“We are a private tax-exempt hospital that sponsors a 457(b) plan for select management or highly compensated employees. Though all participants have been informed of the credit risk in the event of insolvency and are comfortable with that, one employee recently posed a question that was interesting."
Ascension has agreed to pay of the first $29.5 million of benefits that are distributable to settlement class members in the event trust assets attributable to the plan become insufficient to pay such benefits.
“I work for a plan sponsor where payroll deduction and outside collateral cannot be used for loans. We have a participant who defaulted on a loan, but who later paid off the loan in its entirety. Do the Internal Revenue Service (IRS) regulations allow for re-borrowing in this situation?”
“I am fairly new to the employee benefits field, but was shocked to find that our employer, a private university, delays its 403(b) retirement plan Form 5500 filing until the last possible moment (October 15, since our calendar year is a plan year).
“A Section 414(e)(e) religious organization, that does not meet the definition of church or qualified church-controlled organization QCCO under Section 3121(w)(3)(A) and (B), and elects not to be covered by the Employee Retirement Income Security Act (ERISA), sponsors a 403(b) plan with employer matching contributions.
“What is the consequence of a plan that, though written to permit only 403(b) eligible investments (403(b)(1) fixed/variable annuities and /or 403(b)(7) custodial accounts (mutual funds)), actually offers investments that do not qualify as 403(b) investments in plan operation? Is this a defect that can be self-corrected?”
Individual annuity contracts and a large plan investment lineup are targets in the Brown University lawsuit, just as they are with most other lawsuits against higher education institutions’ 403(b) plan fiduciaries.