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subran

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  1. Where can I locate the 457(b) rules and regulations? Is it part of the IRS code? I tried GOOGLE but came up with some weird stuff. I'm trying to determine what the responsibilities of the sponsor and plan administrators are. In a earlier forum discussion, someone indicated that the employer is responsible for establishing a committee/trustee to oversee the plan. Although we have a 457 plan -- we do not have anyone overseeing it. The employer is pretty much out of the picture (except for making the deduction and remitting it to the a457 vendor). In fact the employer does not even have a contract with 457 vendor. I want to know what the regs requires in administering a 457 plan and how we can make the 457 vendor to change the investment options, fees, etc. Any insight is appreciated.
  2. Thanks for all the replies - Appreciate the insight. For the past week, I've been calling around for my employer - to seek an alternative 457 plan. It seems like the insurance co. are the major players in this field. Since my agency only has 200 employee - the options are not that good - the vendors are quoting about the same level of fees (in fact the investment options may be better in our current plan). Vanguard is not a player in 457 plans. Fidelity seems to have a good plan - $24 per year in fees - no reps - and a 50 page contract that covers them from virtually anything that could go wrong! American Century offers an interesting plan - $10 per fund - waived if participant assets are over $10K. TIAA-CREF & TR Price wants an initiation fee - about $2k which my employer would throw out. Also we would only have access to the co. mutual funds. All is not lost. Also contacted the City administrators/bureaucracy - and they are considering opening up their plan to other agencies in town. Theirs is a no fee plan with an oversight committee. Seems to be logical choice -- but the investment options could be better. Their provider indicated that City has 60% participation rate (compared to 10% at our agency). Will urge boss to write a courtesy letter to prod them to act - but still unsure if this is a good option. Others at work not really interested so its all on my shoulders (pity, pity...). That's where I stand for now. Any further discussion/insight is appreciated! By the way -- what does it mean to "... annuitizing your account balance.." as qouted by Redwoods - I've come across it before but don't know what it means...
  3. The fees charged are high. It ranges from 0.75-1.25 basis points. Its an annuity product. Come to think of it - I don't we get anything (reports etc) from them. Its entirely between the co. and the participant. My employer offered the plan in 2000 but we do not have any input as to the fund selection, etc.
  4. I was wondering whether the option available in a 403(b) plan - to transfer funds out of it to a vendor of your choice also applies to a 457 plan. Does anyone know?? Does 457 plan have anything like this.... "Unhappy with your current 403(b) provider? Fed up with your employer's vendor list? The IRS allows you to perform something called a 90-24 transfer into the vendor of your choice. The caveat is that your employer's plan and your existing vendor must permit transfers. The IRS allows transfers, but does not require them to be made. You may experience some reluctance on the part of your existing provider to part with the funds. If they simply refuse to make the transfer, there is little that can be done. If they do permit transfers, however, you can move existing 403(b) money into quality low-fee companies like Fidelity, Charles Schwab, TIAA-CREF, and Vanguard to name a few, even if they are not on your employer's approved vendor list. There are two more significant points to keep in mind....." Info is from this website.
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