Can employer maintain both ERISA 403b and Non-ERISA 403b plans

[Guest PIA]

Employer wishes to start an ERISA 403b plan. They currently sponsor a Non-ERISA 403b plan, but due to surrender charges on current policies, wonders if he can maintain both. Would one 5500 reflecting both plans suffice?

[Guest mjb]

Er can maintain ERISA plan for employer contributions and separate non erisa plan for salary reduction amounts. Need to have appropriate langauge in SPD for ERISA plan that explains what benefits are not covered under ERISA. Non ERISA plan is not subject to 5500 reporting.