|
April 21, 2008
Pioneer Investments
With the effective date of the new 403(b) regulations on the horizon, Pioneer is
facing a significant change due to the complexities of the regulations. After careful
review of the impact to their 403(b) participants they have concluded that effective:
· May 1, 2008 they will no longer establish 403(b) accounts for new clients.
· December 31, 2008 they will cease accepting 403(b) contributions for all clients.
Calvert Funds
Due to the significantly increased administrative complexity resulting from the new 403(b) regulations,
Calvert has decided to limit their role in the 403(b) marketplace to that of a provider of investments only.
In this capacity, they will continue to make available certain participant-level plan information, such as
participant account balances, to you and or your designated plan administrator upon request. They will not,
however, be entering into information sharing agreements with plan sponsors or third-party administrators.
Clarification on the requirement for Employers to have Vendor
Information Sharing Agreements
On December 17, 2007, the IRS published Revenue Procedure 2007-71 which gave
additional guidance on when an information sharing agreement was required for
purposes of permitting participant exchanges of their investments within an
employer’s 403(b) Plan. Under Section 6.4 “Contract and Custodial Account
Exchanges,” the model language states that if an employee transfers or exchanges a
403(b) contract to a vendor that has an active 403(b) payroll slot with his or her
current employer, the transaction is not considered an exchange or a transfer and no
information sharing agreement between the employer and the vendor is required.
Information sharing agreements for vendors outside of the plan must be in place by December 31, 2008.
IRS 403(b) Plan Document
Available through MEA Financial Services is a 403(b) plan document which your district may adopt that is in
compliance with IRS regulations. A sample of this document is available below and is also available on our Employers website.
For more information regarding our TPA services, contact:
Paul H. Gonzalez, MEA Financial Services Executive Director, 1-800-292-1950
Finding the cost of auto & home insurance taking a huge bite of your
monthly budget?
Let us try to help! Call for a free no-obligation rate quote from MEA Financial Services at 1-800-292-1950, or go on-line at www.meafs.com. We can assist your entire family. Get a MEA group rate today!
EMPLOYERS...Keep Current On The Latest News
Take advantage of the information and resources available to you. SIGN UP for our EMPLOYERS website
TODAY! Just click on our EMPLOYERS link.
|
