Important 403(b)/457(b) News

Changes ahead for Vanguard 403(b) Services (8/7/2023, updated 9/21/2023)

Vanguard 403(b) Services will be migrating to the Ascencus record keeping platform in November 2023.

Participants will be affected by the following blackout dates and notices regarding these dates have been circulated to account holder per this notification.

All transaction activity and account updates will be suspended beginning at market close (generally 4:00 p.m. ET) on Thursday, November 9, 2023. At this time, participants will be able to view their 403(b) account balance on vanguard.com, but details about their account will be unavailable until the blackout period is over.
We anticipate that during the week of November 13, 2023, the blackout period will end, and trading activity and account updates will resume.

From a plan sponsor prospective, we are awaiting for more information. A copy of the notification of the original notification in August to plan sponsors is available here. We anticipate the following big changes effecting plan sponsors coming in the next few months and will provide information on them as soon as it is made available to CCC:

Plan IDs will be updated
Remittance instructions will be changing
The website experience will change for both plan sponsors and participants (however website addresses are to remain the same)
Participant transaction forms will change

CCC will send email alerts out to all plans regarding the changes as we learn more.

IRS Delays SECURE 2.0 Roth Catch-up Provision from 2024 to 2026 (8/25/2023)

On 8/25/2023, the IRS released Notice 2023-62, which delays until 2026 the Roth Catch-up Rules that were to have applied in 2024 to participants with wages in excess of $145,000 in the previous year, as described in Section 603 of the SECURE 2.0 legislation. This delay followed calls from the industry for more time to better prepare for the changes. Another purpose of Notice 2023-62 was to allow more time for the IRS to provide additional guidance on the more complex technical requirements of the SECURE 2.0 Act.

Click here for general information about Roth contributions.

Click here for information about how CCC is preparing for implementation of the new SECURE 2.0 Act requirements.

USAA Investments (Mutual Funds) rebranded to Victory Funds (effective 4/24/2023)

Victory Capital circulated notification that USAA Mutual Funds are rebranding to Victory Funds effect 4/24/2023. I copy of this notice is available here.

Reminder: Change to Aspire Remittance Instructions and Address (12/15/2022)

Aspire changed their remittance processor to Matrix Trust (a processor that serves many vendors) in January 2022 but recently circulated a reminder. Aspire remittance mailing address, payable line on checks, and remittance summary instructions are below:

New Mailing Address:

MG Trust Company, LLC
Attn: TPA 000388 (Aspire Plan ID* ________)
P.O. Box 3595
New York, NY 10008-3595

Checks should be made payable to:

Matrix Trust Company- TPA 000388 (Aspire Plan ID* ________)

Remittance Summaries should contain the following:

Aspire Plan ID*.
Plan Name (this is the employer name followed by "403(b) Plan")
Participant name
Complete participant SSN or Acct number
Source (403(b) Traditional pretax elective deferral, 403(b) Roth elective deferral, 403(b) Employer contribution)
Dollar amount of contribution for sited source
Payroll Date

*CCC clients can find Aspire Plan IDs here Based on CCC's experience with this remittance processor, we suggest noting "Aspire" and your Plan ID on every communication/document and note in your records somewhere easily accessible that Matrix Trust is the processor for Aspire as it will help connect the dots should any correspondence or returned checks be issue by Matrix without a reference to Aspire.

The instructions CCC received from Aspire are available here.

IRS released 2023 Contribution Limits (10/24/2022)

The IRS released Notice 2022-55 containing the 2023 403(b) and 457(b) plan limits:

The 2023 402(g) Elective Deferral Limit is increasing to $22,500 (up from $20,500 in 2022)
The 2023 Age 50 Catch-up is increasing to $7,500 (up from $6,500 in 2022)

All CCC client will be receiving updated Universal Availability (UA) notices in the coming days with the new limit.

AIG Retirement is changing to Corebridge Financial (9/20/2022)

AIG Retirement is changing to Corebridge Financial per this notice. No changes have been announced at this time that effect remittance or participant accounts, however we will update this news item as additional information becomes available.

FTC (formerly Waddell and Reed/ Ivy Funds) Participant FAQs(4/19/2022)

FTC issued this FAQ, a a participant reference guide,and an account access guide to answer participant questions concerning account access going forward, how to access historical account information if needed, and where participants should call in with questions. (Note: The FAQ document references SS&C, this is the recordkeeper who issues statements and runs the online access for FTC accounts.)

Waddell and Reed/ Ivy Funds changing to FTC Remittance Changes Effective Immediately (4/19/2022)

Waddell and Reed/ Ivy Funds payroll slots are subject to a change in the remittance instructions effective immediately. Please update your records to reflect the following (note that the PO BOX and the zipcode has changed, as well as the payee):

Checks must be made Payable to FTC (Fiduciary Trust Company of New Hampshire), accompanied by a remittance list.
Updated Regular Mail Address: – FTC PO Box 219638 Kansas City, MO 64121-9638
Updated Overnight (must include Suite number) FTC 430 W 7th Street Suite 219638 Kansas City, MO 64105-1407

If you are a CCC Client using electronic remittance for the vendor, please note the vendor website and wiring instructions have also changed. Please contact CCC for updated information.

Payments received after May 6th via the old processes may be returned, so it is critical to update the remittance information to avoid delays to deposits.

We were informed that there is no change to the participants at this time. There may be additional changed to come, CCC will update this information when additional details are available.

Vanguard Institutional Target Retirement Funds merging into Vanguard Target Retirement Funds in 2022. (11/29/2021)

Vanguard circulated this notice explaining that Vanguard Institutional Target Retirement Funds will be merging into Vanguard Target Retirement Funds in February 2022. Note: There will be blackout from Feb. 9th through Feb. 18th while the change takes place. This is expected to reduce the expense ratio on these funds and requires no action on the part of participants.

IRS released 2022 Contribution Limits (11/4/2021)

The IRS released Notice 2021-61 containing the 2022 403(b) and 457(b) plan limits:

The 402(g) Elective Deferral Limit is increasing to $20,500
The Age 50 Catch-up remains $6,500

Will be providing all client employers with Universal Availability (UA) in the coming days with 2022's limits.

Fidelity Issues a Notice Concerning Changes to their Four-in-One Index Fund (10/18/2021)

Fidelity issued this notice concerning the renaming of their Four-in-One Index Fund Index Fund to the Fidelity Multi-Asset Index Fund as well as changes to the asset allocation. Employers as well as participants using this Index Fund are receiving this informational notice.

Vanguard Remittance Changes (Effective 4/16/2021)

Vanguard (serviced by Newport) contacted CCC and employer contacts regarding changes to their remittance instructions for 403(b) Plans for both mail and electronically remitted plans. All CCC clients were sent emails on April 1, 2021 detailing the changes as they have JP Morgan Chase process remittance going forward and the issuing of new Plan Account Numbers to all Plan that must be referenced in remittance beginning this month. If you have any questions or concerns regarding these changes please contact CCC.

IRS Provides a Tax Time Guide for RMDs (3/16/2020)

Under both the SECURE Act and the CARES Act, changes were made to the RMD rules. The IRS published this great Tax Time Guide explaining the new Age 72 RMD change for 2021 and the impacts of waived the 2020 RMD requirement. CCC has also posted a short explanation of how the RMD rules work on our 403(b) Transaction Info Page.

Brighthouse Life Insurance Company has updated their Remittance Information (2/1/2021)

Brighthouse Life Insurance Company has updated remittance Instructions for remittance the receive 2/16/2021 or later. CCC is sending a communication to all client plans with Brighthouse as an Active Payroll Slot vendor so they may update their information ASAP, if have questions please contact CCC.

Mass Mutual has been acquired by Empower (1/26/2021)

Mass Mutual has been acquired by Empower in a sale that was finalized January 2021. At this time there is no change to remittance processes or contacts, however we anticipate there may be changes ahead as Empower moves forward with the transition and will we provide updates as they become available. The change to Empower branding has begun, this is viewable on the former Mass Mutual website.

The Saver's Credit (11/2/2020)

The Saver's Credit gives you money back on your taxes in exchange for contributions you make to your employer's 403(b) plan and/or 457(b) plan. The amount of the credit is 50%, 20%,10% of your contributions up to $2,000 ($4,000 if married filing jointly). You are eligible for the credit if your IRS Adjusted Gross Income is $32,500 for a single filer ($65,000 if married filing jointly). And stay tuned, Congress may be improving the credit in 2021.

More information on the Saver's Credit can be found on the IRS website.

Contributions Limits for 2021 (released 10/26/2020)

The IRS has released the new 403(b) and 457(b) limits for 2021:

The elective deferral limit remains $19,500
The Age 50 Catch-up amount remains $6,500, allowing those age 50 or over by 12/31/2021 to contribute up to $26,000.

CCC will be sending updated Universal Availability notices with the 2021 limits to all of our clients shortly.

Great American Insurance Group is No Longer Opening New 403(b) or 457(b) Annuity Investors Life Accounts (7/14/2020)

CCC has been alerted that Great American will cease offering new Annuity Investors Life Accounts accounts in the 403(b) and 457(b) market after 7/31/2020. Please note: this change does not affect existing Annuity Investors Life Accounts account holders, those account may continue to serviced by Great American and receive remittances as allowable under an employer's plan. Great American's customer service line is 1-800-854-3649 any accountholder questions or concerns. A sample version of the announcement sent to Plan Sponsors is available here.

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 may make 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:

*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)"

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


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