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http://www.asppa.org/document-vault/pdfs/G.../final403b.aspx
The above linked to document is a letter from ASPPA to the DOL. The letter mentions NTSAA as part of its organization (there is a partnership). The letter is essentially asking the DOL to bless Open Arch platforms as complying with the ERISA exemption for non-profits.
I don't believe NTSAA by itself would have written such a letter (of course I could be wrong, but I doubt it) and while I realize the letter didn't come from NTSAA, it has the backing of NTSAA. This represents a shift that I don't believe was possible even a year ago. I'm willing to bet some of the NTSAA vendor community doesn't like this letter (like LSW, AVIVA maybe....), though others would welcome it (GWN, Legend, even VALIC) - it represents the change going on in the industry (one that technology is bringing about).
I thought you'd find this interesting.
ScottyD
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Further Sign Of A Ntsaa Evolution?
#2
Posted 04 February 2010 - 03:18 PM
Hi Scotty,
Thanks for the link. I read the letter twice to try and digest it from a participant POV, in fact, just trying to digest it period. After all of these years reading these reports between the professionals, its it any wonder that the 403b will remain mysterious for a long time. Everytime I read one of those reports, any particpant can surmise immediately that they have not talked to ordinary employees.
If my encounter with the fellow at NTSAA last week is any indication of the depth of trying to go forward, these organizations have a long ways to go. They simply have little idea what is going on with K12 school districts that are not under ERISA. They are experts in 401k plans, but not 403b. I guess that is why they are looking for clarification going forward from the DOL. But 403bs are not subjected to DOL regs.
I agree that the biggest insurance companies would not feel threatened by this because they know the risk to their 403b market share is extreemly low and the industry also knows that the low fee companies mutual fund companies (VG and Fidelity) will not enter these arrangements that cost them money. And if the mutual fund industry does get involved, they cannot "sooth" employees with expensive guarentees and a promise never to see your account lose money. They know how to talk to navie employees, but they do not know how to take them to the next step. But I digress.
Thanks again,
Steve
Thanks for the link. I read the letter twice to try and digest it from a participant POV, in fact, just trying to digest it period. After all of these years reading these reports between the professionals, its it any wonder that the 403b will remain mysterious for a long time. Everytime I read one of those reports, any particpant can surmise immediately that they have not talked to ordinary employees.
If my encounter with the fellow at NTSAA last week is any indication of the depth of trying to go forward, these organizations have a long ways to go. They simply have little idea what is going on with K12 school districts that are not under ERISA. They are experts in 401k plans, but not 403b. I guess that is why they are looking for clarification going forward from the DOL. But 403bs are not subjected to DOL regs.
I agree that the biggest insurance companies would not feel threatened by this because they know the risk to their 403b market share is extreemly low and the industry also knows that the low fee companies mutual fund companies (VG and Fidelity) will not enter these arrangements that cost them money. And if the mutual fund industry does get involved, they cannot "sooth" employees with expensive guarentees and a promise never to see your account lose money. They know how to talk to navie employees, but they do not know how to take them to the next step. But I digress.
Thanks again,
Steve
#3
Posted 28 February 2010 - 12:16 PM
The next meeting will be in Chicago on May 10-12.
http://www.asppa.org/main-menu/knowledge/c...t/overview.aspx
http://www.asppa.org/main-menu/knowledge/c...t/overview.aspx
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