Date: May 5, 2008
To: All 403(b) Participants
From: Human Resources Department
Subject: Optional Retirement Plan (ORP) and Voluntary Tax Sheltered Accounts (TSA) 403(b) Program
The Texas Higher Education Coordinating Board requires public universities to recertify their ORP and TSA vendors every three to five years. This requirement along with new IRS regulations that affect the responsibilities of 403(b) plan sponsors, require UNT Denton (UNT) and UNT Health Science Center (UNTHSC) to change the administration of our 403(b) plan. The deadline for completing this project is rapidly approaching. Over the next few months, UNT and the UNTHSC will partner to contract with an outside consulting service to evaluate our current 403 (b) program and recommend needed changes. During this process, it is the goal of UNT and UNT Health Science Center Human Resources Departments to consolidate their respective 403(b) TSA and ORP program into a System wide retirement program. This would involve utilizing the same program rules, vendor list, education programs, documents and website.
PURPOSE OF PROJECT
The purpose of project is not only to ensure compliance with federal 403(b) requirements but also to provide our employees with the best available retirement program. Part of this project is likely to require that we narrow the list of authorized 403(b) vendors. In narrowing the vendor list to only those vendors who can provide the best products, services, investment education and fee structures, our ORP and TSA participants will benefit. The project will also allow for enhanced administration of the plan and ensure compliance with Texas Higher Education Coordinating Board requirements.
WHAT DO I NEED TO KNOW?
One of the results of this process is that we will most likely be reducing the number of authorized TSA and ORP vendors. We are expecting to identify the newly authorized vendors by September 1, 2008. Should your current vendor no longer be authorized, you will be required to select a new vendor from the approved list of vendors.
We will keep you informed as this important project proceeds.