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Guest Joel L Frank

457(B) Governmental Plans In New Jersey

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Guest Joel L Frank

The Additional Contributions Tax Sheltered Program of the New Jersey Division of Pensions and Benefits (ACTS) is the 403(b) Program offered to New Jersey's public higher education educators. Currently there are only about a dozen or so participating employers. The ACTS Program offers a menu of seven Investment Providers. The Teachers Insurance and Annuity Association-College Retirement Equities Fund (TIAA-CREF) stands out as the only one that is no-load de minimus cost. On or about July 1, 2013 the list of participating employers will grow by about 600 when the State's school districts will be added. This is great news for the vast majority of New Jersey public educators---the public school teachers of New Jersey.

 

Having said that, I cannot report that the same great news applies to 457(b) governmental plans in New Jersey. Here we have a waist high flood of high cost commission based investment providers. There is one plan for State employees. Each of the 21 Counties have their own plan. Each of the 600 Municipalities have their own plan. Each of the 600 School Districts have their own plan.

 

It is utterly senseless to mandate a single Defined Benefit pension plan for all New Jersey public employers and then allow each of them to have their own 457(b) plan. The State of New Jersey needs to adopt the one-plan-rule used by numerous states, with that plan being no-load and de minimus cost. See the Deferred Compensation Plan of New York. Here we have a single no-load plan offered to state employees, county employees, municipal employees and school district employees.

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Guest Joel L Frank

Have the educators in your school sign a petition and send it to the Governor. That should be doable.

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