“What are the combined limits for someone whose employer has both a nonprofit and affiliated for-profit organization, where the individual works for both and participates in retirement plans sponsored by both organizations?”
In a SURVEY SAYS marking the 40th anniversary of the Employee Retirement Income Security Act (ERISA), the change to ERISA during the past 40 years that received the greatest percentage of votes for being the one that most helped participant retirement savings outcomes was the establishment of Section 401(k) qualified deferred compensation plans.
Michael Barry, president of October Three (O3) Plan Advisory Services LLC, points out that, while the candidates for the midterm elections are not spouting their views on retirement policy as part of their platforms, the results of the elections may indeed affect retirement policy.
“One of our employees, who consistently defers the maximum to both our 403(b) retirement plan and 457(b) deferred compensation plans, wants to contribute additional funds to the plan and came to me with a proposal.
“We are a church 403(b) plan sponsor, whose headquarters is in a state that requires consent of the employee prior to making any deductions from salary. Could we still add an auto-enrollment provision to our plan?”
There is a modern, professionally managed and outsourced alternative that, while not completely relieving plan sponsors of their fiduciary responsibilities in the eyes of regulators, removes pressure on company resources.