McArty, 012180 MSAGO, 19800121
|Case Date:||January 21, 1980|
The undersigned represents the Mississippi Regional Housing Authority No. VI. Harold Duck, Executive Director, has requested that I write you concerning the following matter. Under date of July 10, 1978, you wrote a letter to F. M. Walker, Executive Secretary, Public Employees' Retirement System, a copy of which is enclosed and attached as Exhibit 1 to Appendix B, stating that there is no statutory authority for a housing authority to enter into a contract with an insurance company to provide retirement benefits for employees. Consequently, the TSA plan that the Mississippi Regional Housing Authority No. VI had was terminated in February, 1979. The Housing Authority wants to provide retirement benefits for its employees without becoming a member of the State Retirement System. This letter is to request an opinion concerning the statutory authority for a housing authority to make contributions to a Simplified Employee Pension. Because the Mississippi Regional Housing Authority No. VI has not made the election mentioned in Miss. Code Ann. Section 25-11-103 (v) (Supp. 1978) pursuant to Miss. Code Ann. Section 25-11-105 (j) (1972), and because the Housing Authority is financed entirely by federal funds, the Housing Authority is not required to participate in the Public Employees' Retirement System of Mississippi. According to the aforementioned Attorney General's opinion, the Housing Authority cannot contract with an entity to provide retirement benefits for its employees. For your information enclosed as Appendix A is Form 5305-SEP which explains the primary provisions of a Simplified Employee Pension. By letter dated July 20, 1979, a copy of which is attached as Appendix B, a Request for a Ruling or Determination Letter was transmitted to the IRS. Pursuant to that Request, on August 6, 1979 an oral ruling was given to the undersigned wherein the IRS ruled that the contract setting up a Simplified Employee Pension Plan was between a depository institution and each...
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