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KingCabrera

NY Omni vs Fidelity

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Hi Everyone. 
 

My district subscribed to Omnis p3 provider list. I’m trying to get the district to add Fidelity but am being told that if the district wants to participate in the P3 program (substantial cost savings), they CAN NOT allow employees to contribute to companies that are not part of the P3 program.

 

Does anyone have any experience fighting this fight?

 

Thanks in advance. 
 

JC

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I think the OMNI P3 sales pitch to school districts is that all the P3 vendors will pay the TPA fees. Since all the insurance company vendors are usually willing to pay the TPA fees, the P3 is a con that effectively screens out the low-cost vendors such as Fidelity and Vanguard. It sure seems like the districts are being hoodwinked. The only vendor with reasonable fees on the P3 list is usually Aspire.

Assuming that Aspire is on the district’s 457 (since it was on the 403b list that you posted), I would go ahead and use it while trying to educate the district’s decision makers about adding Fidelity. If Aspire is not on the 457 vendor list, then that should be your goal!

You might consider talking to Fidelity about getting added to the vendor lists. You never know, they might be willing to pay the TPA fee. I think it’s only $20-$30/yr/account. Of course the district should be willing to pay the TPA fee for Fidelity. 

What state are you in? About half of the states have low-cost, state-run 457 plans that K-12 employees can use. Here’s an incomplete list:

 

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