Regulation and Oversight of 403(b) Plans

In addition to the Department of Labor’s Employee Benefits Security Administration, a number of federal and state agencies have a role in regulating and overseeing 403(b) plans or investment options provided to participants. Specifically: 

• The IRS administers the Internal Revenue Code (IRC), including provisions related to 403(b) retirement plans. 
• The Securities and Exchange Commission administers and enforces federal securities laws and regulations that govern the sales and marketing of variable annuities, mutual funds, and certain other investment products in part through Regulation Best Interest. This regulation establishes a standard of conduct for brokers or dealers who provide recommendations regarding securities, investment strategies for securities, and other investment products used to fund 403(b) plans. 
• State insurance commissioners administer and enforce state regulations regarding fixed, variable, and indexed annuities that may be offered in 403(b) plans. In addition, State Insurance Commissioners may be in charge of administering and enforcing individual state laws for 403(b) plans sponsored by a state, subdivision, or instrumentality thereof covering employees of publicsupported schools.