403(b) Committee Minutes - 1/23/08

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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 January 23, 2008

 

The 403 (b) Ad Hoc Committee Meeting was held at the Lincoln Center on Wednesday, January 23, 2008, at 10:00. Committee members present were Leo Hudetz, Dan Martin, Jeff Greenfield, and Dennis Lusin. Thomas Harper was excused from the meeting.

 

Leo discussed his attendance of the WebCast on a forum about what is required for the 403 (b) regulations and Revenue Procedure 2007-71.

 

It was agreed to include representatives from the BCEA and MPEA at future meetings.

 

LETTER TO EMPLOYEES

 

The letter was discussed and the following changes/additions were agreed upon.

• Regulations are to be implemented by August, 2008.

• Addition of having employee meeting for their input and education

 

DISCUSSION OF PLAN DOCUMENT

 

The sample Plan Document was discussed. It was agreed the Plan Document should stay as close as possible to the IRS sample as to not be rejected by the IRS. Rejection by IRS would make deferral compensation taxable. Items agreed to by the Committee are as follows:

 

PLAN DOCUMENT CHANGES AGREED UPON

 

1.22 Valuation Date The valuation date shall be the last day of

calendar quarter.

 

2.1 Eligibility All employees will be eligible to participate

 

2.2 Compensation Reduction Election At least $200 annual deferral needed to

participate.

 

2.2 (b) (1) (2) and (3) Rules for New Employees Delete

 

 

 

 

 

2.4 Change in Elective Deferral Election

The Committee recommended separating this section into two subsections. The

first two sentences would be a separate section 2.4 (a).

 

2.4 (a) (New) Participation, Amounts, and Direction Keep IRS language in

first two sentences.

 

2.4 (b) (New) Change in Beneficiary Designation Change last sentence of 2.4

to state, “A change in

beneficiary designation shall

take effect when proper

notification is provided and

the election is received by

the vendor.”

 

2.5 Contributions Made Promptly Change “15 business days following the end

of the month” to:

“10 days following pay date.”

 

3.1 Basic Annual Limitation End the last sentence after the word “code”

and delete references to 2007 limits.

 

4.1 – 4.3 Loans Allow loans and keep IRS language in

Section 4.

 

 

5.5 Hardship withdrawals Allow hardship withdrawals and keep IRS language in section 5.5

 

6.4 (a) (b) Contract and Custodial Account Exchanges Delete

 

8.2 Amendment and Termination Add to IRS language, “With notice to be given

to all participants at least 90 days prior to

termination.”

 

9.5 Payment to Minors and Incompetents Delete “Administrator” and

add “legally designated”

 

9.6 Mistaken Contributions Leo to get clarification

 

9.7 Procedure when Distributee Cannot Be Located Replace “continue to hold

benefits due such per person”

with “adhere to the unclaimed

property laws of the State of

Montana.”

 

 

 

 

It is the committees’ plan to have the Plan Document completed by the end of February, 2008.

 

ADJOURNMENT

 

The meeting was adjourned at 11:34 a.m. The next meeting is scheduled for February 15, in Room 216.

 

 

 

__________________________

Leo Hudetz, District Clerk

 

______________________________

Eva Anthony, Recorder