CTA Endorses CalSTRS 403bComply to Provide 403(b) TPA Services!
CTA Endorsed 403(b) Third Party Administrator
The Internal Revenue Service has put into place regulations pertaining to 403(b) plans that will substantially change the manner in which school districts offer these plans to school employees. The goal of the regulations is to bring 403(b) plans into much closer alignment with other voluntary retirement savings plans such as 401(k) and 457 plans and to hold school districts accountable for the administration and compliance of 403(b) plans.
As a result of the compliance and administrative responsibilities, many school districts are outsourcing these services to a third party administrator. Many 403(b) insurance companies and/or their partners are providing these services for "free" or low fees in exchange for exclusive access to employees to promote 403(b) or 457 plans. These products often represent investment products that carry high fees, commissions and therefore perform poorly over time.
The CTA Board of Directors approved the endorsement of the CalSTRS 403bComply program. The CalSTRS 403bComply program provides an independent third party administrative alternative that can be a valuable and conflict-free service to districts seeking to outsource 403(b) compliance work. CTA encourages chapters to visit the CalSTRS website at http://www.calstrs.com/403bcomply/index.aspx to learn more about the 403bComply program. In addition, chapter leaders can contact CTA Member Benefits at 650-552-5200 or email@example.com, and their local CTA staff for assistance in evaluating or replacing their district’s current third-party administrator.
Implication for 403(b) Participants
As a 403(b) participant or potential new investor, the IRS regulations will impact you. It is important to make informed investment decisions and there are several resources available to help you. For more information contact firstname.lastname@example.org or Julia Durand, CalSTRS 403bComply, 888-426-2684 or jdurand@CalSTRS.com, or email@example.com. Additionally, CalSTRS maintains a comparative website, 403bcompare.com that includes performance and fee information on 403(b) vendors.
Review disclaimer regarding Member Benefits information on the CTA website.