NTSA Working to Wreck K-12 457(b) Plans
May 9, 2023
Not content with working tirelessly to keep the K-12 403(b) broken (see: NTSA Works Against Teachers Best Financial Interests), the National Tax-Deferred Savings Association is sponsoring legislation (SB 1233) to prevent most Illinois school districts from going single 457(b) vendor.
Why Would the NTSA do this?
- The organizations they represent are terrified of competition. Illinois recently rolled out a state-based 457(b) plan that as assets under management grow, has the potential to rival other great state-based 457(b) plans available to teachers like the one in nearby Ohio.
- When most of the eligible participants (police officers, fire departments, state workers, etc.) contribute to a single plan, investing costs go down. It’s called economies of scale. This terrifies the NTSA.
- Large school districts (Chicago, Denver, Anchorage) are going single 403(b) vendor. The trend will only grow.
What You Can Do
Contact the two sponsors of this legislation:
Questions to ask:
- Why specifically are you supporting this legislation?
- How does this bill help educators keep costs down?
- Why would you take away a school district's ability to competitively bid its 457(b) plan?
- Why doesn’t this legislation apply to other 457(b) eligible employees like police and firefighters?
- How do you think this legislation will affect the state’s new 457(b) plan which is working to grow assets under management?
- Have you engaged Illinois teachers on this issue?
- How much do you know about the NTSA, the only entity supporting this legislation?
- Why are you taking cues from a Virginia-based lobbying organization? If you aren't taking cues from them, why are they the only entity supporting this legislation?
NTSA Will Not Stop at Illinois
Rest assured the NTSA isn’t stopping at Illinois. In fact it’s currently lobbying against auto enrollment in Maryland.
Stay wise and well (and know that the NTSA would hate for this blog post to be widely read by Illinois educators)
Related Podcast: NTSA Working to Wreck K-12 457(b) Plans
NTSA Working to Wreck K-12 457(b) Plans NTSA pushing bill to ban single vendor 457(b) plans in Illinois. But only for K-12 institutions. Not police plans. Not firefighter plans. Not government employee plans. Listen Now »