- October 2007
Important changes are occurring regarding some of the investment companies receiving retirement contributions on a grandfathered basis. Due to the 403(b) regulations recently issued by the Internal Revenue Service, all employers offering a 403(b) will have increased responsibilities to ensure proper administration of the 403(b) plans. Establishing requirements for all UT Retirement Providers is an essential step to ensuring compliance with the new regulations.
As communicated in previous UT Retirement Program newsletters, the UT System issued a Request for Submission to over 100 companies receiving retirement contributions in a grandfathered status. The Request for Submission outlined essential requirements that must be met in order for the companies to continue receiving retirement contributions from current participants. Some of those essential requirements include:
Employees who are participating with a company that did not respond or did not meet the criteria will be sent a communication in mid-October. These employees will need to select any of the six currently authorized providers (AIG Valic, Fidelity Investment, ING, Lincoln Financial, MetLife, TIAA-CREF) no later than December 10, 2007 to receive their future retirement contributions. Only future contributions will need to be directed to a new provider; current investments may remain with the former company unless the employee chooses to transfer the investments to one of the six authorized providers.
For more information regarding the funds available in the UT Retirement Programs and services offered by the providers, visit www.utretirement.utsystem.edu.
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UT System Employee Benefits Website: www.utsystem.edu/benefits/
UT System Retirement Programs Website: www.utretirement.utsystem.edu
Your Local Benefits Office: www.utsystem.edu/benefits/contacts.asp#1