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What Matters Now in the 403(b) Market

PlanMember understands the complexities of 403(b) plans

Our nonprofit clients depend on it. With changing legislation and significant economic changes at every turn, 403(b) plan sponsors are faced with mounting challenges but often have little support. PlanMember steps into that situation, and with experience and expertise we help ensure that 403(b) plan sponsors get the most out of their plan. 

When the IRS recently issued new 403(b) regulations, it was the first major amendment to 403(b) plan administration in nearly 60 years. As a result, investment services providers who could not meet the new requirements began quickly exiting the 403(b) market. For plan participants, this resulted in a significant loss of investment choices. For employers, increased responsibility meant struggling to clarify which investments should remain in the plan. Communicating new information clearly to employees and ensuring the plan met compliance standards became a significant challenge for many.

As we enter the new 403(b) plan era, three things matter to sponsors:

• Restoring choice for 403(b) participants
• Educating and communicating with employees
• Finding partners who can help sponsors stay in compliance

To address these issues, we created the PlanMember Model Plan. Featuring guaranteed fixed annuities*, managed portfolios, and mutual funds from many of the nation's most recognized mutual fund and insurance companies – including some who exited the direct 403(b) market – PlanMember brings back the power of choice.

PlanMember also provides employee education and one-on-one consultation. We can provide sponsors with sample participant communication, Legislative Updates and, if needed, an independent Third Party Administrator recommendation. Also, as many sponsors seek consultants to evaluate their plans, PlanMember can help identify a truly independent consultant that understands the complex nuances of 403(b) plans and will act in the best interest of the plan sponsor.

With PlanMember as your partner, you’ll always have the latest in 403(b) plan requirements and solutions at your fingertips. For more information, contact Chris Guanciale at (800) 874-6910, extension 2329, or by email at cguanciale@planmember.com.

*Guarantees and benefits are based on the claims-paying ability of the underlying insurance company.

Withdrawals from annuities, including partial withdrawals and surrenders, may be taxable. If you take a taxable withdrawal before age 59 ½, you may have to pay a 10% penalty to the IRS on the amount of gain in your contract, in addition to your normal income taxes.

The tax-deferral benefit offered by annuities provides no additional tax benefit if they are held in tax-qualified accounts such as IRA, 403(b) or 401(k). Special rules governing annuities issued in connection with a tax-qualified retirement plan restrict the amount that can be contributed to the contract during any year.

Before investing carefully read the prospectus(es) or summary prospectus(es) which contain information about investment objectives, risks, charges, expenses and other information all of which should be carefully considered. For current prospectus(es) call (800) 874-6910. Investing involves risk. The investment return and principal value will fluctuate and, when redeemed, the investment may be worth more or less than the original purchase price.

Asset allocation or the use of an investment advisor does not ensure a profit or guarantee against loss.