FBC Changes for Riverside & San Diego with National Life Group

[Prefer Anonymity 0]

I am a simple individual in Riverside, CA that is familiar with the FBC/Empower plan in the districts. I was suggested to go to this website to inquire on this correspondence I received. As I wish to remain, anonymous due to my employer, we recently received this correspondence regarding changes in the 403b/457 platform in Riverside and San Diego. I am very confused and concerned as this is was just sent out on July 1, with no prior warning. I am attaching the correspondence for review and will post this on the 457 forum as well. If anyone can answer the questions below I would appreciated it.

1. Why are they sending 3 agents from Utah when the district already has agents from Empower?

2. Dan Puplava, the FBC director, is appointed with this "National Life Group" isn't that a conflict of interest?

3. How is a fixed annuity with surrender charges a 457, that can then have them waived (very concerning)

4. The individuals from Utah seem to be sent exclusively to the Riverside and San Diego areas, which is strange, no?

5. Who and what is Leafhouse Financial (managed money?)

If anyone has any additional insights, I would appreciate it.

Regards,

Concerned Individual

https://drive.google.com/open?id=1INPmmQcYC2uczJEUHvDfFN0y63sw6PgG

https://drive.google.com/open?id=1MsqqVcJ6I9zK3pOslaBMcpMbyvmGYMtt

 

FBC Connection Newsletter 072019.pdf FBC Letter to CBO_HR_SUPINT_072019.pdf

[Admin 0]

Thank you for this. We will review and be in touch. Do you contribute to the 403(b) in Riverside? It's one of the worst vendor lists I have seen, but it does have CalSTRS Pension 2. I believe FBC is the exclusive 457(b) vendor in Riverside which is a bit shocking. All in all, Riverside seems to be failing its teachers.  

[sschullo 0]

Hi Anon,

Very happy you reported this. Takes a lot of courage, but you are not alone. Teachers everywhere in the country are getting a raw deal. 

As Dan said, only use Calstrs Pension2, it's a great plan offered by our pension plan. 

Stay the heck away from all of the rest! 

Steve

 

[Prefer Anonymity 0]

Admin (Dan I'm assuming from Steve's post),

The 457 with Empower is, or I thought, was exclusive. According to this article the 457 is now going to be offered by National Life Group as well, which seems odd as I thought most districts had only one 457 provider. The other issue is in Riverside we were supposed to have a blanket "no commissioned" agents/advisors on school grounds which this will be violating, I assume. I do not really understand how all this works, my other concern would be with regards to these National Life Group advisors writing policies for Empower, which sounds even more confusing. The whole point of using the FBC and Empower plan was to not have commissioned agents on the premises.

If you can shed light, thank you.

Anon

[sschullo 0]

2 hours ago, Prefer Anonymity said:

Admin (Dan I'm assuming from Steve's post),

The 457 with Empower is, or I thought, was exclusive. According to this article the 457 is now going to be offered by National Life Group as well, which seems odd as I thought most districts had only one 457 provider. The other issue is in Riverside we were supposed to have a blanket "no commissioned" agents/advisors on school grounds which this will be violating, I assume. I do not really understand how all this works, my other concern would be with regards to these National Life Group advisors writing policies for Empower, which sounds even more confusing. The whole point of using the FBC and Empower plan was to not have commissioned agents on the premises.

If you can shed light, thank you.

Anon

I have heard from a teacher in a small school district in San Bernadino county that has School's First (I think) for both the 403(b) and the 457(b) plans. He tried to form a committee to oversee the plans but was s down by the Superintendent and no interest among his colleagues. You are probably the only one who cares enough for you and your colleagues best interests that you reported this. The bigger question is who in the district or the union decided to have National Life Group with another 457 plan. 

LAUSD also has a policy that no 403b agents selling or talking with teachers on school grounds PERIOD! but the agents violate this all the time. A friend of mine called me and reported that they were presenting at district HEADQUARTERS! I was so angry I wrote an email to the board members about this. Where those agents found and disciplined? Of course not. It was I who was chastised in front of the committee by the chair of the committee for going over her head. I WAS CHASTISED while our teachers are still getting a raw deal and agents violated LAUSD policy. (No worries! I am a big boy). 

You are just getting wind of just how corrupted the entire defined contribution plans are with public k12 school districts with regard to all of the fees that our teachers are paying and they don't even know it. I have been at this for 25 years and I find it totally fascinating that what you are experiencing is still going on. Just think about this, there are thousands of teachers and administrators across the country who must know what we know, but our educational culture absolutely prevents them from speaking out. I am still not sure why people are so afraid. 

There are many publications over the years reporting how bad the situation is as you know. But none of the published media print articles made much of a dent yet. The WSJ will be coming out with 2 reports soon and she is looking for teachers to talk to as we speak. She wants to know the connection between the unions and their endorsements of products. The teacher I spoke of above just talked with this reporter. 

Steve

 

[Anonymous 0]

What is the legal action that can be taken to investigate this? What type of attorney?