peppermintpatty, you wrote:

<< I'd agree with you on that point. However, a good variable annuity, used in a 403b/TSA plan would offer a wider variety of investment choices, managed by a variety of good investment managers (like Janus, Putnam, T.Rowe Price, Fidelity, etc. etc.). >>

Actually, that's a VERY good point. In today's annuity environment, variable annuities provide a wide range of investment selections (as much as 20 to 40 and with varioius fund families)that a single fund family does not do. Sure, one can easily change fund families within something like an IRA or maybe a small employers SEP plan. But in a bureaucratical system like school systems, it's NOT easy to change. So, from the school systems point of view, a well selected variable annuity can be more attractive. Again, as I've suggested before, things tend to be more complicated than what we might normally be thinking.