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ERIC Number: EJ813124
Record Type: Journal
Publication Date: 2008-Oct-1
Pages: 2
Abstractor: ERIC
Reference Count: 0
ISBN: N/A
ISSN: ISSN-0277-4232
Nurturing the Nest Egg
McNeil, Michele
Education Week, v28 n6 p26-27 Oct 2008
Seemingly arcane new federal rules about supplemental retirement plans have sparked a seismic shift in responsibility for school districts, thrusting them into the retirement business with new oversight--and burdens--involving their employees' 403(b) accounts. Once merely paper-pushers between their employees and investment choices, district business officials must now vet and pick the investment firms that offer such plans, craft a highly technical document governing the 403(b) accounts, and assume responsibility for making sure employees seeking hardship withdrawals or loans from their accounts are following the rules. The clock is ticking toward the January 1 Internal Revenue Service (IRS) deadline to comply with the most significant change in 403(b) plans since the regulations were first issued in 1964. The impact of the new IRS rules, which became final in July 2007, will be felt far beyond district business offices. Teachers and other employees may find their investment choices limited as their districts, for simplicity's sake, seek to scale down the number of investment companies allowed to offer their plans. Even as the new rules have left district officials confused and, in some cases, overwhelmed, they also have provided a business opportunity for companies and consultants ready to swoop in and offer their services.
Editorial Projects in Education. 6935 Arlington Road Suite 100, Bethesda, MD 20814-5233. Tel: 800-346-1834; Tel: 301-280-3100; e-mail: customercare@epe.org; Web site: http://www.edweek.org/info/about/
Publication Type: Journal Articles; Reports - Descriptive
Education Level: Elementary Secondary Education
Audience: N/A
Language: English
Sponsor: N/A
Authoring Institution: N/A