When you think about greatness, we default to Micheal Jordan, President Lincoln or Albert Einstein. The Los Angeles Unified School District’s 457(b) plan may not appear to be great but when compared to the typical 403(b) plan, it is most certainly GREAT! This is not just my opinion, here are three reasons:
- LAUSD’s 457(b) won a “Plan Design” award in 2014. I cannot tell you how rare winning an award in this category from an independent professional organization, The National Association of Government Defined Contribution Administrators (NAGDCA). Have you ever heard of a public K-12 school district’s 403(b) plan winning an award? I have not, but please comment if you have.
- If you work for LAUSD and looking for a low-cost plan that invests your hard earned tax-deferred contributions in genuine investment companies, the following table lists your choices and what you will pay. This is an example of cost transparency that you will not see in 403(b) choices.
- Lowered Costs! Vanguard and Blackrock LifePath (aka, Target Date) choices have lowered their already previous low costs even more!
If you looking for a low-cost plan that invests your hard earned tax-deferred contributions in genuine investment companies (not expensive and low performing insurance products), the following table lists your choices and total fees.
Contact VOYA Reps for Presentation at your School or for help to enroll:
Joe Marini (310) 962-2525; Joe.Marini@voya.com
Michelle Williams (720) 925-5729; Michelle.Williams@voya.com
Note: The 457(b) VOYA reps are allowed on district property. The 403(b) reps are never allowed.
Stephen A. Schullo, Ph.D. (UCLA ’96) taught in the Los Angeles Unified School District (LAUSD) for 24 years and UCLA Extension, retired in 2008. The first generation Italian-American, ex-Marine, Vietnam vet wrote investment articles for United Teachers-Los Angeles’ union newspaper (circ. 40,000) for 11 years. A thrice featured volunteer retirement plan advocate, twice in the Los Angeles Times and once in U.S. News and World Report. He has recently been on the national broadcast PBS Frontline: The Retirement Gamble. He started an investor self-help group with Sandy Keaton for LAUSD colleagues and wrote 6,500 posts in three investment forums since 1997. Frequently quoted and interviewed by the media, testified at state legislative hearings, and honored with the “Unsung Hero” award by United Teachers Los Angeles, the teachers’ union, for his retirement planning advocacy.
After ten years, Steve still serves on LAUSD’s Investment Advisory Committee as Member-at-Large and former co-chair. The committee oversees 457(b)/403(b) plans for 55,000 former and current LAUSD employees, assets of $2.4 billion.