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mikeklinzing

Plan Connect a subsidiary of AXA

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Hi, my school district is eliminating my ability to continue to fund my 403 (b) through DWS (i am grandfathered in as a class s investor).

Does anyone have any information on Plan Connect?  It looks like a subsidiary of AXA. 

Thanks,

Mike Klinzing

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Welcome to the forum Mike! 

Yes, Plan Connect is AXA's Third Party Administrator (TPA) branch. If your district is using Plan Connect as their TPA, that's concerning. AXA sells expensive annuity based 403b so the TPA might have an interest in discouraging low-cost vendors. There's a possibility of a conflict of interest. Of course a TPA should treat all vendors equally. If your district is using Plan Connect as their TPA, there's not much you can do about it. 

Does your district have a list of possible 403b and 457 vendors? Please post the list. What state are you in? Many states have a low-cost state-run 457 plan that K-12 employees can use. If it's not on the 457 vendor list, it can often be added with minimum difficulty.

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1 hour ago, krow36 said:

Welcome to the forum Mike! 

What state are you in? Many states have a low-cost state-run 457 plan that K-12 employees can use. If it's not on the 457 vendor list, it can often be added with minimum difficulty.

I am in agreement with Krow. Your escape hatch might be a state run 457 plan. Even if its not currently on your district's vendor list, the possibility is there to add it. We need more info from you as Krow requested. You might also have reasonable 403b choices.

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18 hours ago, krow36 said:

Does your district have a list of possible 403b and 457 vendors? Please post the list. What state are you in?

Mike, if you can provide this info krow will have you covered.

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Thanks for helping! I am in Ohio.  This was dropped on me after my previous paycheck.  I was told that Plan Connect would offer American Funds & Ameriprise. Other than that I have no information because I have not set up an account (since I have no "advisor").  I'm hoping to at least be able to look into Plan Connect and see what is offered.  Then I can repost and ask for advice once I see those choices.

What are my 457 options here in Ohio? I am in a very small school district that is not super receptive to things that require them to do any work at all.

I appreciate your help!!

Thanks,

Mike

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What district are you in?

Your state run 457b is here apparently you can call 877-644-6457 for help. The funds and fees are listed here.

You can build a fully diversified portfolio with these three funds:

  • Vanguard Institutional Index (0.02% net expense ratio)
  • Vanguard Total Bond Market Index (0.03% net expense ratio)
  • Vanguard International Index (0.07% net expense ratio)

Or you can use their target date funds ("LifePath"), which have the exceptionally low expense ratio of 0.06%.

I couldn't find any other fees and if there aren't any then this is an exceptionally great plan to invest in.

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I agree it's a great plan. There is a modest admin fee.

Quote

 

Administrative Fees

An annual administrative fee of 0.0014 or 0.14% is charged to each participant. Administrative fees will be charged each quarter and are based on the total of a participant’s account balance(s). Administrative fees will be waived if the total of a participant’s account balance(s) is below $5,000. Administrative fees will be capped at $55 per quarter, per participant.

https://www.ohio457.org/tcm/ohio457/static/OhioIPR.pdf

 

 

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That admin fee places the state run 457b behind elite plans like Vanguard and Fidelity 403b/457b, but ahead of mid-tier plans like Aspire and miles ahead of bad actors like AXA, PlanMember, etc.

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Thank you guys.  I am going to get in touch with Ohio's 457 plan later today.  My concern is that my school district will have to sign up as an employer for Ohio457 in order for me to enroll.  I can almost guarantee they won't be willing to do so if that is the case.

All they would need to do to keep me in my current plan with DWS would be to continue mailing my contributions to DWS each paycheck.  Unfortunately, it appears my treasurer is unwilling to do that outside of PlanConnect.

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20 minutes ago, mikeklinzing said:

I am going to get in touch with Ohio's 457 plan later today.  My concern is that my school district will have to sign up as an employer for Ohio457 in order for me to enroll.  I can almost guarantee they won't be willing to do so if that is the case.

You are on the right track to contact the state 457 plan. Be positive! The state 457 plan will be on your side. Be persistent. The district will have difficulty in justifying a refusal to let their employees use the low-cost state plan! If they refuse at first, keep up the pressure. You are on the side of right, and getting the plan for the district would benefit ALL employees!

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I pushed for it and got it added in Virginia. Explain why it should be added.

1. no commissioned salesman interference

2. unbeatable low costs (compared to most options)

3. state acts as your fiduciary

4 Different investing options

5.no inappropriate annuity  and investment sales

6. Superior to anything on your 403b list

7. Super savers can max out both a 403b and a 457b

8. Different withdrawal rules than 403b's adds flexibility

9.No surrender fees or loads

10. Brokerage self direct options

11. Easy online management of your investments. No waiting for advisor help

 

 

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