Plan Analysis Have Non-ERISA Plans Improved? F rom an administrative prospective, a non-Employee Retirement Income Security Act (ERISA) 403(b) plan does not have to provide ERISA-mandated notices. It is also exempt from the filing and auditing requirements, as well as the fiduciary demands, of an ERISA plan. For non-ERISA plans-in the K-12 school market, especially-the traditional model was such that plan participants had individual relationships with sellers of insurance products. Much of the workers' retirement savings was invested in individual annuity contracts-resulting in the plans having a multitude of vendors. School systems, as well as other employers, found this administratively trying and came to realize it was also difficult for their employees. The 403(b) regulations passed by the IRS in 2007 required more plan sponsor involvement. Many 403(b) plan sponsors decided that oversight would be easier without multiple providers and individual contracts. There was a move toward provider consolidation. Non-ERISA 403(b) plans are evolving toward improved plan governance- similar to 401(k) plans. Findings from the 2019 PLANSPONSOR Defined Contribution (DC) Survey indicate a trend in employer dedication to best practices in plan administration and a commitment to compliance with the IRS rules. Most significantly, this year's survey found that 27% more non-ERISA plans have added an investment committee since 2017's survey. The use of investment policy statements (IPSs) and financial advisers in non-ERISA plans also grew. K-12 school districts' enhanced plan governance was significant in their adding an IPS-a 21% rise since 2017. Additionally, 2% more plans report using a financial adviser. -Judy Faust Hartnett 92.3% 64.8% 72.4% 69.2% 65.5% 2017 2018 2019 Organizations With a Written Investment Policy Statement For the DC Plan n All non-ERISA n K-12 88.4% 66.7% 72.5% 67.6% 64.8% 94.1% Organizations With an Investment Committee for Their DC Plan(s) n All non-ERISA n K-12 87.9% 2017 2018 2019 Organizations That Employ the Services of a Financial Adviser n All non-ERISA n K-12 77.2% 58.2% 66.0% 72.5% 74.1% 78.9% 2017 2018 Source: 2019 PLANSPONSOR Defined Contribution Survey 2019 10 PLANSPONSOR.com October - November 2019http://www.plansponsordigital.com/plansponsor/october-november_2019/TrackLink.action?pageName=10&exitLink=http%3A%2F%2FPLANSPONSOR.com