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dpww13

Does Anyone Know A Third Party Administrator That Will Sign Vanguard&#

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Does anyone know a third party administrator that will sign Vanguard's ISA?

Or has anyone's public school district not used a third party administrator and just signed on with

Vanguard and Fidelity?

 

My district uses Omni and they refuse to sign fund company ISAs. I want to use Vanguard or Fidelity or any other

no load fund company. As of right now, only the load bearing fund companies have signed on with Omni.

 

Confidential Planning is an exception to this. I can get low expense funds (Vanguard's 500 index fund for example) from Confidential Planning. But they do charge 0.90% (.75% + .15%). So with no load I will be paying over 1% for a 0.20% Vanguard fund that I used to get for 0.20%.

 

Without a third party administrator I will be left with no choice.

 

 

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Hi,

 

My Employers is using MidAmerica for its TPA. MidAmerica has signed Vanguard's ISA paper work.

 

jyork

Redding,

Ca

 

 

Thanks jyork

I will see if they are willing to work in New York and then BEG my business office.

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Hi Dpww13,

 

Here is contact information for you.

 

Plan Implementation Specialist

MidAmerica Administrative & Retirement Solutions, Inc.

211 E. Main St., Ste. 100

Lakeland, FL 33801

(800) 430 - 7999, ext. 142

(863) 686 - 9727 fax

www.midamerica.biz

 

You have to get proactive with your employer to keep a low-cost vendor like Vanguard on your list. I can not tell you how many hours of my time. I have spent trying to keep Vanguard on my employer's list. It was worth it.

 

Do you know about 403bcompare.com? If not I would suggest you check it out. It is a great site to compare investment products and fees. I would use it to show your employer how important it is to have one low-cost investment provider in its 403b retirement plan.

 

If you need to speak to me, you may PM at my email address at this site.

 

Good Luck,

 

jyork,

Redding, Ca

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Fidelity has signed the ISA with Omni.

This is great news for all 600 or so (mostly)

New York State schools who use Omni.

Make sure your district adds Fidelity as a choice

if they haven't yet!

 

Vanguard's participation remains to be seen...

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So now my district has to sign a Record Keeping Agreement with Fidelity.

All of that worry about the ISA - and it was only step one.

I hope they do this.

 

Vanguard has signed on - just today - with Omni.

I do not yet know if they require a Record Keeping Agreement.

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Does anyone know a third party administrator that will sign Vanguard's ISA?

Or has anyone's public school district not used a third party administrator and just signed on with

Vanguard and Fidelity?

 

My district uses Omni and they refuse to sign fund company ISAs. I want to use Vanguard or Fidelity or any other

no load fund company. As of right now, only the load bearing fund companies have signed on with Omni.

 

Confidential Planning is an exception to this. I can get low expense funds (Vanguard's 500 index fund for example) from Confidential Planning. But they do charge 0.90% (.75% + .15%). So with no load I will be paying over 1% for a 0.20% Vanguard fund that I used to get for 0.20%.

 

Without a third party administrator I will be left with no choice.

 

 

I have spent countless hours trying to preserve our existing Fidelity direct investment option. After reading this I to fear that the TPA will drop them at the last minute for the same reason. What is interesting is that the TPA never accessed the Record Keeping Services Agreement form from Fidelity. Unfortunately our school district, like most in the state of MN, hired an insurance company to send out the RFPs and is using an insurance company for TPA. My guess is that while we have been assured by the insurance company that we will continue to offer Fidelity direct 403b(7) along with the usual annuity options Fidelity will be pulled off the table at the last moment. This is what happened in the Anoka school district (MN largest school district). The explanation provided was that Fidelity refused to sign the TPA. I’m guessing the insurance industry has come up with a poison pill (TPA agreement) to keep Fidelity and Vanguard out. If our school district representative signs the Record Keeping Services Agreement from the Fidelity can we keep Fidelity or since they have signed with a TPA are they stuck with the potential poison pill? It’s a sad day when the new regs had the unintended outcome of removing the last few remaining direct investment options like Fidelity and Vanguard.

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"If our school district representative signs the Record Keeping Services Agreement from the Fidelity can we keep Fidelity or since they have signed with a TPA are they stuck with the potential poison pill?"

 

Persistence,

You should explain your situation and post this question as a new post - there are many bright people who should be able to answer your question. Another option is to call the IRS. I am sorry, but I can't answer your questions - I would only be guessing.

 

I do suggest you draft a letter - show it to a few people who feel as you do, and see if they will sign it - and then send it to the Board of Ed members and whoever is in charge of this issue in your school. If Fidelity is not available, you can fight to change this in 2009. It won't be over and done with.

 

My guess is that it all depends on what the written plan says. If the written plan is written by the ins company (the TPA) then I am pretty sure you can't use Fidelity unless they say you can. UNLESS the written plan doesn't list vendors. Written plans are allowed to refer to a list of vendors kept separate from the plan itself. This allows for changes to occur more easily - without re-writing the plan. This information is directly from Bob Architect - the IRS's 403(b) lead expert. I listened in on the Teleconference with Mr. Architect on December 4th and he said this.

 

Good luck.

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I posted this under another thread about Fidelity, but will paste it here also - we are having problems with Fidelity too - using the direct platform. I will post back when I find out something more.

 

We are having some problems with utilizing Fidelity also. Our TPA WILL sign their ISA and other documents, but Fidelity is still saying that they don't want us. We have been told - just recently that we can use the "Advisor" platform, but not the "Direct" investment - ie. the entire reason for going with Fidelity as a No Load/Low Fee option. I am sure it is because we are a small district - maybe only 20-30 participants. Seems that we are not worth their time.

 

Our TPA is still talking with Fidelity and there is possibility they may be able to obtain the direct option for us, but, this is a pretty good example of the problems of the 403b - our TPA is willing to sign any and all of their paperwork, and they still are not interested.

 

We do have Vanguard in place and do have direct investment with them. So, it is not like all is lost. Also, we may be able to switch out one of our "Advisor" choices like Oppenheimer, and move Fidelity into that group with American, and then try to pick up T. Rowe Price to go along with Vanguard.

 

Could be worse, but, still dissapointing that Fidelity does not want our business - even on their terms.

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I posted this under another thread about Fidelity, but will paste it here also - we are having problems with Fidelity too - using the direct platform. I will post back when I find out something more.

 

We are having some problems with utilizing Fidelity also. Our TPA WILL sign their ISA and other documents, but Fidelity is still saying that they don't want us. We have been told - just recently that we can use the "Advisor" platform, but not the "Direct" investment - ie. the entire reason for going with Fidelity as a No Load/Low Fee option. I am sure it is because we are a small district - maybe only 20-30 participants. Seems that we are not worth their time.

 

Our TPA is still talking with Fidelity and there is possibility they may be able to obtain the direct option for us, but, this is a pretty good example of the problems of the 403b - our TPA is willing to sign any and all of their paperwork, and they still are not interested.

 

We do have Vanguard in place and do have direct investment with them. So, it is not like all is lost. Also, we may be able to switch out one of our "Advisor" choices like Oppenheimer, and move Fidelity into that group with American, and then try to pick up T. Rowe Price to go along with Vanguard.

 

Could be worse, but, still dissapointing that Fidelity does not want our business - even on their terms.

 

 

How did your TPA and Vanguard come to agreement? And is this ongoing into 2009? And who signed for whom? My TPA ( CPI ) does not want to even consider signing anybody else's form...

 

 

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Our TPA signed with Vanguard. We did hear back from Fidelity, and the only option we have available to us, through them is the "Advisor" option. However, as of today, it does look very optimistic that we will be able to replace one of our other "Advisor" type options (oppenheimer) with T. Rowe Price.

 

So, we should have Vanguard and T. Rowe Price as direct investment options and Fidelity and American as "Advisor" type formats. Then a trio of insurance companies and Pershing Brokerage Account option.

 

These options are for 2009. We are a small (50 teachers k-12) school district and our TPA is working with several other relatively small area school districts. They administer our Health Insurance ( and other schools as well). Think they are basically doing it simply to further strengthen ties to the health insurance area. But, the end result is that they are very open to providing each district with whatever choices they woul like in their plan. For once, a perk to being a small district - they have really focused on what we would like in place as employees.

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Kev,

Who is your TPA? I am trying to assemble a list of more cooperative ones, to shame mine into signing the Vanguard forms... Our TPA is CPI Qualified Plan Consultants.

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elgordo42,

 

At this time Omni has worked out a deal with Fidelity and we can continue using them in 09. Vanguard is also OK, but my district has not made the announcement yet. I think there may be some document the district has to have counsel read through before it will sign.

 

But Omni is as independent as these TPAs can be AND they made this work with Fid and Vang.

Check them out.

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elgordo42,

 

At this time Omni has worked out a deal with Fidelity and we can continue using them in 09. Vanguard is also OK, but my district has not made the announcement yet. I think there may be some document the district has to have counsel read through before it will sign.

 

But Omni is as independent as these TPAs can be AND they made this work with Fid and Vang.

Check them out.

 

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My school district has hired Gatekeeper as our "hold harmless" administrator. Unfortunately I can no longer directly invest with no-load providers such as Fidelity or Vanguard. My choices are insurance companies...

I have two questions and one statement of what I think I need to do.

 

1) 403b ASP is a company that allows me to get into Vanguard and Janus funds (403b ASP has provided management services for 401k plans and now it is getting in the soon to be lucrative 403b plan management). I'm having a hard time finding info. about 403b ASP. On independent sites, I found that their fees are $40 a year plus 0.1% plus the cost of the mutual fund. I could live with that. However, I stumbled across an asset based fee of 1.78% and a consent deferred sales chared of 1% if I keep money in funds for at least 6 years. I am so nervous about hidden fees... Also, there is a 1% fee for having an advisor. Do I have to have an advisor with 403b ASP??

 

2) Gatekeeper offers 14 different vendors, predominately insurance companies or companies like 403b ASP and ING which are middlemen that seem to be getting too big a piece of my pie. Some of these vendors, such as Metropolitan Life Insurance Co, are in financial trouble. Now that my District has limited my options for investments, could my district have some fudiciary responsibility for the bad financial decisions of its vendors?

 

My plan is to make sure that I do NOT roll my current 403b monies into one of these robber-barrons. I will max my ROTH IRA and look into a 457 through my state. Our distict has a poor history of trying to manage our 403b accounts. They signed up with Horizon Benefit as a hold harmless company that also sold investment products and was found to embezzle 403b monies. Needless to say, we got our District to drop Horizon Benefit after a year and a half of meetings. I understand that the current situation is different, but I'm tempted to find my legal options...

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