457(b) Deferred Compensation Retirement Plan
In 2002, OASBO developed a 457(b) Deferred Compensation Retirement Plan and selected ING - now Voya Financial Advisors (Voya) - to be the investment provider for the Plan using an RFP process. In 2017, OASBO restated the plan to add AXA Advisors - now Equitable - as an investment provider for the Plan. Participating employers can now choose Voya, Eqitable, or both as investment providers for the Plan.
The intent is to keep every district from having to develop a plan document and having to go through a process to select a provider. The plan is designed to be a high-service model that provides service not only to the district treasurer but also to the individual employees who enroll into the plan.
Employees have many questions regarding retirement and whether they are fully prepared to take the leap. They are concerned as to whether their state retirement plan will be enough, should they contribute to a supplemental plan, how do they get started, how do they pick a provider, etc.
Treasurers oftentimes do not want to get involved in individual employee decisions and want to know that there is somewhere to point them for educational information. This is an opportunity to have a place they can go for assistance.
On December 7, 2022, the OASBO eNews reminded you of the importance of keeping your school district’s 457 plan documents up-to-date in order to remain in compliance with state and federal laws.
Since that reminder, SECURE 2.0 Act of 2022, a part of the Consolidated Appropriations Act, 2023, was signed into law on December 29,2022. SECURE 2.0 extends the deadline for a governmental employer (including a public school) to amend its retirement plan documents for SECURE, CARES, and SECURE 2.0 until the end of the 2027 plan year (unless the IRS subsequently provides for a later plan amendment deadline).
We anticipate that the IRS will be issuing additional guidance that would be leveraged in the OASBO 457 Plan Document being amended by the SECURE 2.0 deadline. OASBO will be closely monitoring this situation and will be updating its members about when the OASBO 457 plan document has been revised and is ready for adoption by a school district.
To learn more about OASBO’s dedicated 457(b) plan you can visit Voya's website by clicking here and/or Equitable's website by clicking here.
Click here and log in for new plan documents and a sample board resolution.
**An attorney should be contacted for advice on or review of the contract associated with a Benchmark Program**