Universal Availability
Plan sponsors that allow employees to make elective deferrals to the 403(b) plan are required to allow all employees the same option,with limited exceptions.
Here are some key features of this regulation:
| • | Applies to all 403(b) plans - ERISA and non-ERISA. |
| • | Eligible employees are individuals who perform services as an employee. |
| • | Independent contractors,leased employees and board members are ineligible employees. |
| • | Employees who work 20 hours or more each week are included. |
| • | New employees who are expected to work 1,000 hours or more in the first year of service or current employees who worked 1,000 hours or more in the preceding year are included. |
| • | All eligible employee must have an “effective opportunity”to participate. |
| • | Periodic communications regarding 403(b) plan availability required. |