Dear School District
June 18, 2024
Dear School District,
How are you doing? I imagine it's been another challenging year. So many metaphorical fires to deal with. So many stakeholders to please.
I know you have soooo much on your plate: education, transportation, building maintenance, regulations, budget shortfalls, etc., etc., etc. I know it is hard to run a school district. I know you have an unbelievably challenging mission.
You know who else has it tough? Teachers. Frankly, too many school districts aren't helping teachers with things that should be easy. I'm not talking about salary. I'm not talking about class size. The former should be higher; the latter lower. I'm talking about simply making saving for retirement via a 403(b) and or 457(b) easy. Too many school districts are FAILING at this simple mission.
Latest 403bwise School District 403(b) Plan Grades
We rate school district 403(b) plans. So far we have graded a lot of plans: 4,675 to be exact. The results are not good. In fact, most school districts should be in retirement plan summer school.
- A-rated plans: 3.1%
- B-rated plans: <0.5%
- C-rated plans: 62.2%
- D-rated plans: 18.9%
- F-rated plans: 14.8%
Search your school district grade here.
See how we grade here.
Struggle to Hire Teachers
If for no other reason, districts should offer the best possible 403(b) and 457(b) plans in order to attract and retain teachers. What is one way employers attract and retain quality employees? By offering enticing benefits. Improving the 403(b) and 457(b) plan is the lowest of hanging fruit.
A Few Districts Do It Right
- Montgomery County Public Schools (MD)
- Wisconsin Dells (WI) — See podcast below with superintendent of this school district who discusses how he uses their A-rating to retain and recruit staff.
ERISA Excuse
The main reason K-12 403(b) plans are generally awful is because public 403(b) plans are not subject to Employee Retirement Income Security Act fiduciary duties. A school district is under no obligation to offer a quality plan. And most districts hide behind this carve out. That's embarrassing for the profession.
Stay wise and well (and it's high time school districts got their 403(b) and 457(b) acts together).
Related Podcast:
Super Superintendent Terry Slack is a Superintendent (known as District Administrator in Wisconsin) who gets the importance of offering a low-cost 403(b). His district's A-rated single vendor plan has a 75% participation rate. We talk with Terry about why and how he prioritizes employee wellness. Listen Now »