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JAM

Having trouble getting 457 plan added

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Hi all

Currently I have a 403b self directed plan through Lincoln investment.   I am trying to open a 457 plan through Lincoln but it is not offered in my district (Hunterdon county NJ).  The person(business admin in my district office)  who is in charge is saying they do not want to add it at this time.  Is their something I can do ?   Who else should I speak with ? 

Axa has a 457 plan through my district all ready but I do not want to go through axa.  

 

Thank you 

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JAM, that's great that you have the Lincoln Investment Participant Directed Platform (PDP) set up for your 403b! To get the 457 PDP added to the 457 vendor list,  you may need to go over the head of the business admin person. Was the "person" the chief financial officer? If not, you could write or talk to the CFO. If it was the CFO, then find out who's over her/his head.

One of the BH posters quoted a Lincoln Investment staffer saying that the PDP is required by "law" in NJ (?) and another has said that the NJEA was involved in setting it up (?)! You could ask the NJEA on the state level for advice on how to get your district to add the 457 PDP. There must be some secret arrangement between Lincoln Investment and somebody that allows the PDP almost exclusively in NJ. Please update us on your progress in getting the 457 PDP added. 

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53 minutes ago, krow36 said:

JAM, that's great that you have the Lincoln Investment Participant Directed Platform (PDP) set up for your 403b! To get the 457 PDP added to the 457 vendor list,  you may need to go over the head of the business admin person. Was the "person" the chief financial officer? If not, you could write or talk to the CFO. If it was the CFO, then find out who's over her/his head.

One of the BH posters quoted a Lincoln Investment staffer saying that the PDP is required by "law" in NJ (?) and another has said that the NJEA was involved in setting it up (?)! You could ask the NJEA on the state level for advice on how to get your district to add the 457 PDP. There must be some secret arrangement between Lincoln Investment and somebody that allows the PDP almost exclusively in NJ. Please update us on your progress in getting the 457 PDP added. 

Right now I’m talking to the coordinator HR and Payroll she is working with the person above her in adding the 457.   The person above her does not want to add but the coordinator said give her some time .  

Lincoln investment does have 457PDP just not with my district.  When speaking with some one at Lincoln they could understand why it’s not available at my district. 

So not sure what the next step is or if I just should sit tight and see if the coordinator can get it done. 

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6 minutes ago, JAM said:

Right now I’m talking to the coordinator HR and Payroll she is working with the person above her in adding the 457.   The person above her does not want to add but the coordinator said give her some time .  

Lincoln investment does have 457PDP just not with my district.  When speaking with some one at Lincoln they could understand why it’s not available at my district. 

So not sure what the next step is or if I just should sit tight and see if the coordinator can get it done. 

If you've got someone in the system that is working with you, that's great! It seems to be common that these changes take some time. It's obvious to you and us that there's an injustice that needs to be corrected ASAP, but those in a position to make the correction don't understand, and inertia allows them to procrastinate. You need them to give them time to realize that your cause is just, and that you won't give up. If you can get the change to happen without loosing your cool, it's likely to happen sooner. 

Keep in mind that what you are working for is what's fair to teachers. It seems likely to me that the pushback will give in if you keep up steady pressure. It might help if you can recruit another teacher to make your point. It seems like it should be so easy, doesn't it?? The district already is 457 plans on their vendor list. Lincoln Investment PCP is on the 403b list. The PCP also has a 457 plan for not additional admin fee to the teachers. They probably sense that they have to give in, but don't like being "pushed around" by the district employees. Keep the pressure up and maybe give them a big bouquet of flowers when it happens?

I don't understand your comment: "When speaking with some one at Lincoln they could understand why it’s not available at my district." Did they explain why they think it's understandable that 457 PCP isn't available in your district? Perhaps there's no-one using the 403b PCP? If so, that's sad. Maybe you will spread the word? Keep in mind that the K-12 403b plans were all originally annuity based. The low-cost internet based plans using custodial accounts were all added after some teacher worked to get them added to the vendor list. 457 plans are a recent addition and your district is ripe for some teacher activism! You are doing great to get the 403b PCP started, so spread the word on that!

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My district consists of 2 schools.  1 person has a 457 through Axa out of both schools.  I will be the first one to have a 457 through Lincoln and the first at my school.  I have been trying to recruit people and make them understand the benefits of this plan. 

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OK JAM, thanks for filling in the picture. That's great that you are trying to spread the word on a better 403b and 457 plan. I guess such a small district gives you a small number of HR folks you have to deal with, and that's an advantage?

Again, just be persistent with gentle, polite pressure. I think the district will soon realize that they know how to deal with the Lincoln Investment 403b and also with 457 contributions (to AXA). And that the easiest way to get you out of their hair is to put Lincoln Investment on their 457 vendor list. 

Have you read the NY Times article on the AXA 403b for K-12 teachers? You could consider giving a copy to the decision maker? It's the 2nd article in the series. Of course the whole series is great and I wish I could put copies in every teacher's staff room!

https://www.nytimes.com/2016/10/27/your-money/403-b-retirement-plans-teachers-brokers-fees.html 

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