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Brian222Golf

We Just Added Vanguard!

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Great news for most Pennsylvania teachers. Employee Admin. Services who is the TPA for Kades Margolis

( they have over 300 of the 501 districts in the state of PA ) agreed to work with Vanguard. Teachers maybe delayed for their first paycheck in Jan., but after that the deal will be signed and ready to go.

 

I know that these new laws have not worked out for everyone, but with the ability to invest in a 403B, Roth 403B, and a 457 - I must say that it has really worked out for those of us in Pennsylvania.

 

I really hope that it works out for all of the teachers throughout the country. Remember that if Vanguard does not sign - there is always 403B ASP - Which is a tremendous option.

 

Here is hoping for everyone to do well.

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Brian,

Pardon the questions but this is great news and I have always wondered why VG signs on to some districts and not others. I personally do not believe the usual "business model" explanation because if it were all of VG's responsiblity, they would not sign any agreement. Its a two way street.

Hope you can shed some light on this and perhaps we can pressure our own districts TPA language.

Thanks,

Steve

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Great news for most Pennsylvania teachers. Employee Admin. Services who is the TPA for Kades Margolis

( they have over 300 of the 501 districts in the state of PA ) agreed to work with Vanguard. Teachers maybe delayed for their first paycheck in Jan., but after that the deal will be signed and ready to go.

 

I know that these new laws have not worked out for everyone, but with the ability to invest in a 403B, Roth 403B, and a 457 - I must say that it has really worked out for those of us in Pennsylvania.

 

I really hope that it works out for all of the teachers throughout the country. Remember that if Vanguard does not sign - there is always 403B ASP - Which is a tremendous option.

 

Here is hoping for everyone to do well.

 

I hate to burst your bubble, but you MUST FIND OUT WHAT KADES MARGOLIS IS CHARGING(loads). Just as without them offering Vanguard, their fees are the highest around. In my school district they also have Lincoln Investments who are also offering Vanguard. But they charge annual fees of .009 ###### the total amount in the account every year. Now that's bad, but generaly better than Kades-Margolis fees!! They charge fees(loads) starting at 5.25% of the money invested.

see: http://204.2.108.145/MoneyByDesign/documen...0Disclosure.pdf

Invested directly with Vanguard you would pay 0(zero) load!

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I hate to burst your bubble, but you MUST FIND OUT WHAT KADES MARGOLIS IS CHARGING(loads). Just as without them offering Vanguard, their fees are the highest around. In my school district they also have Lincoln Investments who are also offering Vanguard. But they charge annual fees of .009 ###### the total amount in the account every year. Now that's bad, but generaly better than Kades-Margolis fees!! They charge fees(loads) starting at 5.25% of the money invested.

see: http://204.2.108.145/MoneyByDesign/documen...0Disclosure.pdf

Invested directly with Vanguard you would pay 0(zero) load!

 

I checked out the web site shown above. Yep, it shows that Kades-Margolis Capital Money-by-Design charges front end loads of 5.25%.

 

Yet another argument to nuke the 403b program.

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Kades is paying for our TPA hoping they get a lot of business. This plan is directly with Vanguard. $10 a year is being charged by Vanguard and that is it. NO FEES GO TO KADES MARGOLIS - THEY GET NOTHING.

 

The reason Vanguard decided to agree to the Information Sharing Agreement is because there was a lot of pressure put on Kades' TPA - Employee Admin. Services and Vanguard to get an agreement done for Vanguard's home state.

 

So once again - THIS IS DIRECTLY THROUGH VANGUARD. NOT THROUGH THE Money by Design that Kades does sell.

 

 

 

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Kades is paying for our TPA hoping they get a lot of business. This plan is directly with Vanguard. $10 a year is being charged by Vanguard and that is it. NO FEES GO TO KADES MARGOLIS - THEY GET NOTHING.

 

The reason Vanguard decided to agree to the Information Sharing Agreement is because there was a lot of pressure put on Kades' TPA - Employee Admin. Services and Vanguard to get an agreement done for Vanguard's home state.

 

So once again - THIS IS DIRECTLY THROUGH VANGUARD. NOT THROUGH THE Money by Design that Kades does sell.

 

 

Lucky Duck

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The reason Vanguard decided to agree to the Information Sharing Agreement is because there was a lot of pressure put on Kades' TPA - Employee Admin. Services and Vanguard to get an agreement done for Vanguard's home state.

 

 

 

Brian,

First off Happy Holidays and congratulations. Hard to believe that a deal that you report can ever happen in this system because for years the TSA sales people have always said what you report that everything is FREE. Also, hard to believe that the TPA gets NOTHING! That VG gets its usual $10 a year for fund administration that all VG people pay for investments under $10,000 (I think).

Need to probe you more for information because those of us who want to know the details do not have access.

 

Sorry, but "pressure" is too vague. The pros state that VG made a "business decision" implying that nothing else can persuade VG to sign the ISA. The results of this “pressure” are what I am interested in. Was there a change in the language of the ISA by Kades' TPA. You wrote that Kades TPA AND Vanguard got the agreement done for VG's home state.

Was there an exception made for VG?

 

Lastly, April 2006 you report in this forum: Does anyone know if Vanguard will offer a 403B account after the new IRS laws go into effect starting Jan. 1? I called Vanguard and they are not even aware of the new laws that will soon be here. My school district's business manager says that he feels there is no way Vanguard will keep this type of account going.

What changed your business manager's mind?

 

Thanks,

Steve

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Kades is paying for our TPA hoping they get a lot of business. This plan is directly with Vanguard. $10 a year is being charged by Vanguard and that is it. NO FEES GO TO KADES MARGOLIS - THEY GET NOTHING.

 

The reason Vanguard decided to agree to the Information Sharing Agreement is because there was a lot of pressure put on Kades' TPA - Employee Admin. Services and Vanguard to get an agreement done for Vanguard's home state.

 

So once again - THIS IS DIRECTLY THROUGH VANGUARD. NOT THROUGH THE Money by Design that Kades does sell.

 

 

Ok, I'm a newer teacher trying to learn the ropes here. I teach in Pennsylvania. My district is on the smaller side. I had my 403B with Vanguard, but now I can only choose between Kades Margolis, Lincoln, or AXA Equitable. One of them offered Vanguard, but with their 1.3% fees on top it was no great deal.

 

Are you saying my district could have access to this plan too? What would I/we have to do? How did your district get this?

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Well in PA it looks like my previous post was wrong(I can't burst your bubble). Dave you are correct & I'm now getting Vanguard with only a $10.00/yr fee, which is GReat! This was after much complaining to the PSEA & congressman, etc. It's actually through another co. related to Kades Margolis, called EMPLOYER ADMIN SERVICES. see http://www.employeradmin.com/home/Home/tabid/64/Default.aspx

You can actually go to that website under employee, then state & see what school district sign on, what plans they have & even see that S.D. written plan. It took time but it's GREAT. Amazing what being vocal can do for you.

It's explained on the PSEA website post: http://www.psea.org/general.aspx?id=3848

 

 

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Elaine,

 

"Amazing what being vocal can do for you."

 

I couldn't agree more! How were you "vocal?"

 

Have a great weekend,

Steve

Well, it was mainly writing e-mails to the S.D. business mgr.; local union Uniserve rep., my U.S. Congressman(who after several e-mails back & forth called me on the phone to clarify the issue), and Jim Testerman, the PRESIDENT of the PSEA!!!!. At first Jim Testerman only was defending Kades Margolis. I know others proved to the Union & S.D. mgmt. with spreadsheets, etc. that these other Co.'s with LOADS( fees) were a rip-off. The union must have had many complaints from others. Apparantly if you read the PSEA notice they got so many S.D.'s to sign on to the one Kades-Margolis/ E.A.S. AGREEMENT as a TPA. Then it meant in PA, Vanguard only had that one agreement for it's lawyers to aggree on for all those S.D...........THIS IS ALL MY GUESS On their website E.A.S. http://www.employeradmin.com/home/AboutUs/...36/Default.aspx

says, "provide a comprehensive compliance and common remitting program to support the 403(b) plan market. EAS provides common remitting services on behalf of the plan for all vendors and products approved by the employer as well as providing proactive compliance monitoring on behalf of the plan and participants." They may be charging the S.D. fees???

good luck

 

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They may be charging the S.D. fees???

 

Call your district. It would be astonishing that a district actually is looking out for its employees.

Also, it just occured to me that VG is in your state. Must be nice.

Steve

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They may be charging the S.D. fees???

 

Call your district. It would be astonishing that a district actually is looking out for its employees.

Also, it just occured to me that VG is in your state. Must be nice.

Steve

It looks like a combination of efforts by the PSEA(Penn.Education Assoc.) union pressuring Vanguard, School districts & the unions endorsed 403(b) vendor(Kades-Margolis). This after complaints from teachers like us. However, a lot has to do with being in Vanguard's home state. I don't know all the answers, just that they got it to work here.

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I checked out the EAS website and looked at all their school districts in WA state. Not a single one has Vanguard signed on, so the PA miracle is indeed an unusual occurrence.

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