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sschullo

Another 403(b) horror story LA Times

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Hi 

Most regulars already know this sad story about the horrific practices that are everywhere in the country with public school teachers, salespeople and the 403(b). An article like this needs to come out every month. But this is what we got. 

http://www.latimes.com/business/la-fi-public-school-teacher-savings-plans-20181027-story.html 

This article explains the differences between the 401k plans which has some protection from the sharks under federal law ERISA, while the 403b plans have absolutely NO PROTECTIONS! An annuity shark might go to jail or lose his or her license for trading for one annuity to another (or just sell a product for the commission) in the 401k world. That barbarous trading practice is not only allowed but protected by our states insurance code, 770.3. Here in California, we cannot even keep these sharks off our campuses. I would think that book publishers, desk manufactures or even Apple would love to send their salespeople to campuses.  But those companies cannot because they are required to go through a competitive bidding process. 403b vendors have the absolute right to walk on campuses and right into classrooms as they see fit 24/7.

Please tweet, email, FaceBook and use LinkedIn to all of your followers this article. We have to somehow, someway get this story in front of as many of our colleagues as possible.  

Have a great week,

Steve

PS: another more detailed article on September 29, 2018, about what teachers actually experience when confronting 403(b) salespeople.  https://www.cnbc.com/2018/09/28/why-these-teachers-retirement-plans-arent-making-the-grade.html 

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