Jump to content
Sign in to follow this  
johnNJ

Nj 457 Plan Administers

Recommended Posts

I'm a NJ municipal employee currently enrolled in a 457 plan run by Nationwide. The town also uses Valic. Both charge high fees. .60-.90% plus the cost of the fund. (anywhere from .5 to 1.3%). I used to Vanguard funds charging less than .5%.

 

Can someone recommend a company whose fees are lower? I tried contacting company's directly fidelity/Vanguard/ Tiaa-Cref . etc It seems like no one deals with NJ 457 Plans..

 

Any info would be great. The town is willing to change to another company butI can't even recommend one!!

 

Please feel free to contact me directly johndeg1@aol.com or post to the board for all to see

Share this post


Link to post
Share on other sites
Guest Sierra

I'm a NJ municipal employee currently enrolled in a 457 plan run by Nationwide. The town also uses Valic. Both charge high fees. .60-.90% plus the cost of the fund. (anywhere from .5 to 1.3%). I used to Vanguard funds charging less than .5%.

 

Can someone recommend a company whose fees are lower? I tried contacting company's directly fidelity/Vanguard/ Tiaa-Cref . etc It seems like no one deals with NJ 457 Plans..

 

Any info would be great. The town is willing to change to another company butI can't even recommend one!!

 

Please feel free to contact me directly johndeg1@aol.com or post to the board for all to see

 

 

NJ state and local government officials are in the back pocket of the high priced retail vendors of retirement products.

 

Point 1. For the first 25 years of its existence the state employees' 457 plan was operated internally by the Division of Investment and charged 8 (eight) basis points. That was really a de minimis plan. About 2 years ago it farmed out the operation to Prudential Financial at a cost to the investor of about 250 basis points. The state employees union attempted to stop it but to no avail!

 

Point 2. This corruption will only change when the largest public employee lobby in the state, the New Jersey Education Association, demands a change. First part of the change has to do with changing back to a no-load operation and the second part has to do with allowing local public employers, including school districts to opt into the Plan.

 

Joel L. Frank

 

Share this post


Link to post
Share on other sites

Johnnj,

Fidelity will take on new 457b plans with just a few employees. While I like their Spartan index funds, the actively managed funds from Fidelity can get and are pretty expensive. The Spartan index funds are a good deal and I hope to get my county employer to move in this direction. The resistance I have from my employer is Fidelity requires the county to be the plan fiduciary. The current providers supposedly are the plan fiduciary’s but somehow I question how a govt entity could sign away their 457 plan fiduciary responsibilities!!!!!!

 

As for Vanguard, it has been my experience that your plan needs to bring a great deal of money/assets to the table to get them interested (I recall $10-20 million for them to be interested - this was about 3 years ago)!

 

Good luck. If you do not ask for a lower priced plan, it will never happen. Try and get your follow employees involved/educated about managing their own money (I know it is not easy, but the alternative is HIGH FEES forever).

 

If I can not get a lower priced plan, it may be time to start funding a ROTH IRA and reduce the contributions to my 457b/401a plans.

 

Gerry L.

 

Share this post


Link to post
Share on other sites

Gerry,

 

Who did you speak with at Fidelity?

 

 

Try this number 1 866 733-1192. I have also been working with Fidelity Client Services Manager, John Kaiser at 1 800 868-1023.

 

If their 457b requirements have changed from no minimum dollar amount of assets and/or number of 457b participants, please let me know.

 

For Fidelity to come and setup the program at your workplace, they probably need a good number of participants to get things going.

 

In my case, we are a long way from any metro area (4-6 hours) so we would probably do things by mail/######.

 

My holdback is my employer. They do not want to be the plan fiduciary and I need at least 12 people who are willing to manage their own investments. I only have 6 out of 200 employees. If I can get 12 people HR and Finance would consider some changes.

 

Let me know how this turns out for you!

 

Gerry L. in eastern California.

 

Share this post


Link to post
Share on other sites

Joel...

 

Sorry I didn't reply. It was a lot to digest and as true as can be!!! Not being in the NEA what can we do about it? Why can't I do it myself on a weekly basis.. Why does a company have to handle this. If we can set up our own IRA's and Roth IRA's when will the ability to run my own 457 come??

Share this post


Link to post
Share on other sites
Why can't I do it myself on a weekly basis.. Why does a company have to handle this. If we can set up our own IRA's and Roth IRA's when will the ability to run my own 457 come??

 

Simple answer is because it is an employer sponsored plan, not an individual plan.

 

 

Share this post


Link to post
Share on other sites

Yes that is the simple answer...... Even though the employer sponsors it, its not ike a 401k and there are company matches. It just my money....

 

I get your point. And true it is!!

 

 

 

 

Why can't I do it myself on a weekly basis.. Why does a company have to handle this. If we can set up our own IRA's and Roth IRA's when will the ability to run my own 457 come??

 

Simple answer is because it is an employer sponsored plan, not an individual plan.

 

 

Share this post


Link to post
Share on other sites

John

 

I am also a NJ Government employee who has been attempting to find other vendors. The process can be extremely frustrating. The first problem is that most of your fellow employees don't understand the high impact of fees over the long haul. They also don't understand that they are purchasing annuities that have surrender charges.

My employer brought in another vendor recently. I was able to get them to offer to waive the surrender charges if our other vendor, AIG VALIC, agreed to do the same. As of this date it has not happened. I am still attempting to find another vendor that is not an annuity allow and gives employees another choice.

The other problem with most government employees in NJ is that they do not realize that our pensions and health benefits are under attack. Most employees are counting on the pensions for their retirement security. Most believe that they will never touch our pensions. Many do not save outside of their pension contributions or save to little.

 

 

 

Share this post


Link to post
Share on other sites
Guest Sierra

MBC724: I assume you are a NJ local public sector employee, am I correct? Please feel free to react to what I have contributed.

 

NJ state and local government officials are in the back pocket of the high priced retail vendors of retirement products.

 

Point 1. For the first 25 years of its existence the state employees' 457 plan was operated internally by the Division of Investment and charged 8 (eight) basis points. That was really a de minimis plan. About 2 years ago it farmed out the operation to Prudential Financial at a cost to the investor of about 250 basis points. The state employees union attempted to stop it but to no avail!

 

Point 2. This corruption will only change when the largest public employee lobby in the state, the New Jersey Education Association, demands a change. First part of the change has to do with changing back to a no-load operation and the second part has to do with allowing local public employers, including school districts to opt into the Plan.

 

Joel L. Frank

 

 

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

×
×
  • Create New...