Do you sign off on the 457 contracts or plan documents? Or do you administer the 457 plan for employees? Congratulations, you are officially a fiduciary of the 457 plan.
The California Constitution states the standards a fiduciary must abide by and the oversight 457 plan assets follow much like pension plan asset oversight.
The language the law uses mimics ERISA standards almost word for word. So why are some cities reluctant to take control and leave theirselves exposed? As more finance managers are becoming aware of this issue, they have resources available to simplify their life and minimize this liability quickly.
We have noticed that many times a city relies or assumes that its vendor or 457 provider is responsible to take on this task not fully understanding that the provider legally is not a fiduciary and has deep inherent conflicts of interest that will not allow them to ever take on such a role.
For over ten years we have worked with municipalities and government agencies to reduce their 457 hidden fees by more than 50% on average. What our clients most like about us is this: No cost for this analysis, no commitments, and full transparency.
We work with you and all 457 vendors: Nationwide, ICMA-RC, Voya, Massmutual, Lincoln, CalPERS, Empower, TIA, Prudential and Fidelity, OneAmerica.
We encourage you to work with a fiduciary if you are not doing so already. These independent specialists will bring a tremendous value, savings, and compliance education your plans may truly appreciate as well as significantly reduce your personal liability in the process.
We offer a free benchmark and blind RFI for your city or agency with no commitments to hire us. We know you will be shocked and pleased to see the results as this report will provide you leverage to renegotiate fees. That’s a powerful start to the process of proper oversight and asset management of these dollars.
