Dan Otter 0 Report post Posted June 8, 2003 Texans who care about their 457(b) dodged a bullet last week when legislators failed to vote on SB 1243 which sought to apply restrictive 403(b) rules to the 457(b). Texas law (SB 273) permits any vendor certified by the Texas Retirement System (TRS) to sell 403(b) product in Texas school districts. TRS certifies products that: • charge loads of up to 6 percent • impose surrender charges of up to 12 years • charge operating costs of up to 2.75 percent If passed SB 1243 would have applied SB 273 to the 457(b) and would have effectively killed the RFP process as any vendor certified by TRS would have been able to offer 457(b) product to school districts. Quote Share this post Link to post Share on other sites
Guest Lisa Rutledge Report post Posted June 12, 2003 I'm not clear that the SB 1243 wouldn't do more good than harm my case. I currently have my 403(b) with Vanguard, and pay maximum total annual fees of 0.5% for the actively managed equity funds that I have with them. Of course Vanguard is on the "vendor certified" list of the Texas Retirement System. On the other hand, my 457(b) was choosen by my school district, and it is the only choice I have. For the 457(b), I pay fees in excess of 1.2% for similar actively managed funds. In the case of the 457(b), I would rather have a choice to allow me to reduce my annual maintance fees. Quote Share this post Link to post Share on other sites
Dan Otter 0 Report post Posted June 12, 2003 Hi Lisa, You make a good point. Quote Share this post Link to post Share on other sites