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<p class=MsoTitle><st1:place w:st="on"><st1:PlaceName w:st="on"><b><font
size=4 face="Century Schoolbook"><span style='font-size:14.0pt'>Oklahoma</span></font></b></st1:PlaceName>
<st1:PlaceType w:st="on">State</st1:PlaceType></st1:place> Regents for Higher
Education</p>
<p class=MsoNormal><font size=2 face="Century Schoolbook"><span
style='font-size:11.0pt;font-family:"Century Schoolbook"'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 face="Century Schoolbook"><span
style='font-size:11.0pt;font-family:"Century Schoolbook"'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 face="Century Schoolbook"><span
style='font-size:11.0pt;font-family:"Century Schoolbook"'><o:p> </o:p></span></font></p>
<h1><b><font size=4 face="Century Schoolbook"><span style='font-size:14.0pt'>MEMORANDUM</span></font></b></h1>
<p class=MsoNormal><font size=2 face="Century Schoolbook"><span
style='font-size:11.0pt;font-family:"Century Schoolbook"'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 face="Century Schoolbook"><span
style='font-size:11.0pt;font-family:"Century Schoolbook"'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 face="Century Schoolbook"><span
style='font-size:11.0pt;font-family:"Century Schoolbook"'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 face="Century Schoolbook"><span
style='font-size:11.0pt;font-family:"Century Schoolbook"'>To: </span></font><font
size=2><span style='font-size:11.0pt'>Presidents Council<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face="Times New Roman"><span style='font-size:
11.0pt'> Council of Business Officers<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face="Times New Roman"><span style='font-size:
11.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 face="Times New Roman"><span style='font-size:
11.0pt'>From: Amanda Paliotta<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face="Times New Roman"><span style='font-size:
11.0pt'> </span></font><font size=2><span style='font-size:11.0pt'><o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face="Times New Roman"><span style='font-size:
11.0pt'>Date: June 16, 2008<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face="Times New Roman"><span style='font-size:
11.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 face="Times New Roman"><span style='font-size:
11.0pt'>Re: 403(b) Plans<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face="Times New Roman"><span style='font-size:
11.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal><b><font size=2 face="Times New Roman"><span
style='font-size:11.0pt;font-weight:bold'>______________________________________________________________________________<o:p></o:p></span></font></b></p>
<p class=MsoNormal><font size=2 face="Times New Roman"><span style='font-size:
11.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'>As you know, a 403(b) Task Force was convened in March, 2008. The Task
Force consisted of business officers from various institutions representing all
tiers of the State System. The Task Force was convened for the purpose of
addressing issues raised by new federal 403(b) regulations and by a proposed
change in state law regarding 403(b) vendors (the legislation regarding the
proposed change was passed by the Legislature in May and signed by the Governor
in June). </span></font></p>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'> The Task Force met several times, and was advised by
attorneys from the law firm of McAfee & Taft. The Task force was moving
forward with a proposal that the State Regents (through a competitive bidding
process where appropriate) create a plan document, establish a list of approved
vendors, and provide for record-keeping and other administrative services, and
that the institutions then voluntarily participate in this " master 403(b)
plan" on a cost-sharing basis. It was the opinion of the Task Force that
this proposal would allow the State Regents and the institutions that chose to
participate to obtain efficiencies of scale, and better bids from potential
vendors and service providers, with respect to allowing their employees to
participate in 403(b) plans. </span></font></p>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'> As details of the master 403(b) plan proposal were
discussed within the Task Force and presented to the State Regents, the general
issue of liability arose for the State Regents with respect to their actions
regarding the “Master Plan”, and whether such actions would be
protected under the Oklahoma Governmental Tort Claims Act (OCTCA). In an
effort to resolve these issues, a series of questions were submitted to the
Attorney General's Office. In the advisory letter in response to these
questions, the Attorney General's Office states that the State Regents do not
have the authority to establish a master 403(b) plan, and therefore, would not
be protected by OGTCA. For that reason, the master 403(b) plan proposal cannot
go forward. Each institution should consult with their legal and human
resource advisors to determine options that will be available for your
individual 403(b) plans.</span></font></p>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'>The State Regents made a meaningful effort to try to provide a master
plan on an efficient and economical basis for institutions and their employees.
We regret that we are not able to move forward because of the potential for
additional liability it might impose on the State Regents. The Task Force will
continue to meet to discuss issues and concerns that institutions may have as
they implement the new IRS rules. </span></font></p>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'>Please don’t hesitate to contact me if you have any questions.</span></font></p>
<p class=MsoNormal><font size=2 face="Times New Roman"><span style='font-size:
11.0pt'><o:p> </o:p></span></font></p>
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