403(b) Plan

FAQs

Q: When will the new plan be effective?

A: IRS regulations require new plans to be in place by January 1, 2009.

Q: When will I receive information about the new plan and its options?

A: Information will be available late spring or early summer so employees will have ample time to consider investment options before making their decision.

Q: How will vendors be selected?

A: Vendor selection will be based on "best of market" analysis of fund returns and expenses. Vendor evaluation will include criteria such as relative performance, history, manager tenure, minimum assets, Morningstar rating, expense ratio, alpha, beta, Sharpe ratio and standard deviation.

Q: What happens if my current company is not on the selected vendor list?

A: The IRS has not addressed how to handle "orphan" vendor groups. It is probable that future contributions could be made with the new vendor and previous contributions could either remain with the current vendor or be transferred to the new vendor.