Iowa Reforms Their 403b
In 2008 Iowa took steps to move from an “any willing provider 403(b) environment” to a competitive bid process. In California just about everything else that school district need to run programs is competitively bid by outside contracts such as books, computer equipment, consultants, BUT NOT THE 403b. We tried twice to allow districts to competitively bid the 403b but the unions and the insurance agents and their lobbyists fought back.
Iowa represents what collaboration among the various stakeholders can do to provide a decent 403b with all PreK-12 educators (nothing like this has ever existed in California to my knowledge).
Now the National Tax Sheltered Annuity Association (NTSAA) is lobbying for a return to a no-bid world: Testimony of Christopher Degrassi Executive Director, NTSAA