Friday, August 19, 2016

Attn School Employers: Another Simple Retirement Hack

In my last post I explained how moving from dollar based salary reduction agreements (SRAs) to percentage based ones can increase participant retirement accounts. There are a number of small things that employers can do to increase the amount of money being contributed or the number of participants contributing. While a single vendor relationship combined with auto-enroll and auto-escalate would be the best route, this isn't the reality in many 403(b) plans, so coming up with simple ways to increase enrollment or contribution levels is important.

Wednesday, August 17, 2016

Attn School Employers: A Simple Change That Has Profound Affects

Reform in the 403(b) public K-12 market is long overdue and yet, it probably isn't coming anytime soon. But there is at least one thing that school employers could do right now that is relatively simple and which could help improve the retirement security of millions of public school employees. What's even better is that it's non-controversial.

Thursday, August 11, 2016

Don't Fall For This 403(b) "Match" Scam

Several private universities are being sued for overcharging participants, the companies offered were low-cost providers like TIAA, Fidelity and Vanguard...yet they are still being sued.

Meanwhile, in the public K-12 market we have companies like the one featured in the ad to the left literally lying to participants and potential participants about being eligible for an employer match. They represent companies like Midland National and Life of the Southwest, companies that are not in participants best interest.

I feel like I'm in the Twilight Zone. They don't call the public K-12 market the Wild West for nothing (I wrote a book for advisors titled "Wild West: Providing Fiduciary Advice to Public School Employees").

Wednesday, August 10, 2016

Non-Profit Universites Sued Over 403(b) Programs

Image: Ray Bartkus
I was a bit surprised to see this lawsuit as I'd pretty much kill to have the providers listed in the programs being sued (Fidelity and TIAA - who are not defendants).

I'm not getting a warm and fuzzy with this lawsuit, though it may prompt system wide change, I fear that the schools will pay out a lot of money for operating programs that were, relatively speaking, pretty good.

If you think these programs are bad, you ain't seen nothing until you've dug into the world of public K-12 403(b) programs. As I dig into the lawsuits, I'll have more commentary.

Here is a short excerpt and link to the New York Times article by Tara Siegel Bernard: