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Important 403(b)/457(b) News

Coronavirus, Aid, Relief, and Economic Security (CARES Act) (3/27/2020)


On March 27th, the CARES act was enacted to provide relief in light of the COVID-19 crisis. The CAREs act has key provisions address distributions, loans and RMDs under retirement plans. CCC is working with our vendor community and plan sponsors on implementation of these provisions and will have additional updates shortly.

The American Retirement Association (ARA) has provided an excellent FAQ, available here.

Reminder: Deadline to Adopt a Pre-Approved 403(b) Plan Document extended to 6/30/2020 (updated 3/30/2020)


The IRS has extended the remedial amendment period to adopt a Pre-Approved 403(b) Plan Document from 3/31/2020 to 6/30/2020.

The majority of CCC clients have already adopted the 403(b) Pre-Approved Plan Document to satisfy the original 3/31/2020 deadline. If you are uncertain if your organization has satisfied this Pre-Approved Plan Document requirement, or if you have questions in regard to this requirement, please contact CCC immediately.

Remittance Instruction Update for Penselect (formerly Foresters) Payroll Slots (1/20/2020)


Forester's payroll slots are converting to Penselect. This is a result of the sale of Forester's to Delaware Funds, who has contracted with PenServ to provide recordkeeping services via their "Penselect" platform.

There are new remittance instructions for the "Penselect/ Foresters Financial" payroll slots effective 1/22/2020:

CHECK PROCESSING (For USPS Delivery)

  • Make checks payable to: PenServ Plan Services, Inc.
  • Memo Line or Reference: (Must be Included) Employer Plan Name and Plan Number*
  • Mail to : P.O. Box 3109 West Columbia, SC 29171

For assistance with Check processing please contact PenServ: team60@penserv.com or Phone (803) 354-5003

ACH DEPOSITS

  • Bank Name: United Community Bank
  • Bank Address: 125 Hwy 515 East Blairsville, GA 30512
  • Routing/Transit Number: 061112843
  • Beneficiary Account Number: 2405115466
  • Beneficiary Name Beneficiary Information: PenServ Plan Services, Inc. For further credit to (Employer Plan Name), (Plan Number*)

For assistance with ACH processing please contact PenServ: team60@penserv.com or Phone (803) 354-5003

ONLINE REMITTANCE

It will be necessary to set up online access via PenServ if you are a current user of the Foresters' online system or if you wish to transition to online remittance. Please contact PenServe directly to set up access:

  • Email: penselect@penserv.com
  • Phone: (803) 354-5084

*Plan numbers can be found on the employer's 403(b) Vendors Page. If you need assistance, please contact CCC.

General information about the Foresters transition to Penselect, please visit PenServ's Transition Status Page.

AXA Equitable Life is now Equitable (1/14/2020)


AXA Equitable Life has rebranded to Equitable. There are no changes to remitting or online access as a result of this change, to view a copy of the announcement regarding this change click here.

The Secure Act enacted 12/20/2019


The passage of The Secure Act is bringing many changes that impact 401(k) plans, but there are a few changes that will effect 403(b) and 457(b) plans. These changes will ultimately require plan amendments. We are waiting for IRS guidance regarding the implementation of the changes, which will include:

  • The Required Minimum Distribution Age is changing from 70.5 to 72
  • 457(b) Plans are to have an Age 59.5 In Service Withdrawal option available
  • Penalty-free distributions for individuals with a birth or adoption
  • Changes in certain Death Benefit distributions to non-Spouse beneficiaries

If you have any questions, please contact CCC.

Contributions Limits Increase in 2020 (released 11/6/2019)

The IRS has released the new 403(b) and 457(b) limits for 2020:

  • The elective deferral limit has increased to $19,500
  • The Age 50 Catch-up amount has increased to $6,500, allowing those age 50 or over by 12/31/2020 to contribute up to $26,000.

These 2020 limits represent a $500 increase in both the elective deferral limit and the Age 50 catch-up amounts over the 2019's limits.

CCC will be sending updated Universal Availability notices with the 2020 to all our client plans in the next couple of days

Regulatory Update: Adoption Deadline 3/31/2020 for the IRS Pre-Approved 403(b) Plan Documents


The 3/31/2020 deadline for adopting a Pre-Approved 403(b) Plan Document is fast approaching, for most employers this is a restatement of the current plan utilizing the new plan document that has been updated for regulatory changes and was submitted to the IRS for approval. For most employers the updated plan document will not change the day-to-day operation of the plan unless changes are made to the plan's optional features. CCC clients received Pre-Approved Plan Adoption Kits that included the Adoption Agreement, the Plan Document, and the Administrative Appendix, along with an Executive Summary that explains each document and the purpose of the Pre-Approved Plans. Please contact CCC if you have any questions or concerns regarding adopting the Pre-Approved Plan Document.

Regulatory Update: Changes to the 403(b) Hardship Rules effective 1/1/2019


The Bipartisan Budget Act of 2018 required Treasure to updated hardship rules for 403(b) plans after 12/31/2018, these updates included:

  • Removing the requirement to take a loan before a hardship
  • Removing the requirement for a 6 month deferral suspension following a hardship

CCC has updated our 403(b) Hardship Form effective 1/1/2019 to comply with these changes and CCC employers will no longer receive hardship suspension information or reminders via the monthly Transaction Reports.

FTJ Fundchoice is now Orion Portfolio Solutions

A letter was circulated by FTJ FundChoice dated 9/9/2019 notifying plan sponsor of a rebranding to Orion Portfolio Solutions. You can view this letter here. CCC clients can contact us for the updated remittance instructions and the new W9.

Foresters Financial Advisors and First Investors Mutual Funds Ownership Transitions (updated 9/19/2019)


There are 2 transactions effecting the Foresters Financial organization:

  • The Foresters Financial Advisors are now Cetera Investors Advisors.
  • The First Investors Mutual Fund product will begin to reflect the name "Delaware Funds" in October 2019.

CCC received a letter dated 9/18/2019 stating that at this time Foresters remains custodian for the Delaware Funds and there are no changes effecting remittances or transaction processes at this time. Cetera Advisors will continue to service Delaware Funds. The branding on websites and forms will begin to reflect Delaware Funds in October. CCC has updated Foresters Financial payroll slots throughout our site to "Foresters Financial/ Delaware Funds" in anticipation of this branding transition.

Foresters has provided TPAs with this letter dated 6/3/2019 clarifying that representatives for accounts will not change, nor will the investment change at this time.

More information concerning these transactions can be found on the Foresters Newsroom Page.

Waddell and Reed Funds rebranded to Ivy Funds: Remittance Process Update (9/18/2019)


CCC has received notification of the following changes effective immediately:

  • Waddell and Reed Funds have been rebranded to Ivy Funds.
  • Remittance Checks for Waddell and Reed participants will need to be made payable to Ivy Funds.( Note: No change to the remittance address.)
  • No changes are needed for Online Remitters.
  • Ivy Funds Client Services they can be reached for questions at 1-800-366-2520 (choose Option 7).
  • A copy of the announcement regarding these changes is available here .

CCC's website has been updated to reflect the name change to Waddell & Reed/ Ivy Funds. The CCC Vendor ID will remain unchanged (Vendor ID# 110). Waddell and Reed/ Ivy Funds has provided an updated W9, CCC clients can contact us for this information.

Calvert Fair Fund Distribution Settlement Checks (8/28/2019)


Checks to participants stemming from a SEC settlement with Calvert were mailed out to impacted accountholders. The settlement administrator has established a FAQ (frequently asked questions) page and they have stated throughout, "NOTE: You should consult with your financial professional or tax advisor prior to cashing or depositing this check to determine the potential tax consequences and appropriate tax treatment for your particular situation." The phone number for the Calvert Fair Fund Distribution settlement administrator is 1-844-753-6351 should you have additional questions beyond those addressed in the FAQ.

USAA has updated their remittance process (updated 6/12/2019)


USAA circulated a letter explaining that they are dividing their remittance instructions by product type after 6/28/2019. The letter the sent explaining this change is available here.

Oppenheimer was purchased by Invesco. New Remittance Instructions Apply. (updated 5/28/2019)


Invesco purchased Oppenheimer in a transaction finalized in 2019. Participants were sent a letter dated 3/12/2019 (available here) explaining the pending transaction. No action is required by participants due to this change and the underlying investment product is unchanged, however Invesco will become the custodian "sponsoring" the Oppenheimer product (and CCC has updated Oppenheimer Funds name to "Invesco Oppenheimer Funds" on our site.

The remittance process has been updated per the FAQs provided online:

  • Online Remitters: Oppenheimer's online remittance site(called "CPS") is no longer available as of 5/24/2019. Existing online remitters should have received an email on 5/27/2019 from Invescoinvestmentservices@invesco.com with the instructions to log into Invesco's remittance site. If you had a login under Oppenheimer but did not receive an email from Invesco, you may wish to contact Client Services Representatives toll free at 1-800-959-4246 from 7:00 A.M. to 6:00 P.M. Central Time.

  • Paper-check Remitters: The following instructions apply:

    • Checks should be made payable to Invesco.

    • The mailing addresses should be updated as follows:

      • Via Regular Mail
        Invesco Investment Services, Inc.
        Attn: 403(b) Remittance (Plan ID _____**)
        P.O. Box 219078
        Kansas City, MO 64121-9078.

      • Via Overnight Courier
        Invesco Investment Services, Inc.
        c/o DST Systems, Inc.
        Attn: 403(b) Remittance (Plan ID _____**)
        430 W 7th Street
        Kansas City, MO 64105-1407

*Please note: The remittance instructions above do not apply to CCC's Common Remitting Clients.

**CCC recommends that the Plan ID # associated with a vendor remittance by mail reference the Plan ID# in the mailing address and in the remittance summary enclosed with the check. Invesco will continue to use the same Plan ID#s that were used by Oppenheimer.

Additional items to note:

  • No action is required by participants due to this change.
  • CCC has changed the name on our website to Invesco OppenheimerFunds. The CCC Vendor ID# 70 remains unchanged.
  • If you are a CCC Client requiring an Invesco W9, please contact us.

VALIC is renaming to AIG Retirement Services 4/10/2019


VALIC is renaming to AIG Retirement Services in 2019 and marketing under the "AIG Retirement" brand. They will not change the underlying legal names of the following entities and products: VALIC Financial Advisors, Inc., VALIC Retirement Services Company, and the VALIC Company I & II mutual funds. At this time there are no changes to the remittance process or check addressee, at this time this remains as VALIC. CCC will be updating the name of VALIC payroll slots to "AIG Retirement (formerly VALIC)"

Fidelity Converting to Processing Electronic Remittance Only by 12/1/2018 (10/22/2018)


Fidelity has reached out to 403(b) Plan Sponsors to let them know that they are transitioning to accepting all remittances electronically only or before 12/1/2018. For employers who are not already remitting online, Fidelity has created a Simplified Contribution Platform (SCP). For more information, see the Fidelity notice regarding online remitting for details.

Aspire Platform Changes to take place November 2018 (10/22/2018)


Aspire is migrating to a new system, Aspire's InvestLink, November 2018. During this transition there will be blackout periods as follows

  • Aspire will have a blackout period that will effect paper-based transaction processing Nov. 9th- Dec.3rd. Any transaction sent to Aspire during this period will not be processed till after Dec. 3rd.
  • There is an online access blackout Nov. 19th - Dec.3rd. This will effect participant's and administrators online access, however they will restore online access for remittance only on Nov. 26th.
  • Remittance will be effected in different ways, depending on the method.
    • Check-based remittance will have a blackout from Nov 15th- Dec. 3rd (no changes to where the checks are sent). Checks received during this period will be processed after the blackout.
    • Online remittance blackout will take place Nov. 19th -Nov. 26th.

Here is a downloadable list of Aspire November 2018 Platform Transition Critical Dates for your convenience.

Vanguard announces 403(b) Plan Changes for Participants and Plan Sponsors beginning in Nov. 2017(UPDATED 12/18/2017)


Vanguard has announce several key changes to their 403(b) business, including:

  • Vanguard is partnering with Newport Group to provide expanded services beginning in November 2017
  • Enhancements will be made to the Vanguard website
  • Roth Accounts and Loan services will be made available (subject to availability/ under the employer's plan)
  • Participants will have access to lower-cost Admiral share class for many of the mutual fund options
  • A new flat recordkeeping fee of $5 a month will be implemented in 2018 and will be dropping the existing annual fee of $15 per mutual fund.

The following website has been provide with FAQ regarding the transition https://investor.vanguard.com/403b-plans/transition

To login to your Vanguard 403(b) account, please visit https://investor.vanguard.com/my-account/log-on

Participants can reach the 403(b) Service Center by calling 1-800-569-4903.



To view older news items pertaining to 403(b) and 457(b) plans, please visit our Important 403(b)/457(b) News Archive.

 

 

Page Last Modified: 4/1/2020 3:53:14 PM