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sullivanke

403basp

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Just thought I would drop an update. In workign with our districts Business Adminstrator, we approved adding 403basp as a option for employees. I know there has been some controversy with this platform over the last few weeks. People comlpaining regarding the inability to contact, speed of deposits etc.. However, I have enrolled with them and in speaking with them, feel they have ironed out these glitches. With the IRS changes, they were swamped big time. They currently hold 30% of the nations 403b's and they received a majority of these accounts in a VERY SHORT time period. To accomodate this they have quadrupled there call servive and although someitmes still timely to speak to someone, if you call and wait, you will be able to speak to someone.

Our district offers the "open platform" availability giving us access to 20,000+ funds. Including Vanguard, and Fidelity. I simply chose a Vanguard Target Retirement date Fund 2040 based on its allocation and its small 0.19 ER. WHen you tack on 403basp's .10 a total of 0.29 for expenses is clearly not to shabby....Is it better than Fidelity or Vanguard Direct? Of Course not but given the circumstances I think we should all be somewhat pleased with this stride in the right direction. This platform is willing and able to meet any requirements that your district may throw at them so there is no real debate there.....

Anyway, I am not trying to endorse this company, have no affiliation (see my prior posts, I have actually shown my doubts before as well) just thought Ide share my update and current feelings.......

Oh yeah also, they do charge the 40$/yr fee as well. and a 75$ charge for loans/hardships but they are extremely TRANSPARENT and upfornt with ALL costs. You do not need to worry about and hidden fees. etc.

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sullivanke,

 

Keep us posted. 403bASP also offeres 457b & 401a plans, which I am trying to add to our current 457 line up. It has been a long road to this point and adding a true low cost provider is a long term goal of mine (with a minority of other employees). I have told all of our providers that anything over 50bps (total cost) for an index portfolio is a rip off! As I stated before, our cheapest provider offers index funds for around 100-110 bps (total cost).

 

I hope 401/403/457ASP can make some corrections/service adjustments and it sounds like they are. As you stated, they have very transparent fees and offer a low cost option for smaller plans like ours.

 

 

My wife's district uses JEM as a TPA (there website needs a lot of work, and I have service issues with them as well, but they offer Vanguard and others). They probably had a flood of new business as well as 403bASP!.

 

GerryL.

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with your wifes plan through JMA, what is the total cost she is incurring to access Vanguard Funds?

 

I didnt know that 403basp offers 457's as well>?

 

THANKS>

 

By the way, with more people were more active on this board. Seems like a lot of people just reading but not really posting, or just posting links to articles (Which I enjoy, just wish there was more communication/dialogue. Perhaps this is representative of the educaotrs not being well-informed in area and just trying to read up)

 

 

 

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JEM charges $2/participant/month. The participant fee is paid by the district and offered through CalSTRS.

 

CalSTRS offers 403(b) plan administration services to public school districts and other education agencies through a contract with a third party administrator (TPA). The TPA is required to be totally independent of any 403(b) sales in the employer’s plan, including through any affiliated companies. CalSTRS selected JEM Resource Partners through a competitive proposal process to offer the 403(b) TPA services. These services are a part of the CalSTRS 403bComply program.

 

The underlying fund fees apply as well.

 

Here is the link.

http://www.calstrs403bcomply.com/publicsite/

 

 

As I mentioned, their web site is terrible. At this time, it is hard to download statements, impossible to change allocations or increase withholdings, etc. The district office has the necessary forms to make changes the old fashioned way via mail.

 

So, the lack of web access is not a big deal for now!

 

I'll take the low cost any day! Hope that helps.

 

Gerry L.

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Sully 403asp is improving. First pay period for we was 40 days to post they have gotten it down to about 10 still a little slow for my liking. It could be Gatekeepers Fault as Well

 

Rich

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