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Fiduciary Responsiblity For A 457(b)?

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Joel -

 

Although I could contribute to a 403(b) I am not, opting for the no-penalty withdrawal advantages of the 457b because of my younger age when I can retire from the state system.

 

I realized in saying "annuity company" the implication is that it's an annuity, but its actually in various investment funds managed by VALIC (I know many do not like them, but it's the only option available at my institution for a 457b account).

 

As far as I know from others who have 403 accounts they do not have this same problem. My thoughts as to why?

 

*I* was the person who pushed for our organization to even get a 457b plan a few years ago... we were one of only a couple of state schools in our state left that were NOT offering a 457b option! That said, I don't think there are a lot of people participating via the 457 plan, so I think we're being treated as ugly stepchildren for now.

 

Lucy

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Guest Sierra

Joel -

 

Although I could contribute to a 403(b) I am not, opting for the no-penalty withdrawal advantages of the 457b because of my younger age when I can retire from the state system.

 

I realized in saying "annuity company" the implication is that it's an annuity, but its actually in various investment funds managed by VALIC (I know many do not like them, but it's the only option available at my institution for a 457b account).

 

As far as I know from others who have 403 accounts they do not have this same problem. My thoughts as to why?

 

*I* was the person who pushed for our organization to even get a 457b plan a few years ago... we were one of only a couple of state schools in our state left that were NOT offering a 457b option! That said, I don't think there are a lot of people participating via the 457 plan, so I think we're being treated as ugly stepchildren for now.

 

Lucy

 

 

Who are the investment providers for your 403(b) Plan?

 

Joel

 

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Joel;

 

The 403(b) participants can choose between VALIC and TIAA-CREF (pretty typical choices). I have accounts with TIAA-CREF from a previous school I worked for, and personally prefer them, but the institution did not want to have to "deal with multiple servicers for the 457 if there aren't going to be a lot of participants". I think (from what I can gather) that VALIC was able to set up a 457 quicker, so they went with them.

 

Lucy

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Guest Sierra

Joel;

 

The 403(b) participants can choose between VALIC and TIAA-CREF (pretty typical choices). I have accounts with TIAA-CREF from a previous school I worked for, and personally prefer them, but the institution did not want to have to "deal with multiple servicers for the 457 if there aren't going to be a lot of participants". I think (from what I can gather) that VALIC was able to set up a 457 quicker, so they went with them.

 

Lucy

 

Hi Lucy;

 

Does your state government operate a 457 Plan that is opened to the college crowd?

 

Joel

 

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Lucy,

 

Theoretically, the college may have fiduciary obligations arising from your state's laws.

 

Practically, you do not have much recourse. You could sue the college. although, this would be expensive and if you prevail, what are your damages?

 

Your best course of action may be to contact your state Auditor. They may be able to get your employer to make timely deposits of deferrals.

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