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sschullo

"403(b) Plans not Adding Up" by W. Scott Simon

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This is W. Scott Simon's 9th M* article on the pathetic 403(b) and its gotten some traction on the web.

We all know here where Mr. Simon is going. Since 2007, he has written 8 parts, "Fleecing 403(b) Plan Participants,"  pointing out what we have known here since 2001 when this site was launched. About the only thing we can do is keep spreading this article on our Facebook, Twitter, LinkedIn and our blogs to try and reach as many teachers as possible.

When will this unfiduciary abuse stop? 

https://www.morningstar.com/articles/911520/403b-plans-not-adding-up.html 

Again and again 37 newspaper articles since the 1990s have reported some variation of this excerpt again and again: 

Mr Simon wrote: [Ben} Franklin's adage also applies to, say, retirement plans in the public sphere, such as 403(b) plans made available to educators by public school districts. It's no secret that many educators participating in 403(b) plans are forced into suboptimal investment options, such as high-cost annuities and mutual funds. Why? Because in many states like California and Texas, school districts can offer educators just about any looney insurance company-issued financial product no matter how high their costs may be and how imprudent they are. In such states, the bad guys rule the roost and the good guys--low-cost providers--stay away because they refuse to sign school district hold harmless agreements, which legally shield districts from unforeseeable events that may negatively impact a provider.

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Steve, thanks for the link. It's great to see that Simon has returned to the K-12 403b problem again. Although M* pushes a subscription, it doesn't cost anything to sign in for a Basic "subscription". That gets past the pay wall. 

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You're welcome krow. We need Scott and others working together to keep bringing this terrible problem to the front again and again so that more of our colleagues will get wind of it and make changes.  One thing that I all know, if we give up, the problem will never go away. 

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