2021: Quarter 2 Newsletter
Protecting Your Plan’s Confidential Data
When sending information that may include Personally Identifiable Information (PPI) or Personal Health Information (PHI), AFPlanServ helps ensure that your data is protected by using secure options. For this reason, we prefer to send documents and correspondence to you via secure email rather than by other unsecure methods.
A secure email allows us to verify that you receive the requested confidential information and prevents it from being left in an unsecure environment when received. AFPlanServ uses Proofpoint secure email to send confidential information. You will be required to enter your information, create a password, and answer some security questions for the email to be displayed. If you need assistance setting up a Proofpoint login, please contact us.
AFPlanServ can continue to fax documents, but please be aware that they may be left unattended on a fax machine where unauthorized people may view them. If you prefer, documents may also be sent via paper mail.
Did you know?
Maintaining a compliant 403(b) Plan requires that you, the Plan Sponsor, and AFPlanServ work together to ensure all aspects of Plan administration are handled properly. Without your cooperation, it becomes very difficult to provide accurate administrative services.
Billing Reminder
If you elected to pay the AFPlanServ administrative fee (per the Administrative Service Agreement), the payment of fees is required for our administrative services to be provided to your Plan.
The fee applies to all employees who maintain a balance in their 403(b) account, regardless of their employment or contribution status. A payment-in-full is required.
Payment of all AFPlanServ fee invoices is due within 30 days from the date the invoice is received unless other arrangements have been approved. Please send either a copy of the invoice with your payment or reference the invoice number on your check. This helps us ensure that your payment is credited correctly.
You do have the option to pass the administrative service fees on to your Investment Providers, however this would become a condition of remaining an approved Provider of your Plan. If a Provider declines to pay the fee, to avoid losing them as an approved Provider, you may pay their fee yourself as originally selected.
If you would like to pass the cost of administrative service fees on to your Investment Providers, have questions, or notice any discrepancies with your invoice, please contact AFPlanServ.
Plan Documents
403(b) and 457(b) Plan documents consist of all the initial documents that collectively make up your written Plan. These documents describe the available features, eligibility, rules, and operational guidelines.
Your Plan must maintain compliance with Internal Revenue Code Section 403(b) and/or Code Section 457(b), as well as other applicable rules or regulations by the Internal Revenue Service.
When your Plan and our Administrative Services were established, you received a binder containing copies of your Plan documents. These documents include, but are not limited to:
- AFPlanServ Volume Submitter Plan Document
- Administrative Services Agreement
- Investment Provider Agreement for Retirement Plans
- Employee Eligibility Communication Records
If you are unable to locate your binder, please contact AFPlanServ to request a new one.
Frequently Asked Questions
Q: Can a participant contribute to a 403(b) and a 457(b) at the same time?
A: Yes. The 403(b) and 457(b) limits are not aggregated. Therefore, an employee may simultaneously contribute the standard limit of $19,500 (or $26,000 if over the age of 50) to each plan if their compensation allows.
Q: May a participant start, stop or change a deduction without a Salary Reduction Agreement (SRA)?
A: No. An SRA must be completed by a participant whenever they elect to start, stop or change their 403(b) or 457(b) contribution. An employer may not process a contribution change without a properly executed, signed and approved SRA.
Plan Reminders
Each year, AFPlanServ provides a Sample Eligibility Notice to help satisfy the Universal Availability requirements.
You may use it as a template for your custom notification or distribute the sample in its entirety.
Please check the Operational Guidelines to ensure you are adhering to the items listed. If you have any questions, please contact us.
If you need more information about your role as the Plan Sponsor, we're happy to help!