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Valic Avoiding Completing The Model Disclosures Form

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#1 mmk

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Posted 14 July 2017 - 07:51 AM

Is there any mandate for investment companies (Valic, in my case) to complete the 403(b) model disclosures form?  They're avoiding responding to me.  My school district, at my urging, sent the form to them a couple of years ago and they partially completed it in response to that --- but I realized I hadn't gotten an update, so I requested it from our "advisor," and she's avoiding me, now.  Which makes me not trust my investment company much.


The instructions I've seen say that employers might want to consider modifying their contract with their provider to require this form be completed annually -- but my employer's benefit manager is not terribly on-the-ball about this stuff.


Is there a legal requirement, for investment providers to public school districts, that anyone can point me to?


I kind of want to use this to force the issue that, perhaps, my school district should consider putting out an RFP and start shopping around for another investment company!



#2 EdLaFave

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Posted 14 July 2017 - 08:33 AM

My slightly informed guess is that it is up to the district to force the investment companies to fill out these types of forms...otherwise, you'll have to read through the prospectus.


I can definitively say that Valic is a really bad choice here in OCPS (FL). Do you have any other vendors in your district?

Navigate and reform OCPS' 403b and 457b.

#3 sschullo

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Posted 14 July 2017 - 08:57 AM

Hi mmk,

Valic will never fill out that form that was created as a mere distraction. The industry knows changes are happening and are very threatened by the transparency everywhere else but in our 403b with public school districts. This form was created by a professional organization of annuity agents National Tax Shelter Accounts Association (now called NTSA) with our most lovable National Education Association! ("Product of the NEA & NTSAA Joint 403(b) Taskforce").


Our advisory 403b and 457b committee at Los Angeles Unified recognized and rejected so called Project Transparency ON THE SPOT because we knew it was a total and complete ruse. Districts could NEVER enforce filling out this form by the hundreds of agents in our educational culture: http://www.ntsa-net....JM=&portalid=4 . A few weeks later, NTSA had a meeting with NEA and of course, our lovable union signed on right away because the NEA doesn't give a damn about their 3.5 million members. 


Don't waste your time and effort trying to get ANYTHING from valic or any large insurance company. They rule the 403b with districts and our most powerful unions with an iron fist. Only we can fight back by avoiding them and informing everybody we know to avoid them too. 


Have a great day,


Steve Schullo

Author and Co-Author of two books:

1. Late Bloomer Millionaires: A Financial Story and Investment Guide for the Late Starter (2013)

2. Fighting Powerful Interests: Educators Challenge Tax-sheltered Annuities and WIN! (2015)