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febarnes

Valic/ Lawsuit

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While VG is still offers its funds to some 403b plans it has drastically reduced the number of insitutions that it services. Since the beginning of this year a number of posters on this board have noted that VG had withdrawn as a provider for their 403b plan because of issues in providing information required under the IRS regs to the plan administrator.

 

 

Intruder,

Slight correction, we have been complaining about SD's policies that keep the likes of VG from signing up as a 403b vender for years, not just this year.

Where is the evidence that VG "has drastically reduced the number of institutions?" Do you have a number before this year compared to 2009?

 

 

My evidence is all of the posters who have complained in the last year and continue to post as of July that VG is no longer directly available as an option under their 403b plan because the IRS regs made reporting and plan administration too expensive or incompatablie with VG policy.

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the IRS regs made reporting and plan administration too expensive or incompatablie with VG policy.

 

 

Our 457 plan has 3 VG funds which are the cheapest choices (under 60 bps). Its not impossible to have VG and have VALIC as the administrator. But thats the 457.

 

IMO, the 403b is totally flawed and unfixable for the moment. Yesteryear, it was the outrageous hold harmless agreements demanded of low fee custodial accounts with mutual fund companies by SDs and now its the outrageous high fees and reporting demanded by the IRS with the full support of the insurance industry. They are laughing all the way to the bank.

 

 

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the IRS regs made reporting and plan administration too expensive or incompatablie with VG policy.

 

 

Our 457 plan has 3 VG funds which are the cheapest choices (under 60 bps). Its not impossible to have VG and have VALIC as the administrator. But thats the 457.

 

IMO, the 403b is totally flawed and unfixable for the moment. Yesteryear, it was the outrageous hold harmless agreements demanded of low fee custodial accounts with mutual fund companies by SDs and now its the outrageous high fees and reporting demanded by the IRS with the full support of the insurance industry. They are laughing all the way to the bank.

 

 

Steve,

We have 4 quality funds in our plan. A VG, 2 American funds and a Barron's fund. We have an agreement with our vendor to change our lineup at our discretion. This is one thing I like about our plan. However, it is still too expensive. I will be approaching our new super about the expense ratios. By the way, I appreciate your due dilligence on this board.

Frank

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