Think Your Retirement Plan Is Bad? Talk to a Teacher.
403(b) plans have been making headlines in the past six months. These have been primarily negative headlines focused on participant fees and investment choices for a number of large private university plans. Many of the issues that these larger plans were confronted with, could also apply to smaller universities, schools, and school districts.
403(b) plans often look and feel like a typical 401(k), but what is different is the oversight of these plans. 403(b) plans typically, as this NY Times article states, have lighter oversight and may or may not be governed by ERISA like their 401(k) counterparts. Making sense of multiple 403(b) offerings and hundreds of investments in the typical 403(b) plan can be a daunting task; the participant has to wade through significant information and can be overwhelmed and confused with the overload of choices.
At DirectAdvisors, fee transparency, streamlined menus, and fiduciary compliance are three of the key tenants we follow as fiduciary advisors to school systems. Our fiduciary process for 403(b) plans and 401(k) Plans always has the best interest of our participants at the forefront of our recommendations.