texas a m university faculty senate april 14 2008
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Texas A&M University Faculty Senate April 14, 2008. Presented by: Kevin P. McGinnis Director, Risk Management and Employee Benefits The Texas A&M University System. ORP/TDA Perspective. 5,791 ORP participants and 3,459 TDA participants 78% of accounts are with current active vendors

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texas a m university faculty senate april 14 2008

Texas A&M UniversityFaculty SenateApril 14, 2008

Presented by: Kevin P. McGinnis

Director, Risk Management and Employee Benefits

The Texas A&M University System

orp tda perspective
ORP/TDA Perspective
  • 5,791 ORP participants and 3,459 TDA participants
    • 78% of accounts are with current active vendors
    • 22% of accounts are with inactive
      • 14% with American and Van Kampen Funds
      • Remaining 8% with approximately 60 inactive vendors
  • ORP vendors in the Big 12 and Ivy League Schools
    • Big 12 schools average between 3 and 4 vendors
    • Most Ivy League schools offer 3 or fewer vendors
impetus for change
Impetus for Change
  • Internal Revenue Service is increasing regulations on 403(b) plans, requiring:
    • Information sharing
    • Increased plan documentation requirements
  • Employer monitoring requirements will be limited to IRS requirements and access limited to positions approved by legal and audit
  • A&M System is increasing retirement education across the employee spectrum
impact on existing employee orp or tda accounts
Impact on Existing Employee ORP or TDA Accounts
  • For active or inactive vendors which sign the information sharing agreement there will be no change in current employee accounts
  • Account vendors who do not sign the information sharing agreement will be non-compliant vendors and ineligible for new contributions after December 31, 2008; existing balances will not be affected
  • American Funds and Van Kampen have stated they will not comply with the information sharing requirement and are now non-compliant vendors
impact on new employee orp or tda accounts
Impact on New Employee ORP or TDA Accounts
  • ORP and TDA vendors were selected through a recertification process from the certified vendors participating in the plan
  • Vendors on the active vendor list effective 9/1/08 are:

Fidelity TIAA-CREF AIG Retirement

ING RS Group

Metlife Resources Lincoln Financial

    • Current vendors becoming inactive on 9/01/08:

USAA Security Benefit Merrill Lynch

Vendors have agreed to information sharing and will still be eligible to receive contributions on existing accounts.

vendor definitions
Vendor Definitions
  • Active Vendor: Can accept contributions on existing accounts and open new accounts for existing and future employees
  • Inactive Vendor: Vendor can accept contributions to existing accounts but may not open new accounts for existing or future employees
  • Non-Compliant Vendor: Vendor elects not to comply with IRS rules.
      • May maintain the employee account balances as of December 31, 2008.
      • All contributions past that date must be moved to active vendors
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