Wonder how far an insurance agent will go to make a commission? How about proposing a ridiculous plan to a teacher to induce her to retire (prematurely) and offering to do her taxes for life for free.
The link above will take you to series of posts on the 403bwise discussion board where a son steps in and asks for help in combating an idiot insurance agent hawking equity indexed annuities sold by The Great American Life Insurance company - a company that is not being "Great" to Americans (in my opinion). The agent stood to make an enormous amount of money while sticking a teacher into a series of products that were not in her best interest.
The teacher put in for her letter of resignation before her son was able to review the proposal from the agent, now she has no job and has to retire - early than she should have.
The 403(b) world has a problem and it is being ignored.
ScottyD
Monday, June 11, 2007
Friday, May 25, 2007
New 403(b) rules give employers more control
New 403(b) rules give employers more control - 25 May 2007
The new 403(b) regs are coming and this article provides a short, short summary emphasizing that employers will need to take control of their plans.
I've spent a lot of time going over what work will need to be done in order to really comply with these regulations and when I say the work is a daunting task, I am not being overly dramatic. The changes that are about to befall the 403(b) industry are going to be massive.
Scott Dauenhauer, CFP, MSFP, AIF
Consultant on Government Retirement Plans
949-916-6238
www.meridianwealth.com
The new 403(b) regs are coming and this article provides a short, short summary emphasizing that employers will need to take control of their plans.
I've spent a lot of time going over what work will need to be done in order to really comply with these regulations and when I say the work is a daunting task, I am not being overly dramatic. The changes that are about to befall the 403(b) industry are going to be massive.
Scott Dauenhauer, CFP, MSFP, AIF
Consultant on Government Retirement Plans
949-916-6238
www.meridianwealth.com
Sunday, May 20, 2007
Prepare for Changes in 403(b) Plans - WSJ.com
Prepare for Changes in 403(b) Plans - WSJ.com
Andrea Coombes interviewed me last week for this article and I'm quoted throughout the article! This is an article about how the upcoming 403(b) regulations will affect participants who are currently in these plans.
It's a relatively short article and a good primer for what to expect. I would expect many more of these articles to pop up over the next six months.
A big thank you to Andrea Coombes for quoting me!!
Scott Dauenhauer, CFP, MSFP, AIF
www.meridianwealth.com
949-916-6238
Andrea Coombes interviewed me last week for this article and I'm quoted throughout the article! This is an article about how the upcoming 403(b) regulations will affect participants who are currently in these plans.
It's a relatively short article and a good primer for what to expect. I would expect many more of these articles to pop up over the next six months.
A big thank you to Andrea Coombes for quoting me!!
Scott Dauenhauer, CFP, MSFP, AIF
www.meridianwealth.com
949-916-6238
Wednesday, May 16, 2007
Fees take huge toll on 403(b) plans (Page 2 of 4)
Fees take huge toll on 403(b) plans (Page 2 of 4)
Great article on how fees affect your retirement, includes a chart created by me!
Scott Dauenhauer, CFP, MSFP, AIF
Great article on how fees affect your retirement, includes a chart created by me!
Scott Dauenhauer, CFP, MSFP, AIF
Friday, May 11, 2007
How Close Is the 403(b) To Becoming History? 401(x)...
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
www.meridianwealth.com
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
www.meridianwealth.com
Wednesday, May 09, 2007
CalSTRS Awards Recordkeeping RFP TO TIAA-CREF
Award of Contracts
From CalSTRS Website:
Begin
Notice of Intent to Award
Third Party Administrator for Record Keeping of Assets
Request for Proposal Number 2P200610
The California State Teachers' Retirement System (CalSTRS) intends to award a contract to TIAA-CREF as the successful Proposers in the Request for Proposal process entitled Third Party Administrator for Recordkeeping of Assets, pending the Teachers' Retirement Board approval.
CalSTRS has elected to terminate the Third Party Administrator for Compliance component of this RFP. There will be no contract award resulting from the Compliance component of the RFP process.
End
Commentary and Disclosure:
Details are not yet public, but CalSTRS has decided to move away from CitiStreet as its recordkeeper and award TIAA-CREF the new contract. The contract will goto the board for approval in June, the fund lineup and pricing should be announced in July. More information about the new program will be forthcoming in the next few months.
The RFP for Compliance was not awarded, instead it was reissued as a separate RFP and can be found at www.calstrs.com/rfp.
In the interest of full disclosure, I (Scott Dauenhauer, CFP, MSFP, AIF President of Meridian Wealth Management) acted as a consultant for the Recordkeeping RFP and continue to act as a consultant on the new Compliance RFP bid.
Scott Dauenhauer, CFP, MSFP, AIF
President
Meridian Wealth Management
949-916-6238
www.meridianwealth.com
From CalSTRS Website:
Begin
Notice of Intent to Award
Third Party Administrator for Record Keeping of Assets
Request for Proposal Number 2P200610
The California State Teachers' Retirement System (CalSTRS) intends to award a contract to TIAA-CREF as the successful Proposers in the Request for Proposal process entitled Third Party Administrator for Recordkeeping of Assets, pending the Teachers' Retirement Board approval.
CalSTRS has elected to terminate the Third Party Administrator for Compliance component of this RFP. There will be no contract award resulting from the Compliance component of the RFP process.
End
Commentary and Disclosure:
Details are not yet public, but CalSTRS has decided to move away from CitiStreet as its recordkeeper and award TIAA-CREF the new contract. The contract will goto the board for approval in June, the fund lineup and pricing should be announced in July. More information about the new program will be forthcoming in the next few months.
The RFP for Compliance was not awarded, instead it was reissued as a separate RFP and can be found at www.calstrs.com/rfp.
In the interest of full disclosure, I (Scott Dauenhauer, CFP, MSFP, AIF President of Meridian Wealth Management) acted as a consultant for the Recordkeeping RFP and continue to act as a consultant on the new Compliance RFP bid.
Scott Dauenhauer, CFP, MSFP, AIF
President
Meridian Wealth Management
949-916-6238
www.meridianwealth.com
Thursday, May 03, 2007
School Districts and Fiduciary Responsibility
If you are a school district board member, Superintendent, or administrator you need to read this article.
Scott Dauenhauer, CFP,MSFP, AIF
Scott Dauenhauer, CFP,MSFP, AIF
Wednesday, May 02, 2007
Plan Compliance Group Update
starbulletin.com | News | /2007/04/28/
Update on Plan Compliance Group
Man guilty in UH, DOE pension scam
Question: What ever happened to Plan Compliance Group, the California company accused of losing nearly $2.3 million from retirement accounts of Hawaii Department of Education employees and $420,000 from the accounts of University of Hawaii workers?
Answer: Education officials are still trying to have the company, which filed for bankruptcy in December 2005, pay back the money. The DOE and UH have reimbursed some 10,000 affected employees.
The university used risk-management money to replace the funds missing from the retirement accounts of its workers, said spokeswoman Carolyn Tanaka. The university is now managing the accounts, she said. The DOE also used state funds to make up for the money lost, said spokesman Greg Knudsen.
The owner of Walnut Creek, Calif.-based PCG, Francis William "Bill" Reimers, pleaded guilty last month to six counts of mail fraud and one count of money laundering in federal court, according to the U.S. Department of Justice. In a deal with federal prosecutors, Reimers admitted to carrying out a fraud scheme that caused more than $7 million in losses to more than 250 investors.
Reimers, 62, faces up to 20 years in prison for each of the seven counts, plus substantial fines and restitution. His sentencing has been scheduled for Aug. 3.
Reimers, who also owned Advisory Services Group, a financial investment services company, admitted to using money from investors to pay his mortgage and to buy luxury cars, vacations and hunting trips. Meanwhile, he would give individual investors false account statements and divert the money to run PCG and Univest Capital Management, which managed benefits for federal employees.
In 2005 the DOE sued PCG for fraud, negligence and breach of contract over the disappearance of the money. UH has also filed a lawsuit to retrieve the funds, said Darolyn Lendio, the university's vice president for legal affairs and general counsel.
When it filed for Chapter 7 bankruptcy, PCG estimated its assets at less than $500,000.
This update was written by Alexandre Da Silva
Scott Dauenhauer, CFP, MSFP, AIF
Update on Plan Compliance Group
Man guilty in UH, DOE pension scam
Question: What ever happened to Plan Compliance Group, the California company accused of losing nearly $2.3 million from retirement accounts of Hawaii Department of Education employees and $420,000 from the accounts of University of Hawaii workers?
Answer: Education officials are still trying to have the company, which filed for bankruptcy in December 2005, pay back the money. The DOE and UH have reimbursed some 10,000 affected employees.
The university used risk-management money to replace the funds missing from the retirement accounts of its workers, said spokeswoman Carolyn Tanaka. The university is now managing the accounts, she said. The DOE also used state funds to make up for the money lost, said spokesman Greg Knudsen.
The owner of Walnut Creek, Calif.-based PCG, Francis William "Bill" Reimers, pleaded guilty last month to six counts of mail fraud and one count of money laundering in federal court, according to the U.S. Department of Justice. In a deal with federal prosecutors, Reimers admitted to carrying out a fraud scheme that caused more than $7 million in losses to more than 250 investors.
Reimers, 62, faces up to 20 years in prison for each of the seven counts, plus substantial fines and restitution. His sentencing has been scheduled for Aug. 3.
Reimers, who also owned Advisory Services Group, a financial investment services company, admitted to using money from investors to pay his mortgage and to buy luxury cars, vacations and hunting trips. Meanwhile, he would give individual investors false account statements and divert the money to run PCG and Univest Capital Management, which managed benefits for federal employees.
In 2005 the DOE sued PCG for fraud, negligence and breach of contract over the disappearance of the money. UH has also filed a lawsuit to retrieve the funds, said Darolyn Lendio, the university's vice president for legal affairs and general counsel.
When it filed for Chapter 7 bankruptcy, PCG estimated its assets at less than $500,000.
This update was written by Alexandre Da Silva
Scott Dauenhauer, CFP, MSFP, AIF
Friday, April 27, 2007
The Re-Education of CalSTRS
II Magazine Americas
An extensive history of how CalSTRS got to where it is today. This article also profiles the CEO and CIO, a good read for any teacher in California.
ScottyD
An extensive history of how CalSTRS got to where it is today. This article also profiles the CEO and CIO, a good read for any teacher in California.
ScottyD
Friday, April 20, 2007
Another 403(b) TPA Files Bankruptcy
QUADS Financial Group, Inc
Add Quadsweb to the list of third party administration firms that service 403(b) plans that have filed bankruptcy. Quadsweb was not a traditional TPA in the 403(b) sense and they didn't, as far as I know steal any money. They have been taken over by a conservator and are reorganizing under Chapter 11.
We can't put this failure in the same category as Plan Compliance Group, NEBSonline, and Flagship/Horizon as this entity was taken over before money could be stolen (not saying there was any attempt to steal money). However, its failure is further proof that districts need to take great care in who they do business with.
Scott Dauenhauer, CFP, MSFP, AIF
949-916-6238
Add Quadsweb to the list of third party administration firms that service 403(b) plans that have filed bankruptcy. Quadsweb was not a traditional TPA in the 403(b) sense and they didn't, as far as I know steal any money. They have been taken over by a conservator and are reorganizing under Chapter 11.
We can't put this failure in the same category as Plan Compliance Group, NEBSonline, and Flagship/Horizon as this entity was taken over before money could be stolen (not saying there was any attempt to steal money). However, its failure is further proof that districts need to take great care in who they do business with.
Scott Dauenhauer, CFP, MSFP, AIF
949-916-6238
Wednesday, April 18, 2007
IRS pending regulations seen as consolidating 403(b) market - InvestmentNews
IRS pending regulations seen as consolidating 403(b) market - InvestmentNews
FYI.
They never quote anyone who actually has real knowledge and a different point of view at Invesment News...oh well, their loss.
ScottyD
FYI.
They never quote anyone who actually has real knowledge and a different point of view at Invesment News...oh well, their loss.
ScottyD
Friday, April 13, 2007
Beginning of The End For NEA Valuebuilder?
Class Action Newsline
It looks like the NEA Member Benefits is about to reap what it sowed, it will be sued. Though only an investigation, Keller Rohrback would not go public if they didn't have the evidence needed to go after this horrible product.
What follows is the press release:
It looks like the NEA Member Benefits is about to reap what it sowed, it will be sued. Though only an investigation, Keller Rohrback would not go public if they didn't have the evidence needed to go after this horrible product.
What follows is the press release:
Keller Rohrback L.L.P. Announces Excessive Fee Investigation Regarding NEA Valuebuilder Program
SEATTLE, April 7, 2007 (PRIME NEWSWIRE) -- Keller Rohrback L.L.P. (www.erisafraud.com) today announced that it is investigating the National Education Association ("NEA") Valuebuilder 403(b) variable annuity plan. The plan, which is sold by an insurance company called Security Benefit, is the only retirement program endorsed by the NEA. In exchange for the endorsement, Security Benefit provides compensation to the NEA. Keller Rohrback is evaluating whether the NEA endorsed the program because of the payments, as opposed to a prudent evaluation of whether the plan is in the best interests of NEA members.
A 403(b) plan is a tax-deferred retirement plan available to employees of educational institutions and certain non-profit organizations. A common 403(b) plan investment option is a variable annuity. A variable annuity is an annuity plan that enables participants to direct their salary deferral into certain specific mutual funds. As many commentators have noted, 403(b) annuity plans often charge excessive fees that substantially diminish participants' retirement savings. In addition, 403(b) providers often choose mutual funds for their plans based on revenue sharing deals with the mutual fund companies, as opposed to a prudent evaluation of the merits of the fund option. Recent articles have drawn attention to the fees charged by the NEA Valuebuilder plan.
If you are a participant in the NEA Valuebuilder 403(b) variable annuity plan, and would like to speak with us regarding our investigation, please contact any member of our team: paralegal Jennifer Tuato'o or attorneys Cari Campen Laufenberg, Derek Loeser, or Lynn Sarko, toll free at 800-776-6044, or via e-mail at investor@kellerrohrback.com.
Keller Rohrback is one of America's leading law firms handling ERISA retirement plan litigation. We are committed to helping employees and retirees protect their retirement savings. Keller Rohrback serves as lead and co-lead counsel in numerous ERISA class action cases, including cases against Enron, WorldCom, Inc., HealthSouth, and Marsh & McLennan Companies, as well as ERISA cash balance pension plan cases, including JP Morgan Chase & Co. Keller Rohrback has successfully provided class action representation for over a decade. Its trial lawyers have obtained judgments and settlements on behalf of clients in excess of seven billion dollars.
CONTACT: Keller Rohrback L.L.P.
Jennifer Tuato'o, Paralegal
(800) 776-6044
investor@kellerrohrback.com
www.erisafraud.com
Friday, April 06, 2007
Imperfect Union - Forbes.com
Imperfect Union - Forbes.com
Neil Weinberg details the class action brought against the New York State United Teachers and ING accusing wrongdoing in their 403(b) plan.
Scott Dauenhauer, CFP, MSFP, AIF
www.meridianwealth.com
949-916-6238
Neil Weinberg details the class action brought against the New York State United Teachers and ING accusing wrongdoing in their 403(b) plan.
Scott Dauenhauer, CFP, MSFP, AIF
www.meridianwealth.com
949-916-6238
Trust Sued Over Backing Retiree Plan - New York Times
Trust Sued Over Backing Retiree Plan - New York Times
NYSUT, the New York Union that settled with Elliot Spitzer is now being sued as part of a class action under a very interesting theory.
This is a good development in that these entities need to know that abusing their members is not going to go unpunished. Its only a matter of time before the NEA Valuebuilder product is targeted, the NEA Member Benefits organization in my opinion is one of the worst providers of 403(b) products in the nation.
Scott Dauenhauer, CFP, MSFP, AIF
949-916-6238
NYSUT, the New York Union that settled with Elliot Spitzer is now being sued as part of a class action under a very interesting theory.
This is a good development in that these entities need to know that abusing their members is not going to go unpunished. Its only a matter of time before the NEA Valuebuilder product is targeted, the NEA Member Benefits organization in my opinion is one of the worst providers of 403(b) products in the nation.
Scott Dauenhauer, CFP, MSFP, AIF
949-916-6238
Monday, March 26, 2007
Reimers Pleads Guilty - FBI Says $7 Million Gone
LawFuel - The Law News Network
Francis "Bill" Reimers pleaded guilty on March 23rd to six counts of mail fraud and one count of money laundering. Bill stole from school districts and individuals. A guilty plea, while nice, is of little solice to those who lost so much while Bill and his family lived high on the hog.
I never met Bill, but did talk to him on several occasions. I hope God will forgive him, there are many out there who have been wronged that I think probably won't. They are now stuck living a retirement that they thought would be secure.
I have a feeling this isn't over, more will come out as time goes on.
Scott Dauenhauer, CFP, MSFP, AIF
www.meridianwealth.com
949-916-6238
Francis "Bill" Reimers pleaded guilty on March 23rd to six counts of mail fraud and one count of money laundering. Bill stole from school districts and individuals. A guilty plea, while nice, is of little solice to those who lost so much while Bill and his family lived high on the hog.
I never met Bill, but did talk to him on several occasions. I hope God will forgive him, there are many out there who have been wronged that I think probably won't. They are now stuck living a retirement that they thought would be secure.
I have a feeling this isn't over, more will come out as time goes on.
Scott Dauenhauer, CFP, MSFP, AIF
www.meridianwealth.com
949-916-6238
Monday, March 19, 2007
Quotas tied to benefits irk advisers
Quotas tied to benefits irk advisers - InvestmentNews
Ever wonder if the agent selling you that 403(b) had other things on his or her mind? Perhaps the policy being sold to you wasn't in your interest, or perhaps the policy was sold to you for other, more nefarious reasons. Many companies offer wonderful vacations to reps who sell certain, usually proprietary products, however, a story by Investment News is shedding light on another interesting perk that is affected by product sales......Health Insurance.
It turns out that at least three major players in the 403(b) market use health insurance benefits as a way to get their reps to sell the companies own proprietary products. If reps or agents don't sell enough of the firms products they won't get health insurance for themselves, their spouse, or their children...can you say conflict of interest?
I don't believe you should ever purchase proprietary products, and this is just one more confirmation of that belief. The question remains, are you being sold a product because it is best for you or because your advisor needs it in order to ensure (actually insure...no pun inteneded) the health of his family? Advisors shouldn't be faced with this dilemma, but then again, they choose who they work for, in this case, it isn't you.
Most advisors are not fiduciaries (required to put your best interest firs) and most firms cannot allow them to be fiduciaries because of conflicts such as utilizing health insurance benefits to force agents to sell more proprietary products. What a shame.
The 403(b) industry needs reform.
Scott Dauenhauer, CFP, MSFP, AIF
www.meridianwealth.com
949-916-6238
Ever wonder if the agent selling you that 403(b) had other things on his or her mind? Perhaps the policy being sold to you wasn't in your interest, or perhaps the policy was sold to you for other, more nefarious reasons. Many companies offer wonderful vacations to reps who sell certain, usually proprietary products, however, a story by Investment News is shedding light on another interesting perk that is affected by product sales......Health Insurance.
It turns out that at least three major players in the 403(b) market use health insurance benefits as a way to get their reps to sell the companies own proprietary products. If reps or agents don't sell enough of the firms products they won't get health insurance for themselves, their spouse, or their children...can you say conflict of interest?
I don't believe you should ever purchase proprietary products, and this is just one more confirmation of that belief. The question remains, are you being sold a product because it is best for you or because your advisor needs it in order to ensure (actually insure...no pun inteneded) the health of his family? Advisors shouldn't be faced with this dilemma, but then again, they choose who they work for, in this case, it isn't you.
Most advisors are not fiduciaries (required to put your best interest firs) and most firms cannot allow them to be fiduciaries because of conflicts such as utilizing health insurance benefits to force agents to sell more proprietary products. What a shame.
The 403(b) industry needs reform.
Scott Dauenhauer, CFP, MSFP, AIF
www.meridianwealth.com
949-916-6238
Wednesday, March 14, 2007
Tax-sheltered annuity regs expected by mid-2007 - CCH® Pension and Benefits News Story - 3/14/07
Tax-sheltered annuity regs expected by mid-2007 - CCH® Pension and Benefits News Story - 3/14/07
The new regs are coming, school districts need to start preparing.
Scott Dauenhauer, CFP, MSFP, AIF
949-916-6238
www.meridianwealth.com
The new regs are coming, school districts need to start preparing.
Scott Dauenhauer, CFP, MSFP, AIF
949-916-6238
www.meridianwealth.com
Tuesday, March 13, 2007
Feds charge Danville investment executive Reimers
ContraCostaTimes.com | 03/12/2007 | Feds charge Danville investment executive Reimers
Here is an update on the Bill Reimers/Plan Compliance Group scandal.
Plan Compliance Group is the third party administrator for school districts that stole over $3 million of school district money and spent it on a lavish lifestyle. He also stole money from a federal insurance program and from several individuals who trusted him.
Scott Dauenhauer, CFP, MSFP, AIF
www.meridianwealth.com
Here is an update on the Bill Reimers/Plan Compliance Group scandal.
Plan Compliance Group is the third party administrator for school districts that stole over $3 million of school district money and spent it on a lavish lifestyle. He also stole money from a federal insurance program and from several individuals who trusted him.
Scott Dauenhauer, CFP, MSFP, AIF
www.meridianwealth.com
Monday, March 12, 2007
Investment Expenses Higher Than They Seem
Dallas Morning News | News for Dallas, Texas | Scott Burns: Columns 2007
Good column on why it is important to watch fees in your retirement plans, they are essentially like another tax on your money. High fees rarely lead to higher returns. Scott Burns has a fee calculator on his website.
Scott Dauenhauer, CFP, MSFP, AIF
949-916-6238
www.meridianwealth.com
Good column on why it is important to watch fees in your retirement plans, they are essentially like another tax on your money. High fees rarely lead to higher returns. Scott Burns has a fee calculator on his website.
Scott Dauenhauer, CFP, MSFP, AIF
949-916-6238
www.meridianwealth.com
Thursday, March 08, 2007
Investors' losses keep mounting
Investors' losses keep mounting:
This is a bit of an old story, but I thought you'd like an update.
ScottyD
www.meridianwealth.com
This is a bit of an old story, but I thought you'd like an update.
ScottyD
www.meridianwealth.com
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