THE UNIVERSITY OF NORTH CAROLINA  AT CHAPEL HILL
Office of the Associate Vice Chancellor for Human Resources		300 South Building, CB#.1000 Chapel Hill, NC 27599-1000 (919) 962-1554 FAX: (919) 962-8851

As you may be aware, the Office of Human Resources has been involved in an extensive review of our tax deferred annuity program at UNC-CH. This review has been based upon guidelines issued by UNC General Administration and by the Internal Revenue Service (IRS). A committee made up of UNC-CH faculty and staff participated in this review and advised staff of the Office of Human Resources.

In order to comply with these guidelines, we sent an agreement to all companies currently providing tax deferred annuities to University employees. This agreement was based upon a model provided by the Office of the President. Companies were invited to make comments that would be considered in preparation of a final document. Many companies did, in fact, have comments, and some of these were incorporated into the final agreement, which was sent out in December of last year.

This agreement contains several components, which are essential to an effective administration of a 403(b) plan. First, the companies must agree to provide accurate calculations of deferral allowances as required by IRS regulations. Second, the companies must agree to abide by the loan, hardship distribution and minimum distribution requirements established by the IRS. Third, the companies must agree to hold UNC-CH harmless should the company's (or its agents') errors result in IRS audits or penalties.

Fourteen companies agreed to these terms and signed the agreement. Nineteen companies refused to sign; twelve failed to respond, despite repeated contact by mail and phone. Subsequently, the University's tax deferred annuity committee approved the fourteen companies, and the Vice Chancellor for Finance and Administration signed these agreements.

The committee further decided that companies refusing to sign the agreement would no longer be eligible to receive deferrals from UNC-CH as of January 1, 2000. For that reason, your current deferrals to any company not appearing on the enclosed listing will cease at the end of the current tax year. If you wish to continue to participate in the UNC-CH 403(b) program, it will be necessary for you to contact one of the listed companies to enroll for the coming tax year. It will not be necessary for you to move the funds already in your account(s), unless you wish to do so. (Note: If you choose to move dollars previously invested, you are entitled to receive from the company a full disclosure of any company penalties or surrender charges.)

Meetings will be held on campus to explain the policy and provide information on the approved companies. These meetings are scheduled for Friday, October 29 at 2:00 and on Thursday, November 4 at 9:00. Both meetings will be in the Wilson Library Assembly Room. If you have questions about this new policy, or would like to learn more about it, please plan to attend one of these meetings.

We anticipate that by taking the measures explained above, we will have an improved 403(b) program, one that will serve both employees and the University well. We appreciate your cooperation in this matter. If you have questions, or if we can assist you with the transition to another tax-deferred annuity vendor, please contact our benefits office at 962-3071.

Enclosure

 

Company/Address	Phone#
CME Financial Services	919-929-0268
(for Resources Trust)
217 Providence Road
Chapel Hill, N.C. 27514
Lincoln Financial	1-919-932-7500
7330 Chapel Hill Road, Suite 102	1- 800-561-8682
Raleigh, N.C. 27607
Metropolitan Life Insurance Company	1-800-492-3553
2505 Meridian Parkway, Suite 150	1- 800-347-8176
Durham, N.C. 27713
Northern Life Insurance Company	1-800-426-7055
P.O. Box 12530
Seattle, Wa. 98111-9957
Prudential Insurance Company	1-800-458-6333
(including Medley Program)
P.O. Box 5410
Scranton, Pa. 18505
Security First Group	1-800-763-2838
2030-4 Thomasville Road, Suite #4
Tallahassee, Fl. 32312
TIAA-CREF	1-877-267-4505
The Concourse
1 Copley Parkway, Suite 400
Morrisville, N.C. 27560
VALIC	1-800-448-2542
2929 Allen Parkway
Houston, Tx. 77019
Western Reserve Life	1-800-851-9777
P.O. Box 5068
Clearwater, Fl. 33758-5068

 
 

Approved 403(b)(7) Companies
Company/Address	Phone#
Fidelity Investments	1-800-841-3363
82 Devonshire Street, MC2E
Boston, Ma. 02109-3614
Lincoln Investment Planning	1-800-242-1421
2015 Ivy Road, Suite 323
Charlottesville, Va. 22903
PFS Shareholders	1-800-544-5445
(First American)
3120 Breckinridge Boulevard
Duluth, Ga. 30099-0001
QUADS	1-800-435-7024
P.O. Box 200
Frederick, Md. 21705
Verity Investments	919-490-6717
3100 Tower Boulevard
808 University Tower
Durham, N.C. 27707

10/8/99