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|Subject: Re: Help! 403b ---benefit or error?||Date: 9/23/2008 9:53 AM|
|Author: Hawkwin||Number: 63935 of 81965|
fortunately Metlife was "chosen."
I think you mean unfortnately.
My big question was who made the decision, and how were they qualified to do so? They claim to have made it in part on the number of people already invested with certain companies, and I'm assuming this was done so there was very little turnover. Just to let you know, the teachers had no say, whatsoever, in what is now offered. It was a mess, and the teachers I work with were very confused. One gal broke out in tears because she simply didn't know what to do. We were given 2 weeks notice to decide.
I think part of the new rules require the school corp to have greater legal liability over such decisions. As such, that might be added leverage for them to allow lower fee options than this annuity.
Check with the experts at www.403bwise.com to know for sure. I do know that if they force you into a few high fee options, that they will likely face some legal action in the future. Some school corps are already facing such.
Since you are in Indiana and I am a bit familiar with these circumstances, is the Metlife account you are talking about the VEBA & 401A accounts or your 403b? You should still have more than Metlife for your 403b while your VEBA and 401a will go to a sole company (which is what happened to my wife - Metlife too).
I went to the meeting where Metlife was selected for my wife's school. The rumor was that ISTA was getting some sort of kickback in the form of lower fees on their accounts if they picked Metlife. Apparently, Metlife even has a few employees in the ISTA building. I know that the school admin picked a different provider and my wife's union only came with VALIC (AIG) and Metlife as their choices.
As I previously stated, I plan to take action early next year to correct this issue. I don't imagine it will be easy but at least by then, I think I will have a bit more leverage.
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