Governing Management Letter/Girard Miller/May 2007
Girard Miller paints an great picture about the problems in the 403(b) and 457(b) market and lets us in on a little known fight that is going on in Washington behind the scenes - the fight for 401(x) - basically the new term for President Bush's proposal several years ago call ERSA (Employer Retirement Savings Accounts).
401(x) would consolidate 403(b), 457(b) and 401(k)'s into a single plan (they are now all pretty similar as it is). As you would expect, the insurance industry is fighting tooth and nail against this. Is the future of the 403(b) a transformance into a 401(x)? Nobody knows, but is seems inevitable and it would be best for the participants.
This is a short article that I encourage you to read, I for one support the 401(x).
Scott Dauenhauer, CFP, MSFP, AIF