The OMNI Group

The OMNI Group NEWS

The OMNI Group Headlines:

The IRS Announces Pension Plan Limitations for 2010
  • The IRS has just distributed the following notification that the limits for 2010 pension plan contributions, benefits, and compensation definitions are unchanged for 2010.
  • Note that the AGI limits for low income tax credit eligibility and both deductible and Roth IRA contribution eligibility increased slightly in certain categories.
  • Link to the IRS Announcement click here
  • NTSAA's 403(b) MarketBeat Newsletter click here

OMNI Announces Online Transactions!
  • You asked, we listened! In light of overwhelming interest on behalf of employers across the country, OMNI is pleased to announce the rollout of Online Transactions, beginning in mid-April. Going forward, employees will be able to make changes to their fund company/deduction, request a loan, and even initiate a Hardship Distribution- all online! Interested in making a transaction? Simply select your employer’s home page. At the top of the page you will notice several new options:
    • Online SRA
    • Online Hardship Request Form
    • Online Loan Request Form

  • Each of these links will take you to an online form; which happens to look very similar to the paperwork you may already be familiar with. Complete ALL fields as directed, confirm your information, provide an electronic signature, and hit submit- you’re done!
  • What really makes online transactions exciting are the immediate results you'll see. For example: If you are changing your deduction amount, you will automatically receive an e-mail confirming that your change has been received by OMNI- no more wondering if a fax has been received or worrying about when to expect your change to become effective.
  • Anything that would normally require a paper SRA, can now be completed online. You will be able to start contributions, change your deduction amount or fund company, even set up a special one-time contribution.
  • Loan and Hardships are a bit more complex. Obviously, we can't give instantaneous confirmation, but we can give you a tracking number - and the ability to follow your loan throughout the approval process. As always, our Dedicated Customer Care Unit is fully available to address any questions that might arise during the switch over to Online Forms.

IRS Issues Delay in 403(b) Written Plan Document
  • IRS Issues Delay in 403(b) Written Plan Document and Operational Transition Relief for 2009 – with Strings Attached So Employers Should Continue to Work to Bring Plans into Compliance.

  • The IRS has announced the issuance of a new Notice 2009-3: Relief From Immediate Compliance with 2009 Section 403(b) Written Plan Requirement (the “Notice”). It provides some helpful transition relief under the final IRS 403(b) regulations.
  • Below are some general guidelines from OMNI on how to apply the Notice.

    The Notice does two main things:

    1. Delays the adoption of the written plan requirement one year to December 31, 2009; and

    2. Allows a plan sponsor to operate its 403(b) plan (“Plan”) during 2009 in accordance with a "reasonable interpretation" of § 403(b), taking into account the final regulations, provided that, before the end of 2009, the sponsor makes its "best efforts" to retroactively correct any operational failure during the 2009 calendar year to conform to the terms of Plan (such correction to be based on the general principles of correction set forth in the IRS Employee Plans Compliance Resolution System (EPCRS) ).

    Most importantly, though the Notice does provide some relief, it does NOT delay the actual effective date of the regulations. We at OMNI emphasize the words “Relief From Immediate Compliance” in the title of the Notice. That is to say, the requirement of having to comply with the final regulations in operation beginning in 2009 has NOT changed. The Notice essentially only assists you if you make a reasonable mistake implementing the final regulations in 2009 AND MAKE BEST EFFORTS TO CORRECT IT in 2009. A point worth mentioning: The Notice functions under the standards of a “reasonable" interpretation of 403(b) in light of the final regulations, and “best efforts” to make any necessary corrections in 2009.

    Neither of those concepts is defined by the IRS. We may not know specifically what actions are included under those standards, but we can state with certainty what they do not include: “DOING NOTHING”.

    • RECOMMENDED NEXT STEPS:

    OMNI recommends that you:


    • STAY THE COURSE
    • Remain PROACTIVE in adopting your Plan as soon as possible, and putting your Plan in place, so that in the upcoming year you can benefit from not only having a Plan, but also have the time (provided by the Notice) to determine what may not be correct in your operations, so that you can take the right steps to make the appropriate modifications. If you do not have a Plan in place, you cannot be certain of the terms of your Plan, the potential problems with the Plan and/or with your operations as regards the Plan, and what aspects may require corrective measures. By doing nothing, you may be wasting precious time provided by the IRS.
    • PLEASE NOTE THAT DOING NOTHING WILL NOT SATISFY THE REASONABLE, OR BEST EFFORTS STANDARDS of the Notice. To satisfy those, you should be able to show reasonable diligence in trying to comply with 403(b) in operation and taking corrective measures to bring your Plan into compliance..

    We thank you for your patience throughout the last year, and would like to assure you that all you have accomplished with respect to your Plan has been worth while, and necessary. The Notice does NOT change any of that.

    As always, please do not hesitate to contact your Compliance Specialist at OMNI with any further questions or concerns.

    All of us at OMNI wish you a great holiday season, and a very happy new year.

Salary Reduction Agreement (SRA)
  • Our employees are committed to prompt and accurate processing for our customers. By filling out this agreement completely, you will assist us in meeting our goal of processing your request in a timely manner.
  • If you have any questions, see if you can find them in the FAQ section of our website.
  • SRA Form

Funds with Signed ISAs
  • The following Service Providers have signed an Information Sharing Agreement with The OMNI Group. Please check back frequently as this list will be updated routinely.
  • When selecting a service provider, employees should refer to the participating service provider list under their district's name.
403(b) LIMITS for 2009 and 2010
  • The following are the dollar limits for the year 2009 and 2010, as per the Economic Growth and Tax Relief Reconciliation Act of 2001:
    • The elective deferral limit for an individual’s 403(b) contribution is increased to the lesser of 100% of salary or $16,500 in 2009.
    • Individual’s age 50 or older will be permitted to make an “additional” contribution above and beyond the statutory limit. The elective deferral limit for these individuals 403(b) contribution is the lesser of 100% of salary or $22,000 in 2009 (same for 2010).
    • The $3,000 per year Catch-up Provision for employees remains the same when meeting these conditions:
      • 15 or more years of service within the current school district
      • The employee has NOT averaged over $5,000 per year of elective deferrals
      • The lifetime cumulative catch-up allowed remains $15,000

  • LIMITS Chart
  • click here for a downloadable pdf document.
  • Contact us if there are any questions about the 2009 or 2010 limits.

IRS Releases Final 403b Regs
  • The IRS released Finalized 403(b) Regulations Monday, July 23, 2007. The regulations were released with an effective date of July 26, 2007 and an applicable date for tax years beginning after December 31, 2008.
  • To clarify the applicable date is the key date of focus. The regulations and changes brought about by them will need to be in place January 1, 2009. There are several exceptions within the regulations that will have later applicable dates.
  • There will be those offering well-meaning advice. As the district’s Compliance Specialist OMNI is your guide so that your district’s plan will be in compliance with the regulations that become applicable January 1, 2009 and beyond.
  • Please do not hesitate to contact OMNI, 877-544-6664, with any questions, concerns or suggestions you may have.
  • View the final regulations.

IRS Expands Universal Availability Program Throughout U.S.
  • The Internal Revenue Service announced on June 21st that it is expanding its outreach effort to ensure that public schools throughout the United States are complying with the universal availability requirement for retirement annuities they may offer.
  • read the IRS announcement.

Proposed 403(b) Regulations released by the IRS
  • The IRS has released for the first time in over 40 years proposed regulations regarding 403(b) plans. The proposed regulations will be undergoing a comment period that could last between twelve to eighteen months before any regulation becomes finalized.
  • The OMNI Group will continue to follow the progression of these regulations and be available to offer comment and guidance when necessary.
  • read the proposed regulations.

Proposed 403(b) Regulations Update
  • As they say: “No news is good news,” which is the case regarding the 403(b) regulations proposed in November 2004. When the regulations were released they were done so with a target effective date of January 1, 2006.
  • To reach that point the IRS/Treasury Departments first have to move the regulations from a state of Proposed Regulation to Finalized Regulations, this has not occurred. The new target effective date from the IRS/Treasury Departments is January 1, 2008, based on a tentative release of the Finalized Regulations during the second quarter of 2007.
  • OMNI has seen and heard of communication being forwarded over the months to districts, mostly by investment providers. The regulations in their current state are not to be relied on. Any communication stating otherwise is strictly speculation or opinion.
  • The role of OMNI, as your Compliance Specialist, is to supply the district with news to be acted on and not speculation. You can be assured that, when actionable news occurs regarding the 403(b) regulations, we will be the first to notify you and have an action plan in place so that the district’s 403(b) administration can move forward under the new regulations.
  • The OMNI Group is available toll free at 1-877-544-6664 for any questions regarding 403(b) plans and your district.

With The OMNI Group, you can be confident that whenever plan administration solutions need to be created, now or in the future, we intend to be the first and the best.

The OMNI Group—listens, leads, delivers.