Jump to content
Guest Joel L Frank

Bleeding In New Jersey Will Soon Stop

Recommended Posts

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

 

 

Please explain the use of "piece" as your last word in sentence two.

 

Joel

Share this post


Link to post
Share on other sites

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

 

 

Please explain the use of "piece" as your last word in sentence two.

 

Joel

 

 

You basically provided 2 pieces of information. The first was about the SACT being terminated. The second was about all public employees in NJ who belong to a state administered defined benefit retirement system being allowed to contribute to ACTS (quoted above). I don't care so much about the first piece of info but I would like to find info on the second piece. Something this important should be documented somewhere. I will give Ed Wade a call tomorrow as you suggested but I am not getting a warm fuzzy feeling about this one. Maybe you could share how you came about this info.

Share this post


Link to post
Share on other sites
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

 

 

Please explain the use of "piece" as your last word in sentence two.

 

Joel

 

 

You basically provided 2 pieces of information. The first was about the SACT being terminated. The second was about all public employees in NJ who belong to a state administered defined benefit retirement system being allowed to contribute to ACTS (quoted above). I don't care so much about the first piece of info but I would like to find info on the second piece. Something this important should be documented somewhere. I will give Ed Wade a call tomorrow as you suggested but I am not getting a warm fuzzy feeling about this one. Maybe you could share how you came about this info.

 

 

The SACT 403(b) will be terminated with all SACT/403(b) account holders' balances transferred tax free to any one of the ACTS carriers. The choice of a carrier will be up to the SACT 403(b) owner. The transition will take place on or about July 1, 2013. The requirement to contribute to the SACT 403(b) is membership in any state administered retirement system AND employment by a public education institution. After SACT 403(b) is terminated the requirements to participate in the ACTS will be the same; i.e., membership in a state administered retirement system AND employment by a public education institution. In other words ACTS stands in the shoes of the SACT 403(b) on or about July 1, 2013. I received this information from Ed Wade.

 

Of Note: The Alternate Benefit Program of NJ is for the public higher education community. This group has had the ACTS for quite some time and as of July 1, 2013 it will be extended to the k-12 crowd. This is great, great news for just one reason: TIAA-CREF is one of the ACTS carriers with all the others being of the commission based variety.

 

Best,

Joel

Share this post


Link to post
Share on other sites

Hi Joel,

Thanks so much for this information! I've been trying to get a low cost provider added to my district's list for a year now, and am still struggling, so this is great news!!

 

Can you tell me why you suggested that I sign up for SACT now? Why not wait until the ACTS program is open to everyone in 2013?

Is there any advantage to signing up now?

 

Thank you.

Share this post


Link to post
Share on other sites
Guest Joel L Frank

Hi Joel,

Thanks so much for this information! I've been trying to get a low cost provider added to my district's list for a year now, and am still struggling, so this is great news!!

 

Can you tell me why you suggested that I sign up for SACT now? Why not wait until the ACTS program is open to everyone in 2013?

Is there any advantage to signing up now?

 

Thank you.

 

 

The SACT is a no-cost-to-you investment. The expense ratio is zero. The SACT statute requires the State to pay all costs.

 

Having said that, it's just a S&P 500 type common stock fund---there is no other fund choices. So, for the equity portion of your 403(b) portfolio the SACT is a no-brainer. If you join now the amount you pay in can be transferred to the ACTS (i.e., TIAA-CREF) on or about July 1, 2013-----or you can just wait.

 

Joel

Share this post


Link to post
Share on other sites
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

 

Please explain the use of "piece" as your last word in sentence two.

 

Joel

 

You basically provided 2 pieces of information. The first was about the SACT being terminated. The second was about all public employees in NJ who belong to a state administered defined benefit retirement system being allowed to contribute to ACTS (quoted above). I don't care so much about the first piece of info but I would like to find info on the second piece. Something this important should be documented somewhere. I will give Ed Wade a call tomorrow as you suggested but I am not getting a warm fuzzy feeling about this one. Maybe you could share how you came about this info.

 

Mike,

 

I assume you are now "getting a warm fuzzy feeling about this one"

 

Joel

Share this post


Link to post
Share on other sites

I have not been able to verify that SACT is being folded into ACTS. I have found no relevant legislation. I have pursued this with my contacts in Trenton and they were not able to verify this either.

 

The original post does make an interesting point: that K-12 faculty and staff should have access to the same low-cost provider as county college employees.

 

If anyone has been able to verify please share your information.

Share this post


Link to post
Share on other sites
Guest Joel L Frank

Jeff and Mike:

 

Have you spoken with Ed Wade at 609-777-1783?

 

Joel

Share this post


Link to post
Share on other sites

Joel,

 

I contacted Ed Wade through email. He said, "the date of the SACT to ACTS transition has yet to be determined." He also mentioned that the state would give advanced noticed to SACT participants so they could choose their new vendors in a timely fashion.

 

I think it is important that Association members push their locals to inform the general membership and see to it that the school boards and their TPAs enroll interested people in SACT/ACTS.

 

My employee handbook says nothing about SACT and it is not on the 403(b) vendor list. I don't remember it being mentioned on the original TPAF enrollment form, either.

 

Thanks for the information.

 

Jeff

Share this post


Link to post
Share on other sites
Guest Joel L Frank

 

 

Joel,

 

I contacted Ed Wade through email. He said, "the date of the SACT to ACTS transition has yet to be determined." He also mentioned that the state would give advanced noticed to SACT participants so they could choose their new vendors in a timely fashion.

 

I think it is important that Association members push their locals to inform the general membership and see to it that the school boards and their TPAs enroll interested people in SACT/ACTS.

 

My employee handbook says nothing about SACT and it is not on the 403(b) vendor list. I don't remember it being mentioned on the original TPAF enrollment form, either.

 

Thanks for the information.

 

Jeff

Fact: The New Jersey Education Association first learned, from this thread, about the SACT to ACTS transition.

 

State law makes the SACT 403(b) Plan available to every employee that works for a k-12 school district in New Jersey. Since its inception, in 1963, it has been administered by the same state agency that administers the Teachers' Pension and Annuity Fund, namely, the NJ Division of Pensions and Benefits. It started out with one investment choice, a common stock portfolio and after 50 years still offers the one investment choice, a common stock portfolio.

 

In the 1960s and 70s and 80s and 90s and 2000s, rather than lobby the Division of Pensions and Benefits for a SACT diversified investment menu, the New Jersey Education Association was busy selling advertising space in its monthly periodicals to the same high commission-based broker/dealers that were selling their variable annuities and mutual funds to the dues paying members of the New Jersey Education Association, the public educators of New Jersey. NOW, THAT'S ARROGANCE!!

Share this post


Link to post
Share on other sites

Joel,

Any updates on this? It looks like nothing has changed in over a year. July 1, 2013 has come and gone. My son's district still has just the usual sharks on the vendor list.

Thanks,

Mike

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)

Share this post


Link to post
Share on other sites
Guest Joel L Frank

Hi Mike,

 

Rest assured I am the most frustrated of all. May I suggest you call Ed Wade; Assistant Plan Administrator for the Defined Contribution Plans at: 609-777-0887.

 

Please let us know what he says.

 

Best,

 

Joel

Share this post


Link to post
Share on other sites

I tried calling Ed Wade at 609-777-0887-no luck

 

-it directs you press #2 for SACT. After waiting for 20 minutes I spoke with a woman who did not know anything about SACT. Ed seems to be mia

Share this post


Link to post
Share on other sites
Guest Joel L Frank

I tried calling Ed Wade at 609-777-0887-no luck

 

-it directs you press #2 for SACT. After waiting for 20 minutes I spoke with a woman who did not know anything about SACT. Ed seems to be mia

I am not surprised at all. Most pubic workers in this state do not know of the very existence of the SACT. Have you contacted the NJEA?

 

Joel

Share this post


Link to post
Share on other sites
Guest Joel L Frank

2800 views and no one reports back that they spoke to the NJEA, their statewide bargaining agent. Why are people sooooo pathetic?

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...

×
×
  • Create New...