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JudyS

Montoya Vs. New York State Teachers

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All --

 

There's got to be something here that I don't understand. Why do these attorneys keep bringing these suits in a manner suggesting that 403bs fall under ERISA when they clearly do NOT? What am I missing? The NEA lawsuit was dismissed at least partly for the same reason.

 

This website specifically addresses several unique audiences. Why not attorneys? Can't there be a workshop of something that would bring together ideas to increase the likilihood of not losing these suits and not having them dismissed? This is so SAD!

 

JudyS

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All --

 

There's got to be something here that I don't understand. Why do these attorneys keep bringing these suits in a manner suggesting that 403bs fall under ERISA when they clearly do NOT? What am I missing? The NEA lawsuit was dismissed at least partly for the same reason.

 

This website specifically addresses several unique audiences. Why not attorneys? Can't there be a workshop of something that would bring together ideas to increase the likilihood of not losing these suits and not having them dismissed? This is so SAD!

 

JudyS

 

 

Hi Judy,

 

They use ERISA because there is no other way and there is precedent from 401ks. They try and argue on the merit that ERISA clearly spells out, but there is nothing illegal in the 403bs that annuities should be explained more clearly to educations. The NEA case was written up brilliantly and showed clearly how the union was profiting from steering NEA members to extremely costly 403b products. But there is no regulation that says, YOU CAN"T do that. NEA and AFT are shameless.

There has never been, nor will there be fiduciary responsibility with 403b in the near future. We have to be the fiduciary. Even 457b plans are not under ERISA. You would think that after 50 years, there would be better plans. But it seems to be just focused on 403b with K12 school districts. Other employers such as colleges and universities, junior colleges, state and local governments and even the federal employees have good 403b 457b plans. Its partly the culture of K12, the unions and school administration that allows this slime to continue.

 

Steve

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Steve --

Sure, I understand that ERISA has some valuable provisions that some might see as "bendable" to 403(b)s and 457s, but the issue for me is that fact that there are attempts to HIDE the fees, to make them nearly invisible, or present them as "only to be expected", leaving the participant ignorant of the notion that accounts can be had WITHOUT most of those fees. In fact, I had one VERY sincere (snicker here, please)salesshark imply that I should be pleased, that these wrap fees were usually only available on accounts for wealthy folk.

 

It's the deception, the hiding, the unavailability of information that seems a reasonable basis for a lawsuit. To legally naive little old me, anyway.

 

JudyS

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