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mandmclark

Octfcu And What Are My Options?

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I am a 5th year teacher and plan on begining to contribute my maximum to either a 457 or 403(b) plan starting this year. My District uses the OCTFCU as it's administrator. When I went there I was given a list of all of my choices for providers and was unhappy to see no companies like vangaurd etc...

 

I asked if I could go directly to Vangaurd and set up a 457 or 403(b) with them. I was told that I could only go through the credit union.

 

Is there any way to set up my 403(b) or 457 directly with Vangaurd and my district and still have all the benefits of pre tax withdrawl?

 

Also, if I do go with the OCTFCU, does anyone have any recommendations as to the safest, least costly, and easiest fund to go into with the intention of transfering it out anually to a Vangaurd or like account? My district is Anaheim Union High

 

Thank you for your responses.

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You should call Vanguard small business 1-800-662-2003 and inquire. They should be able to steer you in the right direction.

 

If your payroll department agrees, it would then be tax deductible contribution where payroll would forward your contribution to Vanguard.

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mandmclark,

 

The following link will provide the approved provider list for your district. Vanguard will only sign a modified hold harmless with OCTFCU which no district has yet approved. After looking at the list I see to good options - Fidelity and USAA. I would go with Fidelity. You can get the enrollment forms for fidelity at http://www.mysavingsatwork.com/atwork.htm - the lower left of the screen - click on enroll. You will need to call fidelity to get the group plan number for your district (and to verify they are available). You will then fill out the Salary Reduction Agreement from OCTFCU's website and submit it to OCTFCU - the Salary Reduction Agreement is at http://www.octfcu.org/retirementbuilder/forms/403_Salary_Reduction_Agreement.pdf.

 

 

http://www.octfcu.org/retirementbuilder/forms/anaheim_union_hsd.pdf - Approved Provider List for Anaheim Union.

 

Good luck with this - Fidelity just lowered there index fund fees to .10% - not bad!

 

ScottyD

 

 

 

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Scotty,

Thanks for the great news about Fidelity's low fee on their index fund. I have money in Fidelity's cash account and instead of transfering it to Vanguard, I might as well use Fidelity's .10% fee!! Is that for real? Watch out Vanguard.

Steve

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Due to recent changes in 403b rules, my district just changed their Third Party Administrator (TPA) to be OCTFCU. Vanguard was on the approved list with our previous administrator (LACOE) but is not on OCTFCU's approved list. I asked OCTFCU if they had contacted Vanguard in regards to getting an Information Sharing Agreement signed with them. OCTFCU said they had sent a request to Vanguard (and other companies) when they found out about the IRS changes. For Vanguard, they said they sent it to the TSA or Retirement department but Vanguard has a different version of the Information Sharing Agreement that they want OCTFCU to sign. Apparently neither party wants to sign the others' agreement. OCTFCU says Vanguard's form has clauses in it to protect themselves. However, a Vanguard rep told me several months ago that these forms tend to be fairly standardized with everyone pretty much using the same form with their own logo on the top.

 

When I wanted to sign up for my 403b plan administered through LACOE, Vanguard was not on the list at that time. Since I already had accounts at Vanguard, I wrote to their CEO and asked if they would sign a hold-harmless agreement with LACOE. I explained how it was to their benefit since one agreement with LACOE would make Vanguard available to the employees of about 80 school district, that I estimated.

 

These things don't change overnight and without action from the correct people. It seems to me that it is our turn to contact Vanguard again and ask them to sign the Information Sharing Agreement with OCTFCU. (The Information Sharing Agreement supersedes the previous Hold Harmless Agreement.) I have just written another letter to the Vanguard CEO and encourage you to do so too. I told him that my school district recently changed their Third Party Administrator to OCTFCU and since Vanguard is not on the list of OCTFCU approved 403b vendors, I am unable to continue contributions to my Vanguard 403b account. I also explained that OCTFCU is the administrator for school districts in 4 counties (per their web site). I tried to show them how it is in their interest to sign an agreement with OCTFCU. Since that would make many of us happy, here is whom I think you should write to:

 

Mr. Jack Brennan

Chairman and CEO

Vanguard Group

PO Box 876

Valley Forge, PA 19482

 

Please write to Vanguard if you want to have a 403b account there and ask them to sign with OCTFCU or why they won't. After they sign, we'll let you know on this thread. If we hear from them why they won't sign, we'll post that too.

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Celia:

 

If you check the recent posts under "information sharing agreements and the loss of a good 403b plan" you will discover that VGs insistance on using its own info sharing agreement is a big negative with becoming included on the list of 403b providers for SD under the final IRS regs especially where TPA are retained to administer the plan. As you will note there are many different views on what should be done.

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Celia,

Thanks so much for sharing. I applaud your efforts. Pressure needs to be put on all stake holders, the SD, unions and VG.

As intruder likes to lecture, he is correct about having many different POV. But your view is the most effective.

Lets get to work.

Thanks again,

Steve

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I think Vanguard can be flexible if it is in their interest. After all, I was instrumental (or at least I think I was) in getting them to sign the old Hold Harmless Agreement with LACOE when LACOE said they wouldn't sign. When you can't get something to work one way, you need to try another approach (the CEO approach in this case).

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I think Vanguard can be flexible if it is in their interest. After all, I was instrumental (or at least I think I was) in getting them to sign the old Hold Harmless Agreement with LACOE when LACOE said they wouldn't sign. When you can't get something to work one way, you need to try another approach (the CEO approach in this case).

 

 

VG refuses to sign the LAUSD 403b plan Hold Harmless agreement which has been signed by 144 other providers. What am I missing.

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VG refuses to sign the LAUSD 403b plan Hold Harmless agreement which has been signed by 144 other providers. What am I missing.

LAUSD and LACOE are different school districts, LAUSD being the district for the city of LA, LACOE pretty much covers the surrounding cities in the LA county. Is that the confusion you had, Intruder?

 

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Hello. I, too, have tried to get TRowe Price and Vanguard to be added to my county's list and

OCTFCU can't seem to get with them to resolve the documentation issue. I finally spoke with the VP of

OCTFCU and expressed my dissatisfaction with them and suggested that he work on resolving the problem so VG and TRP are on the same page with OCTFCU and become available as investment options. We will have to wait and see what happens.

 

Perhaps others would like to contact this VP to express you desire for OC to resolve this problem. His name is Darin Woinarowicz.

 

In the meantime, I invest only in Fidelity for the 403b since that, in my opinion, is the best option available in our district.

 

Hope this helps.

Edy

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VG refuses to sign the LAUSD 403b plan Hold Harmless agreement which has been signed by 144 other providers. What am I missing.

LAUSD and LACOE are different school districts, LAUSD being the district for the city of LA, LACOE pretty much covers the surrounding cities in the LA county. Is that the confusion you had, Intruder?

 

I dont understand why there are overlapping SD entites for LA-LA land. I guess is that's why a TV show used to end with.. "for the City and County of Los Angeles." At least NYC is one city which comprises 5 distinct geographic/legal counties but has only one NYC Department of Ed for all 5 counties.

 

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There is no overlapping. LACOE and LAUSD have separate school boards and administration.

 

But do they exist in the same geographic area. Or are you saying there is the City of LA and a separate county of LA? Like I said NYC is easy to understand: Manhattan is New York County ("Death wish"/"French Connection"), Staten Island is Richmond County ("Working G*I*R*L"), Brooklyn is Kings County ("On the Waterfront"), Queens is Queens county ("Wiseguys") and the Bronx is Bronx County ("A Bronx Tale", "Fort Apache").

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