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Anniversary Of The Historic Ny Times 403(B) Series

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Yes, where has it gotten us. I don't see anything happening to bring better choices to unfortunate districts.

 

My wife and I in a great districts with Vanguard, and Fidelity for my 403b and we also have access to a 457 plan. My wife and I max out everything!

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Yes, where has it gotten us. I don't see anything happening to bring better choices to unfortunate districts.

 

 

 

Arich

 

The situation use to be much worse 10 years ago. Good things have been happening albeit slowly. You are lucky you have the choices you have but I bet 10 years ago those options did not exist in your school system. Somebody along the way got it right.My feeling is any district can right its ship but most likely it will have to come as a result of teachers demanding change. This will require teachers to have knowledge about 403b-457b retirement investing. Until that happens in any particular district, the sharks will take advantage.

 

I blame ignorance and/or lack of motivation of educators and administrators partly for the mess in the 403b universe. Not every district can get any investment option someone may want, but they can get decent non-annuity, low cost choices added if they do their research and push hard for it.

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Yes, where has it gotten us. I don't see anything happening to bring better choices to unfortunate districts.

 

 

I couldn't agree more! I had some hope that perhaps this five-article series over a month from the NY Times might bring some change, but until the hard-nosed unions start looking at this, another generation of teachers will go unprotected from the SHARKS 100%.

 

Here are past published articles in magazines, newspapers and even the best article ever from American Federation of Teachers "Shark Attack," has not moved the needle much for 23 years. All said the same thing, 403(b)s with public k12 districts are self-conflicted with the only beneficiary as the annuity/TSA salesperson and their insurance companies!

 

Newspaper and Online 403(b) Reports (1994-2016)

1. Where to invest a 403b: almost anywhere by Melynda Dovel Wilcox, Kiplinger’s Personal Finance, Feb. 1, 1994. (Note: This article discussed only transferring from an annuity or high fee vendor into a low-cost mutual fund).

 

2. Fighting for 403b funds: With Annuities, you’re stuck with extra fees by Kevin McCormally, Kiplinger’s September 1997 (Note: I learned about this great article after Kathy Kristof’s article).

 

3. Protect Yourself from American’s Flawed Pension Plans. By Andrea Rock, December 1, 1997, MONEY Magazine.

 

4. The Fourth R: It’s Retirement, and for many teachers, the arithmetic is narrow investment choices is unsatisfactory. If you are persistent you may be able to get your employer to broaden your choices. Kathy Kristof, Los Angeles Times, January 18, 1998.

 

5. For Teachers, Object Lessons From the 401(k) by Richard A. Oppel Jr. New York Times, June 13, 1999.

 

6. Public sector retirement savings plans often are accompanied by hefty fees that reduce returns by Helen Huntley. St. Petersburg Times Online Business, September 26, 1999.

 

7. 1st Step in Teacher’s Lesson Plan: Crash Course in Investing by Suzy Hagstrom. Los Angeles Times Makeover special, December 21st, 1999.

 

8. The Fleecing of 403b participants by CBSMarketWatch.com May 30, 2000.

 

9. Feds issue annuity warning by Marcy Gordon, Associated Press, published in the Daily News, June 6, 2000.

 

10. Special Report: Shark Attack! Investors in 403b plans, beware: You are especially vulnerable to predators by Don Kuehn, American Teacher. American Federation of Teachers (AFT) trade magazine, June 2000. But two years later AFT choose another insurance company INC Etna to lead the 403b Plan.

 

11. Insurance Agents Weigh in on Column Taking Industry’s Bad Apples to Task by Liz Pulliam Weston, Sunday, June 18, 2000 Los Angeles Times. Ms. Weston’s response to a complaining insurance agent was brilliant.

 

12. Retirement plans come in various flavors—403bs can leave a bad taste by Paul J. Lim. US News and World Report (July 10, 2000).

 

13. Retirement Savings Plan Costs Teachers, Lawsuit say by Mary Doclar and Mike Lee. Fort Worth Star-Telegram, Sunday, September 17, 2000.

 

14. Savings Shock by Michele M. Capots. Education Week, Vol. 12, Issue 7, Page 9, April 2001.

 

15. Changes to 403b plans help teachers save by Sandra Block. Your Money, January 2002 USA Today.

 

16. Teachers' 403b plan nonvirtues 'extolled', San Diego Union, 2004 by Lynn O'Shaughnessy.

 

17. Costly Lesson: Some of the biggest names in insurance peddle lousy retirement plans with high fees and low returns. One and a half million teachers blithely signed up for these dogs--often with their unions' blessing. Forbes Magazine by Neil Weinberg, 2005.

 

18. Teachers get harsh lesson on investing, Saving for retirement harder with 403b law, San Diego Union, by David Washburn (2005). 19. As Teachers Sock Money Into 403bs, Few Defenses Exist, The WSJ, Aug. 25, 2005 by Tom Lauricella.

 

20. Teachers investment plans flunk, 403b plans could hardly be worse: fees are outrageous, there’s no match and there’s no oversight, MSN Money, 2005, by Timothy Middleton.

 

21. Fleecing 403b plan participants, W. Scott Simon. This is an excellent eight-part series of articles tearing the 403b system apart, from total lack of fiduciary responsibility, high costs and the insanity of nobody in the educational establishment looking after the teachers' best interest. Mr. Simon is a Morningstar Advisor contributor.

Fleecing 403b Plan Participants April 5, 2007

Fleecing 403b Plan Participants (Part 2) May 3, 2007

Fleecing 403b Plan Participants (Part 3) June 7, 2007

Fleecing 403b Plan Participants (Part 4) July 5, 2007

Fleecing 403b Plan Participants (Part 5) August 2, 2007

Fleecing 403b Plan Participants (Part 6) October 4, 2007

Fleecing 403b Plan Participants (Part 7) November 11, 2007

Fleecing 403b Plan Participants (Part 8) June 5, 2008

 

22. Prepare for Changes in 403b Plans, Wall Street Journal, MarketWatch.com, 2007. 23. Fees take huge toll on 403b plans, Bankrate.com, by Leslie Hggin Geary, 2007.

 

24. How to avoid 403b pitfalls, Bankrate.com, by Leslie Haggin Geary, 2007

 

25. California teachers' supplemental pension plan is flawed, study finds. Los Angeles Times, by Walter Hamilton, March 2, 2011.

 

26. Teachers' 403b Plans See Big Changes, Wall Street Journal, January 4, 2012.

 

27. Law limits L.A. school district's efforts to simplify 403b plan, Pension, and Investments. By Robert Steyer, July 9, 2012

 

28. New York Times. Series of five articles on Public k-12 403(b) plans. First article published October 21, 2016 by Tara Siegal

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That’s an incredible list of articles. I’ll be linking to that. Thanks.

 

I’ve been in my district for 24 years. We’ve always had these choices but we’re just one of 4 districts that has these choices in our area. It seems the more financially strapped the district is the more willing they are to take the Omni P3 bait and limit the employees choices to save a few bucks.

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I am not sure I understand. How does adding choices hurt districts financially? My understanding at least here were I live is that the district is not effected financially but providing choices. When I pushed for Vanguard, Aspire and a State 457 plan I was told that if it impacted district finances it would not happen. Those choices were added so I assumed it cost us nothing.

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Omni's P3 program is made up of only providers that have agreed to pay the TPA fees (Third Party Administrators). Vanguard and Fidelity have refused to do that so they are excluded from participating in the P3 program.

 

Omni pitches this program to districts as a way for them to save money so they (the district) don't have to pay the TPA fees.

 

As part of the vendors had top agree to this, "6. Are you willing to pay for a plan sponsor’s TPA fees? If so, do you prefer to

be billed 1. monthly or quarterly? 2. for each contributing participant or for

each contribution transaction?"

 

Vanguard and Fidelity never has a chance of being part of this "select group"

 

  • Advisory Committee made up of School Business Officials hire National Consultant to Develop Request for Information (RFI).

  • Committee identifies over 80 criteria to evaluate Service Providers on.

  • RFI Application sent to over 200 Service Providers.

  • Advisory Committee evaluates and scores responses from Service Providers.

  • Most major Service Providers meet or exceed criteria in RFI.

  • Service Providers awarded P3 status enter into an agreement with Omni to pay for Plan Administration expenses associated with their active accounts in Districts.

  • Approximately 90% of all major Providers participate in P3.

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403b land is a complicated mess obviously. Its a shame all that fee laden bureaucracy exists. I'm glad some of us in some districts have made progress. Perhaps these unfortunate folks need to look to their state 457b plans instead or just stick to a Roth IRA or just taxable accounts of their choice. Believe me, if I were employed in one of these sub par districts I would find a way to get them to expand their choices.

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457 are not available in all districts, districts must elect to offer it as OMNI charges the district a fee to administer it.

 

Omni is NOT helping the situation here

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Omni is NOT helping the situation here

 

 

Obviously but your sister does have Security Benefit Direct Invest.

 

 

 

 

 

I contacted them yesterday for my SIL. Krow36 had posted that suggestion.

Thanks for your help and suggestions

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