curnowc Posted November 5, 2008 Report Share Posted November 5, 2008 Proceeding of the 403 (b) Ad Hoc Committee School District No. 2, Yellowstone County High School District No. 2, Yellowstone County Billings, MT CALL TO ORDER September 25, 2008 On September 25, 2008, the 403 (b) Ad Hoc Committee held an employee meeting at the Lincoln Center in the Board Room at 4:30 p.m. Committee members present were Leo Hudetz, Dan Martin, Janet Baum, Travis Weidinger, and Jeff Greenfield. Matt Annalora, from Gallagher Benefit Services, also attended. COMMUNICATION FROM THE PUBLIC The following is a list of employees present at the meeting. Linda Beeler Pat Crisp Cheri Dale Kelli Delaney Cathy Downey Rose Duchesneau Jean Hayes Kathy Jackson Jeff Kinman Roxy KLundt Pam Krogstad Cathy Malone Robin Manfredi Mary Peterson Linda Raw Kay Schwartz Bev Silkwood Rose Steiner Sheri Weidinger The following questions were asked and concerns voiced by those in attendance. Pat Crisp asked about Gallagher Benefit Services and what was an RFP. Dan Martin explained the procedure and goals of the committee were to be flexible and have as many providers with as little change as possible. In order to comply with IRS regulations, the change has been mandatory. It was not optional for the District. Matt Annalora explained he assisted school districts across the country in complying with the new IRS regulations. He said the District needed to find someone to work with the vendors and to comply with the new regulations. He sent out Request for Proposal’s (RFP) to 80 to 90 vendors. About 18 companies replied to the RFP. Kathy Jackson wanted to know about the criteria of choosing the vendors and are they the best out there. Are they quality companies? Dan Martin said employees may be able to keep their favorite investment through this plan, but it might be through a different broker. Matt Annalora said all candidates are top quality. Tim Jackson asked about RBC and the 6,000 mutual funds. He wanted to know if they could still use Fidelity. Dan Martin explained the employees would have access to many funds. Jeff Greenfield said the employees would have lots of options but they may not be able to use their current broker. Matt Annalora said there was a tremendous amount of choice for the employees. Jeff Kinman was concerned about rolling over or switching to another account if a person does not like the vendor choice. Can they change to another option? Can they take out their money without a triggering event? No, they can not take their money out without a triggering event, such as a termination or reaching age 59 ½ years. Sheri Dale asked Matt Annalora if he would advise participants and meet with them individually. Dan Martin explained there would be advisors to assist the employees. The District is not suggesting which advisor is the best. It is the responsibility of each employee to make the best decision to meet their needs. Jeff Greenfield suggested participants should talk to their current vendors and see how this will affect them. Dan Martin indicated to the employees that if their current vendor’s name is not on the list, then their vendor may be able to sign on as an advisor with a participating vendor. Pat Crisp wanted to know how the list was narrowed down to eight. Leo Hudetz stated originally there were 22. Based on the composite scores from Gallagher Benefit Services and other criteria, the committee rated each to reach the final eight. Kelly Delaney hopes more teachers will start investing and asked if this investment will have a charge. Matt Annalora explained a vendor might have a fee. This might be a positive with lower fees and better service than what employees currently have with their vendor. Dan Martin stated all participants will get statements. He also informed the employees about the upcoming benefits fair. Rose Steiner asked if they could know the three companies in the running for the TPA. Leo Hudetz stated the Board meets on October 20, 2009 for their approval. After their approval, another letter will go out to all employees explaining the final decisions. “Orphan accounts” can be parked and left there or rolled into a new account. The employees were told to check with their current vendor if they would have any surrender fees when they roll over to the new account. Gary Madler asked about mutual funds with no front end load. Vanguard is not on the list. Tim Jackson asked if they could still invest in Vanguard. Rose Steiner asked if participants could continue to invest in their current fund until January. They could keep investing until December or January. Kay Schwartz asked who where the vendors. Kathy Malone asked when a person withdraws funds from retirement who do they use, broker or company. Linda Roth had concerns as a person gets closer to retirement, rolling it over in five years and getting the money, then old broker does not get any benefit. Would they have to have two accounts and two brokers? Kathy Jackson asked if your choice quits, do you go to a second choice? Leo Hudetz stated a committee will continue to meet at least quarterly in order to comply with regulations of the 403 (b). The District will select more than one company as a participating vendor. Rose Steiner asked if an employee has a current vendor, should they ask them if they have an information sharing agreement. Leo Hudetz stated that ING would consider utilizing the employees’ current advisors, if they pass ING’s scrutiny. Matt Annalora said of the seven finalists, four companies have indicated they will work with other advisors. Pat Crisp asked of the seven on the list, how many will be picked. No set number has been established at this time. Tim Jackson asked the committee to keep an open mind and choose the most. Julie Blakesly asked if the participants are going to be offered more than they have now. Are they going to get information on what will be offered? Matt Annalora stated he could put together a contact sheet or they can contact the companies. Pat Crisp asked if the committee could give the participants a list of what is available. She wants the data. Dan Martin advised that the vendors are interested in getting into the schools to talk to the employees. Cathy Downey asked the people at the Lincoln Center not be forgotten. Rose Steiner asked if they have the option to change their deposit and/or stop contribution and catch up later. The 403 (b) limits are $15,500 for those under 50 years old and $20,500 for those 50 years or older. ADJOURNMENT The meeting was adjourned at 5:25 p.m. _____________________________ Leo Hudetz, District Clerk ____________________________ Janet Baum, Recorder Link to comment Share on other sites More sharing options...
Recommended Posts
Archived
This topic is now archived and is closed to further replies.