The Proper Timing of 457(b) Deferral Elections

The Proper Timing of 457(b) Deferral Elections

Although many people think that governmental section 457(b) plans and private sector 401(k) plans are the same – because they both allow pre-tax deferrals of similar amounts of income – they are not the same. Due to their differing origins, their rules and...

School District 403(b) Plans and Participant-Directed Investments

School District 403(b) Plans and Participant-Directed Investments

This post addresses the availability of participant-directed investments in practically all California public school district 403(b)s and why the special rules mentioned in California Government Code section 53213.5 must apply if the 403(b) plan is employer-sponsored....

School District 403(b) Plans and Recordkeeper Selection

School District 403(b) Plans and Recordkeeper Selection

Continuing our commentary on California public school and charter school 403(b)s, we shift focus from the ability of a 403(b) employer to limit investment selection to a discussion of the California law on the selection by public school districts and charter schools...

School District 403(b) Plans and Investment Selection

School District 403(b) Plans and Investment Selection

When it comes to 403(b) plans of California school districts or charter schools, there is confusion about the ability of the sponsoring district or charter school to limit the participant’s ability to select a particular insurance provider for their tax-sheltered...

Is Your 457(b) or 401(a) Plan Fee Allocation Fair and Reasonable?

Is Your 457(b) or 401(a) Plan Fee Allocation Fair and Reasonable?

Investment fiduciaries and plan administrators of California public sector 457(b) and 401(a) plans are required by law to act as “prudent experts” for the sole and exclusive purpose of providing benefits and defraying “reasonable expenses” of administering the plan....

Is Your Social Security Replacement Plan Up to Snuff?

Is Your Social Security Replacement Plan Up to Snuff?

As we previously explained, most public agencies are not automatically subject to Social Security. They have a choice between voluntarily participating in Social Security pursuant to a section 218 agreement, or they can exempt some or all of their payroll by providing...

Problems with Co-Provider 457(b) Plan Arrangements

Problems with Co-Provider 457(b) Plan Arrangements

There is a novel recordkeeping and plan investment arrangement for governmental 457(b) plans that could create a number of problems for the plan’s sponsor, fiduciaries and participants. There may be a significant number of these arrangements throughout California....

Understanding the Fees Paid by Your Governmental Retirement Plan

Understanding the Fees Paid by Your Governmental Retirement Plan

There are several fundamental principles and concepts that governmental plan sponsors and fiduciaries need to bear in mind as they select and monitor their plan providers and the fees that these providers charge. Practically all governmental plan providers use assets...

What Plan Documents Should You Be Keeping?

What Plan Documents Should You Be Keeping?

Despite the insane popularity of Marie Kondo and her tidying methodology, when it comes to your agency's retirement (and welfare) plan documents: more is better. But, not just more of the same thing — such as unexecuted plan documents. Your plan documents tell a story...

Chapter 32: How “Not” To Transition To A New Record-Keeper

Chapter 32: How “Not” To Transition To A New Record-Keeper

Time and time again plan sponsors seriously disadvantage themselves and their plan participants by announcing the migration of their plan from one record-keeper to a new record-keeper before all the conditions for a smooth transition have been fulfilled. ...

Chapter 24: 457(b) Plan Fees And Revenue Sharing

Chapter 24: 457(b) Plan Fees And Revenue Sharing

Many public agencies pay little attention to their 457(b) plans because the agencies are not "paying" for them out of their own budgets. See Have You Checked Your Retirement Plan Fees Lately? Plan fiduciaries are legally required, at least in California, to make sure...