September 23, 2008
Dear School District Employee:
Re: Important Information Regarding your 403(b) Plan through the School District
The IRS has recently published regulations regarding 403(b) Plans. These new regulations shift the responsibility of tracking 403(b) activity from the individual (you) and your investment provider to your employer (the District). The District has contracted Educators Benefit Consultants (EBC) to provide 403(b)/457(b) administration and compliance services. EBC is a third party administrator which works exclusively with School Districts.
What does this mean to you!
The new regulations require all investment providers to agree to share information concerning 403(b) transactions with the employer sponsoring the 403(b) Plan. EBC is currently working with investment providers to ensure that they are willing and able to comply with the new regulations. Investment providers that comply with the new regulations and want to continue in the 403(b) business will be required to sign EBC’s “Universal Vendor Agreement” (UVA). These investment providers will be part of the District’s “approved vendor list”. Any investment provider that does not sign the UVA, on or before December 31, 2008, will no longer be offered as a 403(b) option in the School District, beginning January 1, 2009.
Below is the list of the investment providers that the District currently sends contributions to. Please note whether or not your investment provider has signed EBC’s UVA.
If your investment provider has signed the UVA, your provider is compliant, and no further action is required by you.
If your investment provider has not signed the UVA, it is possible that you might have to complete a new “Salary Reduction Agreement” form and redirect your 403(b) contributions to an investment provider that has signed the UVA. Remember, investment providers have until December 31st to sign the UVA. EBC will continue to update the District’s approved vendor list as UVAs are signed and submitted.
We will provide further follow up as investment providers return signed UVAs.
Please call EBC at 763-552-6053, if you have questions about your investment provider’s status.