fees and services in the public school 403(b) marketplace." (American Society of Pension Professionals & Actuaries)

403(b) Model Disclosure Form (Jan. 2012)
"This form is designed to provide [you, a 403(b) plan participant,] with the ability to easily compare detailed information regarding the investment options available to you. It is designed to provide you with a snapshot of the critical information needed when selecting an investment, including the services to be provided to the participant, the fees to be charged to the participant, investment information, the commissions payable to the persons who provide services to the plan, and other payments to third parties." (ASBO, NEA & NTSAA Joint 403(b) Taskforce)

[Opinion] The Savings Crisis of Working Americans: The Retirement Industry Call to Action
"[I]f our society does not acknowledge and address the coming retirement savings shortfall, the American dream of retirement will most certainly become a nightmare. . . . Americans must save more for their retirement." (Legg Mason Retirement Advisory Council)

Pushback from Disclosure of Costs to Participants: Too Much 401(k) Sunshine?
"[R]ecord keepers for some plans are already experimenting with new ways to explain fees to retirement savers. And in at least one case, those disclosures are raising more questions than employers or investment advisers want to answer." (Wall Street Journal)

New Tool to Clearly Disclose 403(b) Fees
"[A]n industry task force, including the National Education Association, today will unveil a tool [called called the 403(b) Model Disclosure Form] that will clearly disclose 403(b) plan fees." (USATODAY.com)

[Opinion] NTSAA and ASPPA Letter on the Inclusion of 403(b) Plans in the Prototype Program
"On January 23, 2012, NTSAA and ASPPA submitted comments to [IRS] in support of the inclusion of 403(b) plans in the prototype program for pre-approved plan documents. IRS officials have recently indicated that budget concerns may result in a reexamination of whether to include 403(b) plan documents in the pre-approved plan program. NTSAA and ASPPA believe that a prototype program for 403(b) plans is essential for the proper administration of the tax laws and that it would be a mistake to abandon this integral component of 403(b) compliance." (American Society of Pension Professionals & Actuaries/National Tax Sheltered Accounts Association)

[Opinion] Is ASPPA Really Interested in Disclosure to 403(b) Participants? Here Is Their Chance to Prove It
"While I think Single Vendor [for 403(b) programs] is the best route, I am also a realist and understand that a single vendor environment is not going to happen overnight . . . . It got me thinking about what can be done to protect current participants who are stuck in a non-oversight multi-vendor program or even a program that does have oversight but has multiple vendors. . . . I am calling on ASPPA to . . . require that those who want to work with public school employees and give 'advice' be a fiduciary and those that sell product must disclose they are NOT advice givers and NOT acting as fiduciaries." (The Meridian Blog, authored by Scott Dauenhauer CFP, MSFP, AIF)

Best Practices for 403(b)s Subject to Fee Disclosure Rules
"[T]he NTSAA Fee Transparency Task Force is in the final stages of the development of a fee disclosure document patterned after the DoL model comparative fee chart. The document will be available for non‐ERISA employer plans in the belief that employers and participants will benefit from total transparency as they exercise their freedom to choose their own investment options, and financial advisers. It is expected that the Task Force will launch the new document in the first quarter of 2012." (PLANSPONSOR.COM)

Can a Professional Retirement Plan Advisor Really Make That Much of a Difference? (PDF)
"This survey of 409 employer offering a 401(k) or a 403(b) plan completed in September 2011 found that sponsors who partner with a Professional Retirement Plan Advisor enjoy superior retirement outcomes for their participants, superior understanding of fiduciary issues, improved plan designs, improved plan arrays, improved overall asset allocation among plan participants, more reasonable fees, and greater confidence in plan compliance and investment options." (Retirement Advisor Council / EACH Enterprise, LLC)

Teachers' 403(b) Plans Becoming More Like Corporate 401(k) Plans
"Much of the current change is being driven by Internal Revenue Service rules that began taking effect in 2009 and that give plan sponsors administrative and compliance responsibilities for employees' 403(b) investments. Change also is coming as growing numbers of teachers face cuts to their traditional pensions, giving them more incentive to sock away money in 403(b)s, consultants and school officials say." (The Wall Street Journal)

2011 NTSAA 403(b) Compliance Resolution Summit
"The third annual NTSAA 403(b) Compliance Resolution Summit attracted a large gathering of product providers, third party administrators, and resource people from the Department of Labor, Internal Revenue Service, American Institute of Certified Public Accountants, the Association of School Business Officials, the 501(c)(3) community, and legal firms for open dialogue on best practices to contribute to the operation of compliant 403(b) plans. All three of the Summits have contributed greatly to the resolution of what were systemic problems through the adoption of best practices that most in the industry can follow. The result has been the standardization of processes and procedures that most can utilize for a smoothly operating 403(b) plan." (National Tax Sheltered Accounts Association via American Society of Pension Professionals & Actuaries)

[Opinion] Those 403(b) RMD Amendments and Corporate Resolutions
"Some vendors are presenting [RMD amendments for 403(b) plans] to plan sponsors for their signature by year end, as the vendor may have taken it upon itself to generally waive these requirements for those 403(b) customers with individual contracts." (Robert J. Toth, Jr., Business of Benefits)

CalSTRS' Julia Durand Discusses Challenges of Public DC Plans
"Julia Durand, the president of NAGDCA and a director at CalSTRS, discusses the unique challenges facing public defined contribution plans with P&I online editor Matthew Wurtzel." (Pensions & Investments; free registration required)

Father of 401(k): 'Blow Up the System and Restart'
"Ted Benna, the 'father' of the 401(k) believes the plans have become to complex and are not working the way they should. Imagine what he would think of the 403(b) world." (The Meridian Blog)

403(b) Advisor, Winter 2011 Edition
Articles include: University of South Alabama Hospital Gets a New 403(b) Plan; Organization Attributes High Participation Rate to Education and Personal Contact; and, Fixed Index Annuities Offer Safe-Money Alternative for Retired or Retiring Clients. (National Tax Sheltered Accounts Association / American Society of Pension Professional and Actuaries)

403(b) Advisor, Spring 2011 Edition
Articles include: Questions and Answers about the New Roth Rollovers in 403(b) Plans and Building Retirement from Floor to Ceiling in the Trend Spotting column. (National Tax Sheltered Accounts Association / American Society of Pension Professional and Actuaries)

403(b) Advisor, Summer 2011 Edition
Articles include Navigating the Regulatory Waters; Rush to Retirement: Layoffs, Pay Cuts, Benefit Reduction, Mass Exodus; Get The Most Out Of Social Security... While You Still Can; Is the 403(b) Plan Dying?; and Paying 'Reasonable Plan' Expenses. (American Society of Pension Professional and Actuaries )

[Opinion] DC Plans and the Recession Inequities
"I would make the case that the smartest thing Congress could do right now is to increase the DC limit, as least for an interim period, to allow balances to be rebuilt." (Robert J. Toth, Jr., Business of Benefits)

403(b) Plan Response to Current Economic and Regulatory Conditions (PDF)
"The majority of 403(b) plan sponsors have continued to make contributions to their plans during the last four years. Many plan sponsors that did suspend or reduce organization contributions arerestoring them to previous levels. Organizations seem to be restoring matching contributions faster than non-matching contributions." (Plan Sponsor Council of America (PSCA))

[Guidance Overview] Employee Benefit Plan Year End Action Items
"[This] information contains important action items plan administrators may need to process prior to year end. The items include amendments, notices and other compliance matters for tax-qualified retirement plans, 403(b) plans, nonqualified deferred compensation and welfare plans." (O?Connor Davies Munns & Dobbins LLP)

[Opinion] The 403(b) 8955 FAQ from the IRS
"Keeping it simple and sensible is never an easy task. As a matter of fact, it is extremely difficult to do, particularly when dealing with something as complex as 403(b) regulations. This is why the IRS's recent release of its 8955 FAQ's is so striking: in merely two FAQs, IRS and Treasury provided answers that not only make regulatory sense and further tax administration, but did it in a way which makes sense for 403(b) plan sponsors. And it surprisingly well co-ordinates with positions the DOL has taken." (Robert J. Toth, Jr., Business of Benefits)

[Guidance Overview] Form 8955-SSA Reporting and 403(b) Plans
"Commencing with the 2009 plan year, the world turned upside down for 403(b) plans ? a new set of regulations (first set of comprehensive regulations in 44 years), a written plan requirement, and a requirement to include schedules and the audit with the Form 5500 filing (for ERISA 403(b) plans only). As if those requirements were not enough, with the elimination of the limited exemption regarding the Form 5500, an ERISA 403(b) plan must now file a Form 8955-SSA." (SunGard Relius)

Relief for 403(b) Plan Compliance Failures
"In the course of an IRS teleconference on August 25, in which a number of the members of our practice group participated, the IRS confirmed that an update and expansion of EPCRS is expected in the 'near future' so as to extend all correction opportunities, including remediation of document failures, to 403(b) plan sponsors." (Fox Rothschild LLP)

[Guidance Overview] 2011 Plan Year: Year-End Compliance Reminders for Defined Contribution Plans Subject to ERISA (PDF)
"This information applies to qualified defined contribution plans and 403(b) plans that are subject to Title I of ERISA." (The Prudential Insurance Company of America)

[Guidance Overview] 2012 Regulatory Limits: Poster and Compliance Calendar
"[The poster] is a convenient way to remind you of important regulatory limits and dates for retirement plans. Note that there are increases in regulatory limits for 2012. [The calendar] lists recurring compliance and notice requirements for qualified defined contribution plans." (The Vanguard Group, Inc.)

ERISA Accounts, Part 2
"'ERISA Accounts,' or 'Fee Recapture Accounts,' or 'ERISA Budgets' are growing in popularity, and are becoming a frequent feature in the 401(k) and 403(b) space." (Robert J. Toth, Jr., Business of Benefits)

ERISA Advisory Council Asks DOL for 403(b) Plan Relief
"The Advisory Council's reasoning for this recommendation centers around several challenges currently facing sponsors of safe harbor Section 403(b) plans, including plan sponsors' inability to locate annuity contracts that were thought to no longer be part of the plan -- but under new guidance are still considered plan assets -- the council said, according to BNA. The council's final report will give details as to why a 'fresh start' approach would be appropriate." (PLANSPONSOR.COM)

[Official Guidance] headline
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