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[January 12, 2006]
A revised 403(b) Plan Summary Plan Description (link to a pdf of SPD) is now available. The revised publication reflects service enhancements that were implemented as part of the transition to a new recordkeeping arrangement with Fidelity Investments Tax-Exempt Services Company (FITSCO).
Following are highlights of plan changes:
Investment Options
The revised plans reflect the new investment options now available to participants, as well as daily valuation of the UC Funds. Participant transactions are no longer limited by monthly valuation processing cycles.
Rollovers into the Plans
Rollover provisions have been expanded to allow participants to roll over eligible monies into the UC Retirement Savings Program from traditional individual retirement accounts (IRAs) and after-tax employer plans. After-tax rollovers are only allowed from like plans—for example, after-tax rollovers from another employer 403(b) Plan may only be directed to the UC 403(b) Plan. The new rollover provisions also allow participants who are no longer employed at UC to roll over eligible monies into the plans.
403(b) Plan Loans
For loans initiated after July 1, 2005, new processing deadlines, fees, interest rates and restrictions on re-financing apply. Participant balances in the DC and 457(b) Plans may be used to determine the amount available for a 403(b) Plan loan. Participants may now continue to repay loans after employment through electronic funds transfer.
Hardship Distributions and Unforeseeable Emergency Withdrawals
Participants are not allowed to make voluntary contributions to the 403(b), 457(b) and DC Plans for six months following a 403(b) Plan Hardship Distribution and/or a 457(b) Plan Unforeseeable Emergency Withdrawal.
More information about the transition to FITSCO is available online.