IPERS

[Guest Phil L]

We administer a 401(k) plan for a client that is a 501©(3) entity. This client has just informated us that they also just began participating in the IPERS plan (the Iowa Public Employees Retirement System I believe).

Does anyone know what kind of plan this is? I would guess either a 403(B) or a 457 plan, but really don't have any idea. I was told the employees are required to contribute a specified percentage of pre-tax pay and the employer is also required to contribute a specified percentage of pay for each employee. It sounds like it is a defined benefit plan (no account balance but benefits each month at retirement).

My main concern of course, is whether I have to coordinate the contributions and or benefits from the IPERS plan with the 401(k) plan.

Any help would be greatly appreciated.

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[Carol V. Calhoun]

Well, you might want to check out the IPERS Web site on this matter. From a brief check, IPERS appears to be a defined benefit plan intended to fall under 401(a), not a 403(B) or 457 plan. (The pretax contributions would presumably be mandatory contributions made tax-exempt under I.R.C. § 414(h)(2).) But I didn't do extensive research; you should probably check it out for yourself.

By the way, if you ever want to find any of the other state retirement systems, I keep a complete list of state retirement system Web sites at my Web site.

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Employee benefits legal resource site

[jlf]

Phil: I urge you to telephone the IPERS DIRECTLY FOR YOUR ANSWER.