Products February 26, 2019

Retirement Specialists Tapped for NTSA Financial Literacy Program

The program is aimed at promoting NTSA’s dual goals of improving the understanding of retirement planning options for teachers and school staff and boosting 403(b) plan participation.

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“School district employees need the right information to make the best choice regarding their retirement security,” says Brent Neese, executive director of the National Tax-Deferred Savings Association (NTSA).

In support of the NTSA’s dual goals of improving the understanding of retirement planning options and improving participation rates in 403(b) plans, the organization has created a comprehensive retirement educational program that is available to school districts and their employees across the United States.

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The NTSA educational program is delivered through NTSA-certified retirement education specialist advisers. The program is designed to be vendor-neutral and does not include any specific investment product recommendations.

“Attendees of the program gain a greater awareness of what they will need to save to supplement their pension plan and Social Security and how to take action,” Neese says. “Many educators do not have access to Social Security, and reforms in state retirement systems are reducing retirement benefits. Therefore, for school district employees, the importance of personal savings in 403(b) plans is more critical to their retirement security than ever.”

According to NTSA, in order to deliver the program, a certified retirement education specialist must have completed a certificate program through the American Retirement Association (ARA) Retirement Planning Academy, focused on the important retirement planning considerations of public employees. Additionally, NTSA says, the specialists must have agreed to abide by the “highest standards of professional conduct” and to coordinate all educational activity in accordance with school district solicitation policies and guidelines.

More information is available at https://ntsa-cres.org/.

Compliance February 26, 2019

IRS Asks for Comments Regarding 403(b) Plan Auto Enrollment

The request regards information collection for Revenue Ruling 2000-35, which describes certain criteria that must be met before an employee's compensation can be reduced and contributed to an employee's section 403(b) plan in the absence of an affirmative election by the employee.

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The IRS is inviting the general public and other Federal agencies to comment on proposed and/or continuing information collections concerning Revenue Ruling 2000-35, Automatic Enrollment in Section 403(b) Plans.

According to the agency’s request, Revenue Ruling 2000-35 describes certain criteria that must be met before an employee’s compensation can be reduced and contributed to an employee’s section 403(b) plan in the absence of an affirmative election by the employee.

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Comments are invited on:

  • Whether the collection of information is necessary for the proper performance of the functions of the agency, including whether the information shall have practical utility;
  • The accuracy of the agency’s estimate of the burden of the collection of information;
  • Ways to enhance the quality, utility, and clarity of the information to be collected;
  • Ways to minimize the burden of the collection of information on respondents, including through the use of automated collection techniques or other forms of information technology; and
  • Estimates of capital or start-up costs and costs of operation, maintenance, and purchase of services to provide information.
More information is found in the Federal Register.

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