PLANADVISER - September/October 2022 - 32
beyond 401(k) / 403(b) plans
Reg BI's Impact on 403(b)s
A
How the regulation applies can be nothing short of complicated
lthough 403(b) plans have similarities
to 401(k) plans, there are
significant differences when it
comes to applying the Securities and
Exchange Commission's Regulation
Best
Interest. Those differences stem
from the division of 403(b)s into ERISA
[Employee Retirement Income Security
Act] plans and non-ERISA plans.
According to a March report from
the Government Accountability Office
(see sidebar), ERISA plans held 57% of
the estimated $1.1 trillion in 403(b)
assets as of year-end 2020.
Most private-sector tax-exempt
organizations' 403(b)s are subject to
ERISA. Still, these plans may operate
as non-ERISA, provided they meet two
conditions. First, the plan's contributions
must come solely from employee
contributions. Second, the plan must
qualify for a limited employer involvement
safe harbor, which prohibits
contributions by the employer and
limits its involvement with the plan.
Public K-12 schools, colleges and
universities, and certain religious institutions
and
affiliated organizations
such as hospitals and universities, are
generally not subject to ERISA, though
religious organizations' plans may elect
ERISA coverage and its requirements.
ERISA status influences how advisers
interact with a 403(b) plan. In the plans
that are subject to ERISA, the adviser
works with the plan sponsor, and the
relationship looks much like one with a
401(k) sponsor. Advisers' service of nonERISA
plans has traditionally taken a
different approach. In those instances,
sponsors often have had little involvement
with the plan: The providers and
advisers secured relationships with the
individual participants.
Historically, for one example of
how this worked, the various departments
of a school district might have
each maintained a list of approved
403(b) vendors authorized to enroll that
group of employees into their products.
Advisers, many of whom were selling
32 | planadviser.com September-October 2022
Art by Anja Sušanj
http://www.planadviser.com
PLANADVISER - September/October 2022
Table of Contents for the Digital Edition of PLANADVISER - September/October 2022
The Possibilities Ahead
The Full Potential
2022 PLANADVISER National Conference
NQDC Investment Menus
Reg BI’s Impact on 403(b)s
PEPs’ Slow Growth
Scaling for the Future
Rollover Rules for 457(b) Plans
Jorge Bernal
PLANADVISER - September/October 2022 - Cover1
PLANADVISER - September/October 2022 - Cover2
PLANADVISER - September/October 2022 - 1
PLANADVISER - September/October 2022 - 2
PLANADVISER - September/October 2022 - 3
PLANADVISER - September/October 2022 - 4
PLANADVISER - September/October 2022 - 5
PLANADVISER - September/October 2022 - 6
PLANADVISER - September/October 2022 - 7
PLANADVISER - September/October 2022 - 8
PLANADVISER - September/October 2022 - 9
PLANADVISER - September/October 2022 - 10
PLANADVISER - September/October 2022 - 11
PLANADVISER - September/October 2022 - 12
PLANADVISER - September/October 2022 - 13
PLANADVISER - September/October 2022 - 14
PLANADVISER - September/October 2022 - 15
PLANADVISER - September/October 2022 - The Possibilities Ahead
PLANADVISER - September/October 2022 - 17
PLANADVISER - September/October 2022 - 18
PLANADVISER - September/October 2022 - 19
PLANADVISER - September/October 2022 - 20
PLANADVISER - September/October 2022 - 21
PLANADVISER - September/October 2022 - The Full Potential
PLANADVISER - September/October 2022 - 23
PLANADVISER - September/October 2022 - 24
PLANADVISER - September/October 2022 - 25
PLANADVISER - September/October 2022 - 2022 PLANADVISER National Conference
PLANADVISER - September/October 2022 - 27
PLANADVISER - September/October 2022 - 28
PLANADVISER - September/October 2022 - 29
PLANADVISER - September/October 2022 - NQDC Investment Menus
PLANADVISER - September/October 2022 - 31
PLANADVISER - September/October 2022 - Reg BI’s Impact on 403(b)s
PLANADVISER - September/October 2022 - 33
PLANADVISER - September/October 2022 - PEPs’ Slow Growth
PLANADVISER - September/October 2022 - 35
PLANADVISER - September/October 2022 - Scaling for the Future
PLANADVISER - September/October 2022 - 37
PLANADVISER - September/October 2022 - 38
PLANADVISER - September/October 2022 - Rollover Rules for 457(b) Plans
PLANADVISER - September/October 2022 - Jorge Bernal
PLANADVISER - September/October 2022 - Cover3
PLANADVISER - September/October 2022 - Cover4
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