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.
- 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)
- Vendor consolidation
- Participant advocacy
Key Employer Duties
- Maintain written plan documents
- Monitor contribution limits
- Ensure compliance with rules for participant loans
- Vendor Consolidation — Less is more. School districts who move to a single vendor can reduce both fees and administrative burden.
- Rich Plan, Poor Plan — Public school 403(b) plans poor fairly when compared to the 401(k). Read more.
- What's That Fishy Smell in the Teachers' Lounge? — Teachers pick up the tab when sales agents bring the lunch. Read more.
- Union Advice is Failing Teachers — Labor groups have joined forces with investment firms to steer members into savings plans that often have high expenses and poor returns. Read more.
- 403(b) Plan Trends and Best Practices — The ongoing evolution of the 403(b) plan marketplace. Read more.
403(b)wise Will Help Educate Your Employees
- Video conferences
- In person presentations
- Email us and let us know how we can help you