Too Many Documents

[sloble@crowleyfleck.com]

Montana School District has draft 403(b) plan document ready to adopt this summer - based on IRS model.

Vendors are insisting that School District adopt the vendors' 403(b) plan document (not just info-sharing/services agreement and annuity contracts). This could mean 4-5 different plan documents;

Any thoughts or experiences? Has anyone been "forced" onto this situation?

MT law does not require acceptance of particular number of vendors.

[Guest GLBath]

Montana School District has draft 403(b) plan document ready to adopt this summer - based on IRS model.

Vendors are insisting that School District adopt the vendors' 403(b) plan document (not just info-sharing/services agreement and annuity contracts). This could mean 4-5 different plan documents;

Any thoughts or experiences? Has anyone been "forced" onto this situation?

MT law does not require acceptance of particular number of vendors.

[Guest GLBath]

This kind of insistence would explain why some school districts and universities are chooseing to eliminate some of the 403(b) plans currently available to their employees. It would seem that the employer should be able to choose one plan document for simplicity. I would be interested in knowing how this is resolved. Our university system is down to only a couple 403(b) plans and a 457 plan.

[Guest mjb]

Montana School District has draft 403(b) plan document ready to adopt this summer - based on IRS model.

Vendors are insisting that School District adopt the vendors' 403(b) plan document (not just info-sharing/services agreement and annuity contracts). This could mean 4-5 different plan documents;

Any thoughts or experiences? Has anyone been "forced" onto this situation?

MT law does not require acceptance of particular number of vendors.

This is why employers hire TPAs who will administer the plan and impose their own document/procedures on the vendors b/c the TPAs will be the plan adinistrator under the IRS regs. Signing different documents doesnt make any sense since the SD will be responsible for adminstering plan of each vendor (and being responsible for making sure that the contribution limits are not exceeded) and will have to administer inconsistent provisions of each vendor's plan. Since the cost of plan adminsiatration by the TPA will probably be passed on to plan participants it is likely that the 403b plan will be terminated due to lack of interest and complexity of adminstration.

[Guest GLBath]

Do you receive Plan Sponsor's newsletter (b)Lines? It's focused on 403(b) plans and sent electronically and there are always timely articles - one today is about a VA school deciding to go with just one 403(b) vendor. If you want to subscribe - use this email address for (b) lines from PLANSPONSOR

PlanSponsor@newsmail.plansponsor.com

[TLGeer]

I don't quite understand this topic. Is the topic why a single SD would have multiple plans? Is it why a single SD would have multiple documents for a single plan (because that's easy, the answer being never)? Is it why vendors want to use their own documents?