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Ken F

Model Disclosure form & the 403 B task force

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looking for answers on what happened to the implementation of this?  Was it just all for show a smoke screen?

I have not seen this Model Disclosure be implemented in any School districts. Obviously these organizations were proud of what they created from this Task Force ....they said so themselves.

https://www.planadviser.com/403b-transparency-taskforce-launches-model-disclosure-form/

“Transparency benefits everyone in the 403(b) marketplace—that’s why we urge adoption of the 403(b) model disclosure form by public schools throughout the country,” said Brian Graff, executive director and CEO of ASPPA. “We believe that once these standards are in use, school employees will have a better handle on their retirement plan options.”

http://www.benefitspro.com/2011/09/20/403b-task-force-fights-for-transparency-standards

“We are committed to improving the 403(b) system by creating national transparency standards for 403(b) fees and services. This will allow public school employees the opportunity to evaluate their retirement savings options so they can make informed choices about their retirement. We strongly believe that improving transparency is a far better approach to improving the 403(b) marketplace, than taking away employee’s options as some have been advocating,” said Brian Graff, executive director and CEO of ASPPA

Letter to SEC & not sure how to interpret this ?

https://www.sec.gov/divisions/investment/noaction/2015/american-retirement-sssociation-021815-482-incoming.pdf

 

Link to form: PDF

http://ntsa-net.org/LinkClick.aspx?fileticket=-EuSEmXEaJM%3D&portalid=4

 

 

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I think the 403b Model Disclosure is an attempt by the profiteers to keep the multi-vendor mess in place. It’s laughable that NEA was involved in it’s development. I wonder how many millions they received for the loan of their acronym? NTSA is an industry mouthpiece/lobbyist. Both NTSA, ARA and NEA want to keep the multi-vendor annuity salespeople prowling the schools.


Scottyd on NTSA:   http://teachersadvocate.blogspot.com/2016/04/ntsa-continues-shameful-campaign.html   and http://teachersadvocate.blogspot.com/2016/09/ntsa2013.html
Scottyd on ARA: http://teachersadvocate.blogspot.com/2016/04/american-retirement-association-opposed.html   and http://teachersadvocate.blogspot.com/2016/04/debunked-asppa-study-used-to-push.html

Scottyd probably has written about the 403b Model Disclosure but I didn’t get past the 2016 articles above.

School districts do not have the power, funding, or knowledge to administer a 403b Model Disclosure. 403bcompare.com, administered by CalSTRS (the CA teacher’s pension organization) probably does about as good a job as can be done. They have state-wide power, knowledge and funding, all of which individual school districts lack. Although 403bcompare is a great resource, I don’t think it prevents 1000’s of California K-14 employees from falling for expensive, inappropriate annuity-based 403b plans.  

It’s clear to me that K-14 employees need a single vendor 403b, controlled by organizations that have the a fiduciary relationship to the employer and employees.

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Hi Ken,

We had this conversation via my blog sometime last year. It's a joke! The annuity industry knows that this form can never be implemented or enforced. At LAUSD there are over 200 sales people and who is going to keep a record of this form every time a salesperson talks to a teacher? Who? How will 3 or 4 district staff manage the disclosure form of all of these people who sell dozens and dozens of products? 

Steve

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This is a joke.  They need a single vendor policy implemented in each school district.  The school district should put out bids every 5 years in order to maintain the best plan.  They should have a fiduciary responsibility for their employees  as well.  The reps should be salaried that are in the schools as well.  In the private sector, you don't see 10 401k plans and each company sitting in the lounge trying churn your portfolio over to their company. 

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On 2/10/2018 at 9:37 AM, 403bannuitysalesman said:

This is a joke.  They need a single vendor policy implemented in each school district.  The school district should put out bids every 5 years in order to maintain the best plan.  They should have a fiduciary responsibility for their employees  as well.  The reps should be salaried that are in the schools as well.  In the private sector, you don't see 10 401k plans and each company sitting in the lounge trying churn your portfolio over to their company. 

What can be done about it? 

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