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Type Of 457b

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My wife works for a public district hospital and participates in a 457b program. Although we are fairly sure this is a funded program and not a top hat we want documentation. The plan is open to all employees. The employer has nothing describing the particulars of the program. So we set up a meeting with the reps of the company that adminsiters the program, VALIC. One rep said he thought it should be funded. The other rep said it wasn't. So we called them later and asked the question again. The rep who previously said it wasn't funded called back and said she now thinks it is but there's nothing anywhere in writing. We asked her for her response in writing and she choked. Two weeks later we've received nothing. Isn't there some document that should exist describing the program as either a funded or non-funded one? Tom

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Guest Sierra

My wife works for a public district hospital and participates in a 457b program. Although we are fairly sure this is a funded program and not a top hat we want documentation. The plan is open to all employees. The employer has nothing describing the particulars of the program. So we set up a meeting with the reps of the company that adminsiters the program, VALIC. One rep said he thought it should be funded. The other rep said it wasn't. So we called them later and asked the question again. The rep who previously said it wasn't funded called back and said she now thinks it is but there's nothing anywhere in writing. We asked her for her response in writing and she choked. Two weeks later we've received nothing. Isn't there some document that should exist describing the program as either a funded or non-funded one? Tom

 

By law a 457(b) plan established by a public employer is funded. Ask to see the Plan Document. If there is none, the law is being violated.

 

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Sierra is correct. If your employer is a government entity, then the 457(b) plan must be funded in a protected trust.

 

If your employer is a non-profit (tax-exempt) entity, then the 457(b) plan cannot be funded in a protected trust, and the funds must remain employer assets subject to creditors.

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