CalSTRS Offers New IRS Compliance Service for School Districts
Full Disclosure: Scott Dauenhauer worked as a consultant during the RFP process.
SACRAMENTO, CA – The California State Teachers' Retirement System (CalSTRS) is launching a new program to assist school districts, county offices of education and community college districts in complying with new Internal Revenue Service regulations regarding 403(b) supplemental retirement savings plans.
"CalSTRS' relationship with teachers and school districts and its reputation for fiduciary integrity make it uniquely positioned to fill the need for a compliance program that employers can trust," CalSTRS Chief Executive Officer Jack Ehnes said. "This new strategic alliance will fill a void in the marketplace."
School districts are facing increased compliance responsibilities, including providing more hands-on administration of the plans they offer and providing a higher level of accountability. The new IRS regulations become effective January 1, 2008.
CalSTRS will offer administration and compliance services on a low-cost basis as a solution for employers who may not have the financial resources, additional staff, or technology to comply with the new regulations.
CalSTRS has selected The Omni Group as its partner in the new program. Omni is an independent compliance provider with experience working with hundreds of public school districts around the nation.
About CalSTRS: With a $171 billion investment portfolio, the California State Teachers' Retirement System is the second-largest public pension fund in the United States. It administers retirement, disability and survivor benefits for California's 795,000 public school educators and their families from the state's 1,400 school districts, county offices of education and community college districts.
About The Omni Group: The Omni Group specializes in the administration of public school districts' supplemental retirement savings programs by providing IRS compliance and remittance services. It is the first such provider of its kind and serves 700 employers in 15 states, administering compensation programs for 170,000 employees.
Scott Dauenhauer CFP, MSFP, AIF