Changes made to employee retirement plan
To comply with IRS and Department of Labor provisions, the Retirement Plan Committee has adopted changes to the OLLU employee retirement plan, effective June 2020. Most participants will not experience any changes in their retirement plan. However, all participants will receive a formal document, informing them of the changes made to meet federal regulations. Here is the information:
This notice is to inform Plan Participants about some changes to OLLU’s retirement plan.
To ensure that the best interests of OLLU retirement plan participants are met and to safeguard compliance with IRS and Department of Labor provisions, the Retirement Plan Committee completed a lengthy process, as part of our due diligence, on the retirement plan over the past 12 months. This review included having legal counsel examine the plan for compliance. In light of this review, the following changes were made over the summer to the Plan.
- A new Plan Document was adopted effective June 30, 2020. While the current plan document was adequate, adopting this plan allowed for some operational efficiencies that will make Plan administration easier.
- Elective Deferrals are the additional funds you have elected to contribute to the retirement plan over the mandatory 3%.
- Effective Aug. 1, 2020, elective deferrals will be open to ANY employee who is at least 21 years of age.
To enroll in an elective deferral, employees need to set up an account with Transamerica.
The majority of participants will not experience any changes in your retirement plan experience as a result of these changes. This communication as well as others you may receive on this matter are important in order to keep you informed of the plan’s terms and operations. Participants will also receive a more formal document, either a Summary Plan Description or a Summary of Material Modifications, describing the changes to the plan which are necessary to meet regulatory requirements. If you have any questions, contact Diana Ramos, OLLU Employee Benefits and Wellness Programs Manager at firstname.lastname@example.org or by phone at 210-434-6711 ext. 3970.
Phillip J. Vargas, Plan Administrator
on behalf of OLLU Retirement Plan Committee