The DOL’s release of FAB 2009-2 may well more significant than I took at first glance. Soon after blogging on the release of the FAB and how it sets us up to develop a more permanent solution, Ellie Lowder and my colleagues Evan and Monica let me know of a different view: they believe that the relief only make sense if it applies to all years-as the data collection requirements in future years for those old contracts will only get worse, not better. The NTSAA has taken this position in a notice to their members.
The FAB itself is silent on the specifics of its application to future years, and it is clear that the DOL was focusing on the immediate problems posed by the 2009 Form 5500. But I’m now convinced after to talking to a number of colleagues that there is little reason to believe that this same reasoning will not apply to future years. Should this position hold sway, and I believe it will, this is a pretty incredible move on the part of the DOL . It addresses the most troubling of the new generation of 403(b) Title 1 issues.
The DOL’s Lisa Alexander and I will be talking about those other pressing 403(b) Title 1 issues at ASPPA’s “DOL Speaks” in Washington on September 14 and 15. Come join us!