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.