403(b) Reform: 403(b) Reform Efforts
Despite predating the 401(k) by several decades (1958 vs. 1978), the 403(b) plan suffers a myriad of problems that adversely affect participants. All too often investment fees are too high and access to low-cost mutual funds is too limited. This is especially true in public K-14 plans. While entrenched interests are fighting to protect the status quo (and often fat profit margins), advocates are wising up and fighting back. There is a growing movement to reform the 403(b). Reform initiatives are happening at both the national and state level.
Need for Better 403(b) Investment Choices
Too many participants lack access to low-cost investment products.
403(b) Fee Transparency
It is far too difficult for participants to find clear fee and surrender charge information.
403(b) arena full of sales agents pitching high-fee products that serve their interests at the expense of their client's. Require all 403(b) investment professionals to take a fiduciary pledge that puts their client's interests above their own. Note: New Fiduciary rules do not apply to public 403(b) plans. We encourage all participants to have any advisor they plan to work with sign the 403(b)wise Advisory Fiduciary Pledge.