PLANSPONSOR - December/January 2020 - 13
403(b) Form
Fixes, Going
Forward
IN October, the IRS issued Revenue
Procedure 2019-39, setting forth a
system of recurring remedial amendment
periods for correcting form defects
in 403(b) individually designed plans and
403(b) preapproved plans that occur after
the agency's initial remedial amendment
period ends, March 31, 2020.
One important provision is that, as of
this January 1, if a plan makes a " discretionary "
change, it must adopt an amendment
specifying that modification by the
end of the pertinent plan year.
" As we've gone through plans, we're
finding that sponsors have made changes
and not put them in the document, " says
Robert J. Toth Jr., of the Law Office of
Robert J. Toth Jr. " Let's say the sponsor
decided to allow loans but hasn't amended
the plan to reflect that; as long as the plan
is amended by March 31, 2020, there's no
problem. But, going forward, if the sponsor
makes such a change, the plan document
had better be amended by the end of
the year in which the change was made
or there will be an operational failure. "
Toth notes that, for required or interim
amendments, sponsors can rely on the
entity that created the document and had it
approved, to make updates. Discretionary
amendments take more time and effort.
According to Michael Webb, vice president,
retirement plan services at Cammack
Retirement Group, most 403(b) plan sponsors
will now choose preapproved master
or volume submitter documents, because
they are approved by the IRS.
An advantage of a preapproved document,
according to Webb, is that many
discretionary amendments can be made
easily-they simply require a change to
checkboxes in the adoption agreement.
-Rebecca Moore
TIDBITS
Most Public-Sector Plans
Don't Auto-Enroll
n 10 states allow automatic enrollment for public-sector plans.
n 16 states allow auto-enrollment for some public-sector plans.
n 24 states prohibit auto-enrollment for public-sector plans.
Source: National Association of Government Defined Contribution Administrators, " Perspectives
in Practice: A Benchmarking Initiative for Public Sector Defined Contribution Plans "
'Over-Stated Retirement Crisis'
Many Americans say employees were better off when defined benefit
(DB) plans were the dominant retirement savings vehicle. In 1950, 25%
of private-sector workforces had a DB plan. As of March 2018, 26% of
civilian workers had access to a DB plan.
Percentage of private-sector workforces with a DB plan
50%
38%
1950
25%
1960
1980
2000
2018
26%
Source: Empower Institute, " The Over-Stated Retirement Crisis: An ever-improving retirement
system is helping Americans be more prepared for retirement "
PLANSPONSOR.COM December 2019 - January 2020 13
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PLANSPONSOR - December/January 2020
Table of Contents for the Digital Edition of PLANSPONSOR - December/January 2020
The Savings Hierarchy
2019 PLANSPONSOR Best in Class DC Providers
On Their Own Terms
HSA Investment Options
Steady as It Goes
The Employer Component
PLANSPONSOR - December/January 2020 - Cover1
PLANSPONSOR - December/January 2020 - Cover2
PLANSPONSOR - December/January 2020 - 1
PLANSPONSOR - December/January 2020 - 2
PLANSPONSOR - December/January 2020 - 3
PLANSPONSOR - December/January 2020 - 4
PLANSPONSOR - December/January 2020 - 5
PLANSPONSOR - December/January 2020 - 6
PLANSPONSOR - December/January 2020 - 7
PLANSPONSOR - December/January 2020 - 8
PLANSPONSOR - December/January 2020 - 9
PLANSPONSOR - December/January 2020 - 10
PLANSPONSOR - December/January 2020 - 11
PLANSPONSOR - December/January 2020 - 12
PLANSPONSOR - December/January 2020 - 13
PLANSPONSOR - December/January 2020 - The Savings Hierarchy
PLANSPONSOR - December/January 2020 - 15
PLANSPONSOR - December/January 2020 - 16
PLANSPONSOR - December/January 2020 - 17
PLANSPONSOR - December/January 2020 - 2019 PLANSPONSOR Best in Class DC Providers
PLANSPONSOR - December/January 2020 - 19
PLANSPONSOR - December/January 2020 - 20
PLANSPONSOR - December/January 2020 - 21
PLANSPONSOR - December/January 2020 - 22
PLANSPONSOR - December/January 2020 - 23
PLANSPONSOR - December/January 2020 - 24
PLANSPONSOR - December/January 2020 - 25
PLANSPONSOR - December/January 2020 - 26
PLANSPONSOR - December/January 2020 - 27
PLANSPONSOR - December/January 2020 - 28
PLANSPONSOR - December/January 2020 - 29
PLANSPONSOR - December/January 2020 - 30
PLANSPONSOR - December/January 2020 - 31
PLANSPONSOR - December/January 2020 - On Their Own Terms
PLANSPONSOR - December/January 2020 - 33
PLANSPONSOR - December/January 2020 - 34
PLANSPONSOR - December/January 2020 - 35
PLANSPONSOR - December/January 2020 - 36
PLANSPONSOR - December/January 2020 - 37
PLANSPONSOR - December/January 2020 - HSA Investment Options
PLANSPONSOR - December/January 2020 - 39
PLANSPONSOR - December/January 2020 - Steady as It Goes
PLANSPONSOR - December/January 2020 - 41
PLANSPONSOR - December/January 2020 - The Employer Component
PLANSPONSOR - December/January 2020 - 43
PLANSPONSOR - December/January 2020 - 44
PLANSPONSOR - December/January 2020 - 45
PLANSPONSOR - December/January 2020 - 46
PLANSPONSOR - December/January 2020 - 47
PLANSPONSOR - December/January 2020 - 48
PLANSPONSOR - December/January 2020 - Cover3
PLANSPONSOR - December/January 2020 - Cover4
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