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Revised 403(b) Committee Minutes - September 23, 2011


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Proceeding of the 403 (b) Committee Meeting

School District No. 2, Yellowstone County

High School District No. 2, Yellowstone County

Billings, MT

 

 

 

 

 

CALL TO ORDER September 23, 2011

 

The 403(b) Committee meeting was held at the Lincoln Center on Friday, September 23, 2011, at 11:00 am. Committee members present were Leo Hudetz, Lindy Graves, Deana Elder, Jay Lemelin, Patricia Hubbard, Jeana Lervick, and Josh Middleton. Matt Analora, from Institutional Plan Advisors also was in attendance.

 

COMMUNICATION FROM THE PUBLIC

 

There was no communication from the public.

 

PLAN UPDATE

 

Leo Hudetz welcomed everyone to the committee meeting. The committee is important to the employees. The Committee Charter requires the Committee meets twice a year, usually the Committee meets once in the fall and once in the spring. Leo Hudetz gave an

overview of IRS regulations; putting more accountability and restrictions on the 403b. The committee decided to have a Formal Request for Proposal. The district contracted with Matt Analora, who was with Gallagher and Associates, in Denver, to assist the Committee in the process. With the assistance of Gallagher and Associates, the Committee came up with an approved Plan Document, the Charter for the Committee, and five vendors. The five vendors are reviewed on an annual basis. Leo Hudetz stated he had no changes to recommend but if anyone has any questions or recommendations, please advise.

 

Josh Middleton inquired about Symmetra being on the list. Leo Hudetz explained Symmetra was one the original vendors and they chose to share their information with PlanwithEase.

 

 

 

 

 

ELECTION OF CHAIR, VICE CHAIR AND RECORDKEEPER

 

Josh Middleton nominated Leo Hudetz for the Chair. It was seconded by Lindy Graves.

The nominations for the Vice Chair was opened with Josh Middleton nominated Jeff Greenfield and Lindy Graves seconded the nomination.

Jeana Lervick nominated Eva Anthony as the Recordkeeper and Patricia Hubbard seconded the motion.

 

PLAN REVIEW

 

Leo Hudetz explained how ING is an extension of PlanwithEase. When the RFP process was completed, the District could have paid for a third party administrator or ING stated PlanwithEase is an independent entity but there is no charge for using them. PlanwithEase is running smoothly with no problems to date.

 

There are approximately 300 participating with $110,000 per month contributions. Matt Analora said our total percentage of participants is about average.

 

PLAN DOCUMENT REVIEW

 

All attendees reviewed a copy of the Plan Document. The Plan Document has not been changed since implementation; however, the District has the right to change the document at any time with the approval of the Board.

 

Leo Hudetz reviewed some of the features of the Plan, such as hardship loans, rollovers, and Roth accounts. Leo Hudetz talked the permissive service credit transfer allowable. The employee may buy back years of service from State of Montana Retirement Plan with 403b money if they are eligible.

 

The vendors have some ground rules to meet with employees. The vendors can go to the schools to meet with employees at a non-teaching time, such as lunch. The vendors are responsible to contact the principals to let them know when they will be there. The vendors may have the schools distribute information sheets via their school mailboxes.

 

The only issue Leo Hudetz has come across is when an employee wants to take out money for a loan or hardship. In the past, the employee would need a signature from Leo Hudetz. Currently, if the employee is in one of the five current vendors, they need to go on-line with Planwithease. The employee will need to printout an authorization form to take to their vendor. Retirees still want to have Leo Hudetz complete the forms for them. Current employees must have a qualifying event to take money out early. Leo Hudetz still needs to sign for the retirees who had their contributions to a vendor that is not on the approved list.

 

FALL 2011 _- 403b FAIR

 

Since 2008 the District has had a 403b Fair in the fall. All vendors are invited and notice has been given to all employees. This has been held after school with door prizes and refreshments. The attendance has been very low and the ones that do come are already participating in the 403b. Several options have been suggested, such as moving it to another location or should the district even have it? Josh Middleton thought having it at a different location with parking might be helpful. Matt Analora stated one of their clients did something similar; they did it centralized where the admin was done but went to a bi-monthly rotation of vendors. Jay Lemelin thought with the five vendors, each in different locations on different days. Leo Hudetz stated we did not have to have it but

we are required by IRS to notify every employee in the District of their rights to participate in the 403b. In the past, it was tied in with the 403b Fair but it does not need to be. It was decided to think about what they would do for this year. It was mentioned that possibly right after the winter break might be a good time.

 

Leo Hudetz introduced Matt Analora to the Committee. Leo Hudetz stated the School District is very happy with the service Matt Analora has provided.

 

Matt Analora stated our Plan Document is up-to-date and there is no need for change.

 

Matt Analora discussed the possibility of reviewing the performance of the approved accounts. Because of average high account balances, there is an opportunity for some negotiations for lower fees, remove wrap charges, and get backend loads dropped. His company has had a lot of success with doing this and Matt Analora would like to negotiate it on behalf of the School District.

 

The School District may be able to re-negotiate with our current vendors for reduced fees being charged. Matt Analora is confident about being able to reduce the fees. One of the options available for the money saved is that it could be returned back to the participants. After the money is released by the School District, the third party administrator could divide it between all participants and add it to their accounts.

 

The School District is meeting all the requirements for employee notification.

 

Leo Hudetz wants to get the best product for the employees. Matt Analora will draft a proposal stating there will be no out of pocket cost to the District. After the proposal is received and discussed, a recommendation will be given to the Board, at a monthly meeting.

 

After the proposal is ready, the Committee will meet to review the proposal and also discuss options for the 403b fair.

 

APPROVAL FOR MINUTES

 

Deana Elder made a motion to approve the minutes from the May 18, 2011 meeting. Leo Hudetz seconded the motion. It was voted on and approved unanimously.

 

 

 

ADJOURNMENT

 

The meeting was adjourned at 12:20 pm.

 

__________________________

Leo Hudetz, District Clerk

 

____________________________

Eva Anthony, Recorder

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