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mckennaptr

Starting A 457

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Our school district doesn't offer the 457 plan . To tell the truth I don't even think they are aware of its availability.

I would like to query them on offering it to their employees. I would imagine that there would be extra time and money needed to administer the plan.

Any ball park figure as to what this extra time and cost to the district would be?

How should this subject be broached? It's a shame that we missed out on 2003 and hopefully we can take advantage of this plan for 2004 and beyond.

I don't want to ruffle any feathers so input will be appreciated.

Peter

 

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Guest Joel

I don't want to ruffle any feathers so input will be appreciated.

_________________________________________________________

 

Sure you may very well ruffle some feathers but you should not let this bother you because your cause is 10,000% right. The law does not compel your employer to establish a 457(b) Plan but it surely permits employees to negotiate/ask for one. C'mon Pete, step up to the plate and swing even though you might hit the pitcher in the eye like Gil Mac Dugal did to Herb Score. Either you are in the game or not!!!

 

Those fat cats that run the district may take you out for a drink after they realize that they can simultaneously defer the max to 403(b) and 457(b). Let's us know if they gave you a dinner too.

 

Peace,

Joel L. Frank

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Guest Guest_Edd

Hi Pete and Joel. The county of which my district is just one, analyzed several options and ended up recommending just two companies that offered 457b plans to the individual school districts within the county. The overall number of employees is around 24000 but I don't know how many school districts this represents. Their recommendations were only if school districts were interested in offering a 457b in addition to the 403b. The plans recommended were for those which had low fees and ample investment options.

 

The two that were recommended were TIAA-CREF and CalPers. The recommendations were made in looking out for the employees so we could have low fee companies in which to invest. My district and my wife's district added the 457b and she and I both went with TC. We are both happy with TC.

 

As Joel said, go in there and tell them you want a good quality 457b so you can save in a good company for retirement. It is your life and you should be able to save. TC and CalPers could go with your district as quality options as well.

 

Good luck.

Edd

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Hi Scotty. Yes, I am in San Bernardino County. Why do you ask? Is there something you know that I do not, or am I misunderstanding something?

Edd

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Guest bzribee

I am in San Diego County and we have (FBC: Fringe Benefits Consortium) as the administrator of our 457 (and 403b7's). I have chosen to invest in both types of funds but out of habit I have been maximazing the 403 first.

 

I didn't realize there were other ways to do 457's, like what San Bernadino is doing. While the fees are low or negligible and we get "A" shares, I don't feel like I have the control or knowledge of what is happening to my money that I did when I was able to invest directly into Vanguard, Janus, etc. I feel very frustrated that I cannot invest in those funds any more--this is over the old "hold harmless" agreements that no longer make any sense.

 

FBC represents many companies but mostly you buy into funds that rebalance themselves. Each "fund" seems to be a list of bunches of companies or stocks. I like my old index funds better.

 

The only way I can circumvent FBC and hold harmless agreements is to put money into (ex) a 403 Oppenheimer money market then try and remember every few months to do paperwork to have it moved to Vanguard. I'm not doing too well on all this.

 

Does anyone follow this? Any ideas? Because I don't understand it well enough. I have fears that using FBC may turn into a mistake.

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Guest Guest_Joel F

Find out if the 457 Plan of the State of California is available to you.

 

Peace,

Joel

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