Data Mining
403(b) plans learn the language of recordkeeping
RECORDKEEPING—potentially, the
most commonly used word in the
retirement industry—is something
new to non-ERISA 403(b) plans. The
preregulation world of non-ERISA
403(b)s, left participants to their
own devices to navigate the multiple
vendors providing independent
investment contracts to participants,
meaning 403(b) plan sponsors now
have the challenging transition of
finding compliant recordkeeping
solutions.
A 403(b) plan sponsor with
employees in multiple locations
has to send deferral data for each
participant in each location to the
vendors who provide the participants’
investments. Many participants
also have investments with multiple
vendors, and each vendor can have
multiple contracts with a participant,
with different rules for submission,
explains Natalie Wyatt, sales
consultant for wealth management at
SunGard. Soon, a plan sponsor ends up
with a data split that branches out like
a multigenerational family tree.
