PLANSPONSOR - March - April 2023 - 11

that really bring a second or third layer of
security, " he says.
To Compensate for Weakness
Besides educating participants, some
plans now have technologies working in
the background to alert the sponsor of an
attempted breach.
" Some recordkeepers have included
voice recognition technologies and
auto[mated] fraud detection, " notes
Michael Kreps, co-chair of the retirement
services and fiduciary group with Groom
Law Group. If someone contacts a call
center and the call is deemed suspicious,
ASK THE EXPERTS
Should We Keep Referring to
Our Plan by an Outdated Name?
QUESTION: I work in employee benefits for a health care entity, and I noticed that our
403(b) plan is named XYZ Hospital Tax Deferred Annuity Plan, even in the plan document.
Our plan hasn't even had annuities for several years-we converted to an allmutual-fund
platform a decade ago-and we also now have Roth 403(b) accounts in addition
to traditional tax-deferred accounts. Is there any reason that we should continue to
refer to our plan by a name that is so outdated and potentially confusing to participants?
ANSWER: No, and you are not the only institution that still refers to its 403(b) plan
as a " tax-deferred annuity (TDA) " or " tax-sheltered annuity (TSA) " plan, as these terms
have been around for decades, despite the fact that annuities are no longer the exclusive
funding vehicles for 403(b)s, and Roth accounts have been added to traditional, taxdeferred
accounts. The primary reason that a number of 403(b) plans have retained this
nomenclature is inertia: Some terms were in place for decades upon decades, and even
the IRS was slow to adapt to 403(b) terminology that was not focused on annuity contracts.
It should be noted, however, that if you wish to change the name of your plan, a
discretionary plan amendment will be required, and that amendment must be executed
by the end of the plan year in which you change the name of your plan. In addition,
if your plan is subject to the Employee Retirement Income Security Act, there are a
myriad reporting and disclosure documents that include the plan name, such as the
Form 5500, SPD/SMM, SAR and participant fee disclosure. All of these documents will
require updating to change the plan name.
Kimberly Boberg, Taylor Costanzo, Kelly Geloneck and David Levine, with Groom
Law Group, and Michael A. Webb, senior financial adviser at CAPTRUST, answer
readers' questions. This is general information, does not constitute legal advice and
cannot be used or substituted for legal or tax advice. Have a question for the Experts?
Email Amy.Resnick@issgovernance.com, with Ask the Experts as the subject.
the center will flag the call, and more
hurdles will be put in place, he says.
John Hancock's call centers geolocate
call origins and listen for background
noise, based on the knowledge that some
large fraud operations function as a
group. The company's mobile app also has
full biometric capabilities, which has led
to John Hancock suggesting that people
start with the app, as it requires a facial ID
or fingerprint ID.
" When protecting your house, it's not
just your front doors, it's your garage and
your windows, too, " Barry says.
-Elizabeth Harris
TIDBITS
Smart,
Not Smart
In a recent survey, 73%
of knowledge workers
ages 30 through 55
who have 5-plus
passwords rated their
current password
behaviors as safe, and
89% knew the risk
of reusing the same
password or simply
varying it. Yet ...
62%
use the same
password or
a variation of it
50%
never change
their password
after a breach
Source: Lab42 for LastPass,
" Psychology of Passwords 2022 "
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