Business Services Industry
New Year, new 403 regulations
University Business, Oct, 2008 by Melissa Ezanik
A JANUARY 1 DEADLINE IS LOOMING for campus human resources offices--and if the deadline is missed the situation could turn into an employee retention and recruitment nightmare. The first new 403(b) regulations in 40 years will increase employers' role as sponsors of these tax-deferred retirement plans, with respect to investments, transfers, documentation, plan administration, and participant disclosures, according to Lincoln Financial Group.
Lincoln and other 403(b) providers are assisting higher ed institutions with resources such as regulation summaries, compliance checklists, and webcasts as they review and revise plan documents to comply with the new regulations. Although many IHEs are on the case and obtaining an extension is a possibility, "I think there are some that are going to be caught very unaware and unprepared," says Andy Brantley, LEO of CUPA-HR and a former higher ed HR director. "The magnitude of some of the plan changes might not be as clear to some institutions."
"Failure to comply could mean that the institution could be disqualified from offering tax-deferred retirement plans," Brantley warns. That's news no employer would want to break. If individual accounts lose their tax-advantaged status, employees could be hit hard come April 15. "Institutions need to carefully review the new 403(b) regulations, and get the help of legal counsel and financial service providers, so that they can move to January 1 with no issues," he adds.
CUPA-HR members can access resources from providers such as TIAA-CREE AIG Retirement, and ING through the online Knowledge Center, www.cupahr.org/knowledgecenter. Lincoln Financial's resources can be found under the Lincoln 403(b)e SURE Advantage link at www.lincolnfinancial.com.
Most Recent Reference Articles
- ARAB EUROPEAN RELATIONS - Dec 22 - Russia Denies Selling Missile System To Iran
- EGYPT - Dec 29 - Opposition Says Mubarak Blessed Israeli Attacks
- ARAB AFFAIRS - Dec 22 - Syria Will Eventually Move To Direct Talks With Israel
- ARAB AFFAIRS - Dec 30 - GCC Denounces Massacre
- ARAB ISRAELI RELATIONS - Israel Issues An Appeal To Palestinians In Gaza
Most Recent Reference Publications
Most Popular Reference Articles
- Credit card debt on college campuses: causes, consequences, and solutions
- The Greek chorus, Jimmy the Greek got it wrong but so did his critics - Jimmy Snyder and his views on pro sports and race
- How Tyler Perry rose from homelessness to a $5 million mansion
- 9 questions to ask your new lover: what you were afraid to ask, but always wanted to know
- Living by the word: light the candles


