John Feldt ERPA CPC QPA Posted March 30, 2017 Share Posted March 30, 2017 A county government has dual status. Their "403(b)" was in place prior to ERISA. They provide matching contributions, but claim the 403(b) plan is a non-ERISA plan. Is there a grandfather rule that would allow a 403(b) to be non-ERISA even if employer contributions occur? Would it have to be established before ERISA was enacted? Link to comment Share on other sites More sharing options...
QDROphile Posted March 30, 2017 Share Posted March 30, 2017 A government plan is not subject to ERISA. No comment on whether or not the county can maintain a 403(b) plan. Generally governments cannot, except for education institutions. Perhaps there is a historical reason that allows the plan. Link to comment Share on other sites More sharing options...
John Feldt ERPA CPC QPA Posted March 30, 2017 Author Share Posted March 30, 2017 Okay, thanks. It is a county hospital. Link to comment Share on other sites More sharing options...
PensionPro Posted March 30, 2017 Share Posted March 30, 2017 plans sponsored by agencies, schools or instrumentalities of state, county or municipality are exempt from erisa. these include hospitals, libraries, museums, etc. PensionPro, CPC, TGPC Link to comment Share on other sites More sharing options...
John Feldt ERPA CPC QPA Posted March 30, 2017 Author Share Posted March 30, 2017 Okay, even though their "status", for purposes of maintaining the 403(b) plan only, is a that of a 501(c)(3) entity. Link to comment Share on other sites More sharing options...
PensionPro Posted March 30, 2017 Share Posted March 30, 2017 Yes, they are public institutions that are 403(b) eligible employers due to their 501(c)(3) status. They have to meet certain requirements to enjoy this dual status. They must not be an integral part of the government, and must not have significant enforcement, regulatory authority. PensionPro, CPC, TGPC Link to comment Share on other sites More sharing options...
Carol V. Calhoun Posted March 31, 2017 Share Posted March 31, 2017 Rev. Rul. 69-545, 1969-2 C.B. 117, is the ruling that permits a municipal hospital to have 501(c)(3) status. If it does, it can have a 403(b) plan. However, that doesn't mean it loses its governmental status. And as a governmental plan, it is not subject to ERISA. Employee benefits legal resource site The opinions of my postings are my own and do not necessarily represent my law firm's position, strategies, or opinions. The contents of my postings are offered for informational purposes only and should not be construed as legal advice. A visit to this board or an exchange of information through this board does not create an attorney-client relationship. You should consult directly with an attorney for individual advice regarding your particular situation. I am not your lawyer under any circumstances. Link to comment Share on other sites More sharing options...
John Feldt ERPA CPC QPA Posted March 31, 2017 Author Share Posted March 31, 2017 Thanks Carol. 1969 ruling! So they can have a government 457(b) plan covering everyone (or anyone) and a non-ERISA 403(b) plan with employer contributions. Link to comment Share on other sites More sharing options...
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