403bwise is a 501(c)(3) nonprofit organization.

The K-12 403(b) is broken.
Together we can fix it.
Advocacy

Employer Information

New regulations that went into full effect on January 1, 2010 have greatly increased employer involvement in public 403(b) plans. Wise employers realize the new regulations shift power from the financial industry and to the employer. Consult our information and resources to help use this power to craft a plan that is not only in compliance, but offers quality, reasonably priced products worthy of your most vital asset: your employees.

Key Issues

  • Lack of objective participant education (bad)
  • Allow employees to choose % amount contribution option (good) over $ amount contribution option (not so good)
  • Poor investment choices (very bad)
  • Single vendor (good) vs. multi vendor (bad)
  • Individual contracts (bad) vs. Group contracts (good)
  • Sales agents trawling staff lounges and classrooms (very bad)
  • Plan compliance (good)
  • Union revenue arrangements with vendors (bad)
  • Permitting financial firms to provide financial "education," often at new teacher events (very bad)

Key Trends

  • Vendor consolidation
  • Participant advocacy

Key Employer Duties

  • Maintain written plan documents
  • Monitor contribution limits
  • Ensure compliance with rules for participant loans

Must Reads

403(b)wise Will Help Educate Your Employees

  • Video conferences
  • In person presentations
  • Email us and let us know how we can help you