403(b) Committee Minutes 9/30/09

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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 30, 2009

 

The 403(b) Committee meeting was held at the Lincoln Center on Wednesday, September 30, 2009, at 12:00 pm. Committee members present were Leo Hudetz, Jeff Greenfield, Travis Weidinger, Janet Baum, Cheryl McCall and Peter Gesuale. Dan Martin and Thomas Harper were excused.

 

Visitors present were Dennis Hall and Ed Aders of D.A. Davidson Company.

 

COMMUNICATION FROM THE PUBLIC

 

There was no communication from the public.

 

COMMITTEE CHARTER

 

Leo Hudetz gave a background review of the past 403(b) Ad Hoc Committee actions on the implementation process of the new IRS regulations. He explained there were sixty previous 403(b) vendors. The Committee conducted the RFP process resulting in the approval of five 403(b) vendors. The program is going well. A decision was made last year to hire a Third Party Administrator to reduce administration for the District. The Third Party Administrator is PlanWithEase and they are associated with ING. As of September 15th, the District has been live with the third party administrator. Ameriprise does not currently have their data feeding into PlanWithEase. All employees can access their accounts at www.planwithease.com. All loans and hardship withdrawals will go through PlanWithEase.

 

Leo Hudetz stated that an email informing employees how to access their 403(b) account at www.planwithease.com will be going out in the next couple days to all employees.

 

Leo Hudetz stated the 403(b) Committee Charter was passed by the Board on September 21, 2009. A copy of the charter was distributed by Leo Hudetz. Some of the duties of the Committee are:

1. Meet at least twice a year

2. Report to the Budgeting for Results twice a year

3. Report to the Board twice a year

4. Review the plan document

 

 

ELECTIONS

 

According to the Committee Charter, the Committee needs to elect a chair person and a vice chair person for the year from their committee members. Also, a record keeper, who does not need to be a committee member, will need to be elected for the year.

 

Jeff Greenfield nominated Leo Hudetz for the Chair person and Janet Baum seconded it. It was voted on and passed unanimously.

 

Janet Baum nominated Jeff Greenfield as Vice Chair and Cheryl McCall seconded. It was voted on and passed unanimously.

 

Janet Baum nominated Eva Anthony for the Record Keeper and Leo Hudetz seconded. It was voted on and passed unanimously.

 

Leo Hudetz explained that it was not necessary for all of the committee members to report to the Budgeting for Results Committee and the Board of Trustees. Janet Baum made a motion for Leo Hudetz to be the first person to report to the Budgeting for Results Committee and the Board of Trustees with Jeff Greenfield as the alternate. Travis Weidinger seconded the motion. The motion was approved unanimously.

 

HARTFORD REPRESENTATIVES

 

Leo Hudetz told the Committee that one of the five vendors approved during the RFP process was Hartford/UBS. At that time The Hartford representatives were Dennis Hall and Ed Aders of UBS. Last spring they left UBS and joined D.A. Davidson. Leo Hudetz requested a letter from Hartford stating Hartford does approve Dennis Hall and Ed Aders as representatives for Hartford, with D.A. Davidson being the broker dealer. This was affirmed in a letter received from William Robinson of Hartford, which is in the packet. Currently district employees do not have any local representatives with Hartford.

 

Dennis Hall and Ed Aders distributed a written document outlining the important points in the letter from Hartford. Dennis Hall explained the letter points out the only contractual relationship that exists is between Billings Public Schools and The Hartford. Billings Public Schools is not bound by a contract to continue its relationship with UBS. The letter also states, “…the relationship with the contract owner [billings School District] is with the registered representative [Hall & Aders] and not with the broker dealer” [uBS or D.A. Davidson & Co.].

 

Dennis Hall and Ed Aders requested to be allowed to resume their representation of The Hartford’s 403(b) plan as part of the Billings Public Schools 403(b) plan. They requested D.A. Davidson and Co. be noted as their broker/dealer.

 

Leo Hudetz confirmed with both Dennis Hall and Ed Aders they will be the only two at D. A. Davidson representing Billings Public Schools unless it was requested by Billings Public Schools they wanted someone else. They will abide by the original terms of the agreement with Hartford. Dennis Hall and Ed Aders said, as representatives, they must follow the terms, it is not optional.

 

UBS had been invited to attend the meeting. No representative attended the meeting.

 

DISCUSSION OF HARTFORD REPRESENTATIVES

 

After discussion of the committee members, it was agreed that Dennis Hall and Ed Aders are providing a product and they both seem eager to provide service to the employees. The information received from Hartford confirms it does not matter what resprentative the District chooses.

 

Leo Hudetz made a motion to recommend that the Budgeting for Results Committee and Board of Trustees allow Dennis Hall and Ed Aders to continue to represent the Hartford under the employment of D.A. Davidson. Jeff Greenfield seconded the motion. The motion was voted on and passed unanimously.

 

This recommendation will be presented to the Budgeting for Results meeting October 12, 2009, and the Board of Trustees meeting on October 19, 2009. This will be a consent item for both meetings.

 

APPROVAL OF MINUTES AND ADJOURNMENT

 

Jeff Greenfield made a motion to approve the minutes from the November 19, 2009 meeting. Janet Baum seconded the motion. The minutes were approved unanimously.

 

The meeting was adjourned at 12:56 pm.

 

__________________________

Leo Hudetz, District Clerk

 

____________________________

Eva Anthony, Recorder