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Guest Joel L Frank

Bleeding In New Jersey Will Soon Stop

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Guest Joel L Frank

The 50 year old monumental breach of fiduciary responsibility on the part of the State of New Jersey will come to an abrupt end on July 1, 2013 when the Supplemental Annuity Collective Trust (SACT), with its solitary investment option, is terminated. At that time the SACT participants will become participants in the Additional Contributions Tax Sheltered Program (ACTS).

 

ACTS is a list of 403(b) investment providers approved by the NJ Division of Pensions and Benefits. Except for the TIAA-CREF, the entire list of providers are of the commission based variety. For decades ACTS has been available to the public higher education community in New Jersey. SACT participants will be required to transfer their account balances, tax-free, to any provider on the list. It goes without saying TIAA-CREF will do very well with this new access to the K-12 community.

 

ACTS CARRIERS

 

The six designated carriers are:

 

VALIC

 

AXA Financial (Equitable)

 

The Hartford

 

ING Financial Insurance and Annuity Company

 

MetLife (formerly Travelers/CitiStreet)

 

Teachers Insurance and Annuity Association/College Retirement Equities Fund (TIAA/CREF)

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When I read this post, I kept wishing there were a "Like" button.

 

Congratulations to New Jersey teachers on fighting for and gaining this benefit, and especially to Joel and the others who fought the fight for better investment options for themselves and their colleagues. You are an inspiration to those of us in other states and districts who are still lobbying for low-cost 403b and 457 providers. Your success makes the rest of us believe that change *is* really possible. Way to go, Joel & New Jersey teachers!

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Guest Joel L Frank

Is this going to be for all schools, or do we have to get each individual school to accept them as a vendor? Getting a school to accept a vendor is not easy.

 

To be eligible for the SACT, the law requires you to belong to a State-administered Defined Benefit retirement system and be employed by a public education institution. If you meet these two requirements the law requires your employer to sign the SACT Salary Reduction Agreement.

 

Tip: Sign up for the SACT asap. Then, in a few months you will be notified about the SACT transition to the ACTS. At that time you will be able to elect TIAA-CREF not only for your SACT accumulation but for all future contributions.

 

Assuming you never saved with the SACT and do not plan to, when the transition of the SACT to the ACTS Program is completed next year all public education employees in the State of New Jersey who belong to a State administered Defined Benefit retirement system will, by law, be allowed to contribute to the ACTS Program and thus, to TIAA-CREF.

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Please excuse my ignorance. NJ public school teachers that belong to the pension system will be eleible foe TIAA-CREF next year as a 403b?

 

I just spent many months lobbying and finally getting Vanguard in our district. I don't think I could get our school to even consider adding another program on its own even though some at my district would love to get TIAA-CREF. But if this is a right because we are in the pension system, we could probably get it done.

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Guest Joel L Frank

Please excuse my ignorance. NJ public school teachers that belong to the pension system will be eligible for TIAA-CREF next year as a 403b?

 

ANSWER: YES

 

I just spent many months lobbying and finally getting Vanguard in our district. I don't think I could get our school to even consider adding another program on its own even though some at my district would love to get TIAA-CREF. But if this is a right because we are in the pension system, we could probably get it done.

 

 

THERE IS NOTHING TO "GET DONE". BY LAW YOU ARE NOW ENTITLED TO CONTRIBUTE TO THE SACT. SACT WILL BE ABSORBED BY THE ACTS PROGRAM NEXT YEAR. THE ACTS PROGRAM INCLUDES A FEW INVESTMENT PROVIDERS, ONE OF WHICH IS TIAA-CREF. ALL THE OTHERS ARE OF THE COMMISSION BASED VARIETY. BY LAW YOU WILL BE ENTITLED TO ELECT ANY INVESTMENT PROVIDER ON THE ACTS LIST. FOR GOOD AND OBVIOUS REASONS TIAA-CREF SHOULD BE CHOSEN.

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Guest Joel L Frank

When I read this post, I kept wishing there were a "Like" button.

 

Congratulations to New Jersey teachers on fighting for and gaining this benefit, and especially to Joel and the others who fought the fight for better investment options for themselves and their colleagues. You are an inspiration to those of us in other states and districts who are still lobbying for low-cost 403b and 457 providers. Your success makes the rest of us believe that change *is* really possible. Way to go, Joel & New Jersey teachers!

 

 

Tracy,

 

Thank you for your kind words.

 

Joel

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Please excuse my ignorance. NJ public school teachers that belong to the pension system will be eligible for TIAA-CREF next year as a 403b?

 

ANSWER: YES

 

I just spent many months lobbying and finally getting Vanguard in our district. I don't think I could get our school to even consider adding another program on its own even though some at my district would love to get TIAA-CREF. But if this is a right because we are in the pension system, we could probably get it done.

 

 

THERE IS NOTHING TO "GET DONE". BY LAW YOU ARE NOW ENTITLED TO CONTRIBUTE TO THE SACT. SACT WILL BE ABSORBED BY THE ACTS PROGRAM NEXT YEAR. THE ACTS PROGRAM INCLUDES A FEW INVESTMENT PROVIDERS, ONE OF WHICH IS TIAA-CREF. ALL THE OTHERS ARE OF THE COMMISSION BASED VARIETY. BY LAW YOU WILL BE ENTITLED TO ELECT ANY INVESTMENT PROVIDER ON THE ACTS LIST. FOR GOOD AND OBVIOUS REASONS TIAA-CREF SHOULD BE CHOSEN.

 

 

Hi Joel

 

I sense your frustration in your reply to me. I am at the end of my teaching career and have listened to, and trusted the 403b sales people for the past 30 years. I have recently started researching 403b investments and came across this site an have read all your postings as well as others. I am trying to make things better for the younger faculty and I campaigned for bringing in Vanguard to give us lower rates with no early surrender fees. I want to make sure I give the correct information you posted on this thread and appreciate the work and info you have provided and that is why I joined the forum and asked you questions.

 

I look forward to this taking place so we can stop being ripped off. The next generation needs a good retirement deal as we have lost so much in NJ since the reign of our current governor.

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Guest Joel L Frank

Please excuse my ignorance. NJ public school teachers that belong to the pension system will be eligible for TIAA-CREF next year as a 403b?

 

ANSWER: YES

 

I just spent many months lobbying and finally getting Vanguard in our district. I don't think I could get our school to even consider adding another program on its own even though some at my district would love to get TIAA-CREF. But if this is a right because we are in the pension system, we could probably get it done.

 

 

THERE IS NOTHING TO "GET DONE". BY LAW YOU ARE NOW ENTITLED TO CONTRIBUTE TO THE SACT. SACT WILL BE ABSORBED BY THE ACTS PROGRAM NEXT YEAR. THE ACTS PROGRAM INCLUDES A FEW INVESTMENT PROVIDERS, ONE OF WHICH IS TIAA-CREF. ALL THE OTHERS ARE OF THE COMMISSION BASED VARIETY. BY LAW YOU WILL BE ENTITLED TO ELECT ANY INVESTMENT PROVIDER ON THE ACTS LIST. FOR GOOD AND OBVIOUS REASONS TIAA-CREF SHOULD BE CHOSEN.

 

 

Hi Joel

 

I sense your frustration in your reply to me. I am at the end of my teaching career and have listened to, and trusted the 403b sales people for the past 30 years. I have recently started researching 403b investments and came across this site an have read all your postings as well as others. I am trying to make things better for the younger faculty and I campaigned for bringing in Vanguard to give us lower rates with no early surrender fees. I want to make sure I give the correct information you posted on this thread and appreciate the work and info you have provided and that is why I joined the forum and asked you questions.

 

I look forward to this taking place so we can stop being ripped off. The next generation needs a good retirement deal as we have lost so much in NJ since the reign of our current governor.

 

 

You are to be commended for fighting for The Vanguard Group for your colleagues. They will soon be able to choose The Vanguard and or TIAA-CREF---that's a problem all of us should have.

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Please excuse my ignorance. NJ public school teachers that belong to the pension system will be eligible for TIAA-CREF next year as a 403b?

 

ANSWER: YES

 

I just spent many months lobbying and finally getting Vanguard in our district. I don't think I could get our school to even consider adding another program on its own even though some at my district would love to get TIAA-CREF. But if this is a right because we are in the pension system, we could probably get it done.

 

 

THERE IS NOTHING TO "GET DONE". BY LAW YOU ARE NOW ENTITLED TO CONTRIBUTE TO THE SACT. SACT WILL BE ABSORBED BY THE ACTS PROGRAM NEXT YEAR. THE ACTS PROGRAM INCLUDES A FEW INVESTMENT PROVIDERS, ONE OF WHICH IS TIAA-CREF. ALL THE OTHERS ARE OF THE COMMISSION BASED VARIETY. BY LAW YOU WILL BE ENTITLED TO ELECT ANY INVESTMENT PROVIDER ON THE ACTS LIST. FOR GOOD AND OBVIOUS REASONS TIAA-CREF SHOULD BE CHOSEN.

 

 

Hi Joel

 

I sense your frustration in your reply to me. I am at the end of my teaching career and have listened to, and trusted the 403b sales people for the past 30 years. I have recently started researching 403b investments and came across this site an have read all your postings as well as others. I am trying to make things better for the younger faculty and I campaigned for bringing in Vanguard to give us lower rates with no early surrender fees. I want to make sure I give the correct information you posted on this thread and appreciate the work and info you have provided and that is why I joined the forum and asked you questions.

 

I look forward to this taking place so we can stop being ripped off. The next generation needs a good retirement deal as we have lost so much in NJ since the reign of our current governor.

 

 

You are to be commended for fighting for The Vanguard Group for your colleagues. They will soon be able to choose The Vanguard and or TIAA-CREF---that's a problem all of us should have.

 

 

 

That is great news Joel. I work in a district of roughly 150 teachers. Vanguard was just approved as a 403b vendor once again. It will be nice to have two good options in the district. The main problem we face is that the AXA representative is in our school a few times a month and really does a good job at establishing relationships with the teachers in the district. So must of the teachers choose AXA.

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Guest Joel L Frank

Please excuse my ignorance. NJ public school teachers that belong to the pension system will be eligible for TIAA-CREF next year as a 403b?

 

ANSWER: YES

 

I just spent many months lobbying and finally getting Vanguard in our district. I don't think I could get our school to even consider adding another program on its own even though some at my district would love to get TIAA-CREF. But if this is a right because we are in the pension system, we could probably get it done.

 

 

THERE IS NOTHING TO "GET DONE". BY LAW YOU ARE NOW ENTITLED TO CONTRIBUTE TO THE SACT. SACT WILL BE ABSORBED BY THE ACTS PROGRAM NEXT YEAR. THE ACTS PROGRAM INCLUDES A FEW INVESTMENT PROVIDERS, ONE OF WHICH IS TIAA-CREF. ALL THE OTHERS ARE OF THE COMMISSION BASED VARIETY. BY LAW YOU WILL BE ENTITLED TO ELECT ANY INVESTMENT PROVIDER ON THE ACTS LIST. FOR GOOD AND OBVIOUS REASONS TIAA-CREF SHOULD BE CHOSEN.

 

 

Hi Joel

 

I sense your frustration in your reply to me. I am at the end of my teaching career and have listened to, and trusted the 403b sales people for the past 30 years. I have recently started researching 403b investments and came across this site an have read all your postings as well as others. I am trying to make things better for the younger faculty and I campaigned for bringing in Vanguard to give us lower rates with no early surrender fees. I want to make sure I give the correct information you posted on this thread and appreciate the work and info you have provided and that is why I joined the forum and asked you questions.

 

I look forward to this taking place so we can stop being ripped off. The next generation needs a good retirement deal as we have lost so much in NJ since the reign of our current governor.

 

 

You are to be commended for fighting for The Vanguard Group for your colleagues. They will soon be able to choose The Vanguard and or TIAA-CREF---that's a problem all of us should have.

 

 

 

That is great news Joel. I work in a district of roughly 150 teachers. Vanguard was just approved as a 403b vendor once again. It will be nice to have two good options in the district. The main problem we face is that the AXA representative is in our school a few times a month and really does a good job at establishing relationships with the teachers in the district. So must of the teachers choose AXA.

 

 

Over many decades of eating those free doughnuts you get fat and your 403(b) balance winds up much thinner than it otherwise would. Those "free" doughnuts are hurting your physical AND financial health big time. Just say, no thank you and sign up for Vanguard and or ACTS/TIAA-CREF.

 

Of Note: AXA is one of the six carriers approved by the ACTS.

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The main problem we face is that the AXA representative is in our school a few times a month and really does a good job at establishing relationships with the teachers in the district. So must of the teachers choose AXA.

 

 

Hi Cguinta1,

We have had good success in updating district policy that prevents vendors from using teachers school mail for their hideous flyers and business cards, making presentations at lunch or after school or having uninvited agents going into classrooms before or after class time interrupting what teachers are supposed to do, prepare for students. The new 2009 IRS Regs says that districts must take more responsibility for monitoring the 403b.

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all public education employees in the State of New Jersey who belong to a State administered Defined Benefit retirement system will, by law, be allowed to contribute to the ACTS Program and thus, to TIAA-CREF.

 

 

Joel,

Do you have any additional information or a source for the above? I don't care much about the SACT to ACTS transition but I am more interested in the ACTS becoming available to all public education employees piece. I could only find lots of info about it being available to the higher education community.

Thanks, Mike

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Guest Joel L Frank

all public education employees in the State of New Jersey who belong to a State administered Defined Benefit retirement system will, by law, be allowed to contribute to the ACTS Program and thus, to TIAA-CREF.

 

 

Joel,

Do you have any additional information or a source for the above? I don't care much about the SACT to ACTS transition but I am more interested in the ACTS becoming available to all public education employees piece. I could only find lots of info about it being available to the higher education community.

Thanks, Mike

 

Mike,

 

For the specifics you can get a call into Ed Wade at: 609-777-1783.

 

Joel

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