Public Access TV Station Rejects 403(b) in Favor of
SIMPLE IRA
July 29, 2009 (PLANSPONSOR.com) - The board of
directors for PEGASYS, a public-access television station in
Enid, Oklahoma, has approved a change in employee retirement
plans.
Employees will now participate in a SIMPLE IRA plan,
rather than a 403(b) plan. According to the Enid News &
Eagle, Wendy Quarles, executive director of PEGASYS, said
the change was recommended by an accountant, who told the
board the 403(b) plan is no longer suitable for nonprofits.
She added that the change makes the plan better adaptable
to a nonprofit organization, the newspaper said.
The news report did not elaborate on the particular
reasons the accountant believed the 403(b) plan was no
longer suitable.
The change limits the contribution by PEGASYS to 3% of
each employee's gross monthly salary, versus the 6.5%
contribution under the prior 403(b) plan. According to the
news report, to compensate for the change in contribution
rate, PEGASYS is increasing salaries of employees currently
participating in the SIMPLE IRA by 3.5%.
Employees may contribute up to $10,000 annually to
the plan.
Rebecca Moore
editors@plansponsor.com