Products June 29, 2009

Diversified Announces Intent to Sponsor 403(b) Prototype

Diversified Investment Advisors, Inc. said it has notified the Internal Revenue Service (IRS) of its intent to sponsor one or more 403(b) prototype plans.
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In its announcement, Diversified said that in response to the IRS’ request for written comments on the proposed program and sample language, it submitted comments requesting that the IRS add vesting schedules for employer contributions and certain church-specific provisions. In addition, Diversified suggested that the language in the proposed list of Required Modifications be clarified in order to address the needs of a diverse group of 403(b) plan sponsors.

Diversified’s concerns are similar to those of other providers and trade groups who raised the issue of vesting schedules and accommodating for plans with multiple vendors (see “Trade Groups Comment on 403(b) Prototype Program” and “SPARK Offers Suggestions for 403(b) Prototype Program“).

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The IRS issued the proposal for the prototype program in April (see “IRS Releases Proposed 403(b) Prototype Document Program“).

Products June 29, 2009

ING Unveils Transition Services Offering

Large corporate and government retirement plan clients of ING U.S. Retirement Services are being offered a new suite of services aimed at helping employees through various workplace transitions.
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An ING news release said the no-cost program, Taking Control, is designed to help employees approaching retirement; leaving their jobs; or affected by a corporate action, such as the termination of a benefit plan, or the sale of a business.

ING’s Taking Control program is a menu of three distinct services for sponsors or employees depending on their specific situations or needs:

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  • A dedicated team of registered, phone-based financial professionals can provide employees with objective education, personalized guidance and counseling on the benefits and risks associated with all of their transition options. This includes staying within their plan, rolling assets into another plan or an IRA, taking cash distributions or exploring other income and withdrawal choices.
  • Upon request, employees who are planning for or entering retirement can take advantage of ING’s Retirement Readiness services. ING’s focus is on participants who are 50 years or older, as well as those within five years of retirement.
  • ING’s Benefits Solutions services are designed for employers undergoing corporate actions such as large workforce reductions, the closing or sale of a business, retirement plan terminations, and other complex transitions. ING partners with a plan sponsor’s human resources department and, when appropriate, outside vendors to create a flexible and customized solution.

 

 

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