Joel L. Frank
Dec 30 2001, 10:38 PM
May a State or Local public employee pension fund operate a 457 plan?
Carol V. Calhoun
Dec 31 2001, 02:26 PM
The 457(B) trust fund cannot be part of a 401(a) pension fund. However, it is very common for a board of trustees of a state pension fund also to serve as the board of trustees of a statewide 457(B) plan, provided that applicable state law allows this. And in fact, if state law permits, the two plans can both invest in a group trust described in Rev. Rul 81-100, as modified by Code section 401(a)(25), if it is desired to have them invest as a unit. (Of course, you would want to look at state laws to determine whether the combined trust would be an appropriate investment for each of the participating plans.)
Joel L. Frank
Dec 31 2001, 08:12 PM
Carol----thank you very much for all you do.
Peace,
Joel L. Frank