PLANSPONSOR - June/July 2019 - 46
RUNNING THE FUND
Going
With the
Plan
Sponsors adapt to the
modern 403(b)
I
t has been more than a decade since
the IRS finalized regulations for
403(b) plans, and the marketplace has
changed enormously in response.
The reason the agency took action
was to compel 403(b) plan sponsors to
recognize and accept the responsibility to
maintain their plan, says Eric Levy, executive
vice president at AIG Retirement
Services, in Houston.
" Previously, it was a broad, open
market where, in many cases, there were
multiple vendors serving individual plan
participants and little sponsor involvement, "
Levy explains. " What the IRS
recognized is that sponsors have the
responsibility to make sure their plans are
maintained for the benefit of participants.
This drastically changed the way sponsors
looked at what they were providing. "
The regulations refocused the
industry on plan governance, observes Tim
Walsh, senior managing director of institutional
investment products at TIAA in
Boston. " They galvanized the not-for-profit
market to realize that the rules of ERISA
[Employee Retirement Income Security
Act] applied to 403(b) plans, " he says.
The IRS had found multiple violations
of regulations and ERISA requirements.
Its final regulations, issued on July 23,
2007, and effective in 2009, required plan
sponsors to ensure such violations were
fixed and would not continue to happen.
For example, it called for compliance with
contribution and participant loan limits,
and with hardship withdrawal rules. This
required plan sponsors whose plans had
multiple providers to get information from
all that they used-legacy and current.
Further, the agency mandated information
sharing between providers in all
403(b) plans, and, whether sponsors were
governed by ERISA or not, they had to
have a written plan in place by January
1 of this year, with exceptions for some
church plans.
" After those changes and new
responsibilities were added, we
saw a narrowing of the selection of
providers on the shelf, versus before the
46 PLANSPONSOR.com June - July 2019 Art by Hye Jin Chung
regulations were finalized, " Levy notes.
It is impossible to compare the
number of providers in 2007 with the
number today. Annuities are common in
403(b)s, and 12 years ago, any company-
recordkeeper or otherwise-from which a
participant purchased an annuity would
have been considered the provider for it.
Form 5500 Filings
Besides adhering to statutory limits and
hardship withdrawal rules, ERISA 403(b)
sponsors had to begin filing a consolidated
Form 5500-for many, the data aggregation
http://www.plansponsordigital.com/plansponsor/june-july_2019/TrackLink.action?pageName=46&exitLink=http%3A%2F%2FPLANSPONSOR.com
PLANSPONSOR - June/July 2019
Table of Contents for the Digital Edition of PLANSPONSOR - June/July 2019
Fee Variations
Consider This
2019 PLANSPONSOR Recordkeeping Survey
A Balancing Act
Equity Factor Investing
Going With the Plan
NQDC Investment Menus
PLANSPONSOR - June/July 2019 - Cover1
PLANSPONSOR - June/July 2019 - Cover2
PLANSPONSOR - June/July 2019 - 1
PLANSPONSOR - June/July 2019 - 2
PLANSPONSOR - June/July 2019 - 3
PLANSPONSOR - June/July 2019 - 4
PLANSPONSOR - June/July 2019 - 5
PLANSPONSOR - June/July 2019 - 6
PLANSPONSOR - June/July 2019 - 7
PLANSPONSOR - June/July 2019 - 8
PLANSPONSOR - June/July 2019 - 9
PLANSPONSOR - June/July 2019 - 10
PLANSPONSOR - June/July 2019 - 11
PLANSPONSOR - June/July 2019 - 12
PLANSPONSOR - June/July 2019 - 13
PLANSPONSOR - June/July 2019 - 14
PLANSPONSOR - June/July 2019 - 15
PLANSPONSOR - June/July 2019 - Fee Variations
PLANSPONSOR - June/July 2019 - 17
PLANSPONSOR - June/July 2019 - 18
PLANSPONSOR - June/July 2019 - 19
PLANSPONSOR - June/July 2019 - Consider This
PLANSPONSOR - June/July 2019 - 21
PLANSPONSOR - June/July 2019 - 22
PLANSPONSOR - June/July 2019 - 23
PLANSPONSOR - June/July 2019 - 2019 PLANSPONSOR Recordkeeping Survey
PLANSPONSOR - June/July 2019 - 25
PLANSPONSOR - June/July 2019 - 26
PLANSPONSOR - June/July 2019 - 27
PLANSPONSOR - June/July 2019 - 28
PLANSPONSOR - June/July 2019 - 29
PLANSPONSOR - June/July 2019 - 30
PLANSPONSOR - June/July 2019 - 31
PLANSPONSOR - June/July 2019 - 32
PLANSPONSOR - June/July 2019 - 33
PLANSPONSOR - June/July 2019 - 34
PLANSPONSOR - June/July 2019 - 35
PLANSPONSOR - June/July 2019 - 36
PLANSPONSOR - June/July 2019 - 37
PLANSPONSOR - June/July 2019 - 38
PLANSPONSOR - June/July 2019 - 39
PLANSPONSOR - June/July 2019 - 40
PLANSPONSOR - June/July 2019 - 41
PLANSPONSOR - June/July 2019 - A Balancing Act
PLANSPONSOR - June/July 2019 - 43
PLANSPONSOR - June/July 2019 - Equity Factor Investing
PLANSPONSOR - June/July 2019 - 45
PLANSPONSOR - June/July 2019 - Going With the Plan
PLANSPONSOR - June/July 2019 - 47
PLANSPONSOR - June/July 2019 - NQDC Investment Menus
PLANSPONSOR - June/July 2019 - 49
PLANSPONSOR - June/July 2019 - 50
PLANSPONSOR - June/July 2019 - 51
PLANSPONSOR - June/July 2019 - 52
PLANSPONSOR - June/July 2019 - Cover3
PLANSPONSOR - June/July 2019 - Cover4
https://www.plansponsordigital.com/plansponsor/may_june_2024
https://www.plansponsordigital.com/plansponsor/march_april_2024
https://www.plansponsordigital.com/plansponsor/january_february_2024
https://www.plansponsordigital.com/plansponsor/november_december_2023
https://www.plansponsordigital.com/plansponsor/september_october_2023
https://www.plansponsordigital.com/plansponsor/july_august_2023
https://www.plansponsordigital.com/plansponsor/may_june_2023
https://www.plansponsordigital.com/plansponsor/march_april_2023
https://www.plansponsordigital.com/plansponsor/december_2022_february_2023
https://www.plansponsordigital.com/plansponsor/october_november_2022
https://www.plansponsordigital.com/plansponsor/august_september_2022
https://www.plansponsordigital.com/plansponsor/june_july_2022
https://www.plansponsordigital.com/plansponsor/excellenceawards_2022
https://www.plansponsordigital.com/plansponsor/april_may_2022
https://www.plansponsordigital.com/plansponsor/february_march_2022
https://www.plansponsordigital.com/plansponsor/december_2021_january_2022
https://www.plansponsordigital.com/plansponsor/october_november_2021
https://www.plansponsordigital.com/plansponsor/august_september_2021
https://www.plansponsordigital.com/plansponsor/june_july_2021
https://www.plansponsordigital.com/plansponsor/april-may_2021
https://www.plansponsordigital.com/plansponsor/february-march_2021
https://www.plansponsordigital.com/plansponsor/december-january_2021
https://www.plansponsordigital.com/plansponsor/october-november_2020
https://www.plansponsordigital.com/plansponsor/august-september_2020
https://www.plansponsordigital.com/plansponsor/june-july_2020
https://www.plansponsordigital.com/plansponsor/april-may_2020
https://www.plansponsordigital.com/plansponsor/february-march_2020
https://www.plansponsordigital.com/plansponsor/december-january_2020
https://www.plansponsordigital.com/plansponsor/october-november_2019
https://www.plansponsordigital.com/plansponsor/august-september_2019
https://www.plansponsordigital.com/plansponsor/june-july_2019
https://www.plansponsordigital.com/plansponsor/april-may_2019
https://www.plansponsordigital.com/plansponsor/february-march_2019
https://www.plansponsordigital.com/plansponsor/december_2018-january_2019
https://www.plansponsordigital.com/plansponsor/october-november_2018
https://www.plansponsordigital.com/plansponsor/august-september_2018
https://www.plansponsordigital.com/plansponsor/june-july_2018
https://www.plansponsordigital.com/plansponsor/april-may_2018
https://www.plansponsordigital.com/plansponsor/february-march_2018
https://www.plansponsordigital.com/plansponsor/december_2017-january_2018
https://www.plansponsordigital.com/plansponsor/november_december_2017
https://www.plansponsordigital.com/plansponsor/october_2017
https://www.plansponsordigital.com/plansponsor/september_2017
https://www.nxtbookmedia.com