Why is this change taking place?

Last November, the District Retirement Committee distributed a survey to all employees regarding its optional retirement plans.  The results of that survey indicated that employees desired an improved plan design, better education and communication, and lower fees.  In addition, the District received negative feedback from employees regarding some of the existing 403(b) and 457 providers, and there had been no official performance or fee review process in place to address these concerns.  Further study revealed large discrepancies among the different providers regarding products offered and fees charged.

Over a nine-month period, the District Retirement Committee met with the District’s independent retirement plan consultants and District administration to review the existing plan design, evaluate RFP responses from investment providers, and make a recommendation to the Board of Education on how to improve the optional retirement plan offerings for employees.  The committee desired to provide lower fees, better resources, education, and communication to help employees more effectively save for retirement.

The Retirement Committee determined that by recommending that the District afford its employees the opportunity to participate in the PERAPlus 401(k) and 457(b) plans, employees can experience the following benefits:

  • Significantly lower investment fees for participants compared to the old plan
  • Improved access to educational resources (meetings, call center, website, etc.)
  • Clear, consistent information and communication regarding retirement options

Category: Plan Revision Frequently Asked Questions


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