Beware of District 403(b) Representatives
Like
Paul Revere warning about the British, CTA wants to caution you that
soon 403(b) vendor and third party administrator (TPA) reps may be
coming to your school to talk to you about the investment products
available in their 403(b) plans.
One of the rules of 403(b) plans is that the district is required to provide meaningful notice of universal availability, which means they are required to notify all school employees that the 403(b) plan is available to all, when educators can enter the plan and how many times during the year they can alter the plan.
Many districts attempt to satisfy the meaningful notice requirement by having their 403(b) TPA send representatives to schools to talk about the 403(b) plan. These representatives may also discuss some of the vendors and products available in the plan, and sometimes the TPA is affiliated with a 403(b) vendor. This has led to confusion among many educators, who assume that if a representative has been sent by their district, the district has vetted and endorsed the vendors.
That may not be the case!
Choosing a 403(b) product or vendor is one of the most important retirement planning decisions you will make. Don't be sold a product by the district's TPA or by a vendor in the lunch room, but rather do a little bit of research before you make a selection or change your investment.
Investing in a 403(b) is important so you can supplement your CalSTRS or CalPERS retirement. CTA invest.org is CTA's education portal (no log-in required) and has calculators, videos, questions and guides to help you make an informed decision. Visit CTAinvest.org BEFORE selecting or making changes to a 403(b) plan.
Like
Paul Revere warning about the British, CTA wants to caution you that
soon 403(b) vendor and third party administrator (TPA) reps may be
coming to your school to talk to you about the investment products
available in their 403(b) plans.One of the rules of 403(b) plans is that the district is required to provide meaningful notice of universal availability, which means they are required to notify all school employees that the 403(b) plan is available to all, when educators can enter the plan and how many times during the year they can alter the plan.
Many districts attempt to satisfy the meaningful notice requirement by having their 403(b) TPA send representatives to schools to talk about the 403(b) plan. These representatives may also discuss some of the vendors and products available in the plan, and sometimes the TPA is affiliated with a 403(b) vendor. This has led to confusion among many educators, who assume that if a representative has been sent by their district, the district has vetted and endorsed the vendors.
That may not be the case!
Choosing a 403(b) product or vendor is one of the most important retirement planning decisions you will make. Don't be sold a product by the district's TPA or by a vendor in the lunch room, but rather do a little bit of research before you make a selection or change your investment.
Investing in a 403(b) is important so you can supplement your CalSTRS or CalPERS retirement. CTA invest.org is CTA's education portal (no log-in required) and has calculators, videos, questions and guides to help you make an informed decision. Visit CTAinvest.org BEFORE selecting or making changes to a 403(b) plan.
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