Deals & People October 13, 2009

Texas Universities Select VALIC as 403(b) Plan Provider

VALIC has been chosen by the University of North Texas (UNT) and Texas Woman’s University (TWU) as a 403(b) plan provider.

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VALIC is one of four plan providers selected by UNT with the goal of creating a consolidated 403(b) program that is administered in compliance with the new 403(b) regulations. VALIC was chosen for its open investment platform, and employee education, administration, and plan compliance services, according to the announcement.

The University of North Texas System is made up of UNT System Administration, the University of North Texas, the University of North Texas Health Science Center at Fort Worth, and the University of North Texas Dallas Campus, soon to become the University of North Texas at Dallas. The UNT Web site shows the other three plan providers are Fidelity, ING, and TIAA-CREF.

For TWU, VALIC will serve as one of six providers. The announcement said VALIC was selected for its competitive offering of investment services and products, employee education through its staff of financial advisers, and plan compliance services. Texas Woman’s University is an institution of higher education that receives public funding from the State of Texas with four campus locations in Denton, Dallas, and Houston.

According to the TWU Web site, the other plan providers are Fidelity, ING, Lincoln National, MetLife, and TIAA-CREF.

Through the relationship with VALIC, UNT and TWU plan administrators and participants will gain access to VALIC Retirement Services Company’s Retirement Manager, a vendor-neutral solution for managing multiple retirement plans and multiple vendors. It provides plan sponsors with administrative and compliance services while offering plan participants a single point-of-access to retirement plan information, financial planning tools, and transaction capabilities across retirement products and carriers.


Compliance October 13, 2009

Insurance Agent Accuses Firm of Stealing 403(b) Clients

An insurance agent who purchased a book of clients from a retiring co-worker is suing the firm with which he is associated for stealing some of that business.

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The North Platte Bulletin in Nebraska reported that Randy and Lance Carlson of Carlson Financial Group are accused of transferring clients with 403(b) accounts to Lance Carlson after an informal agreement of the purchase but before the finalized sale. Glen Hogan claims that the Carlsons incorrectly told the retiring agent that he was not licensed to handle the contracts, even though they were aware that the files were to be sold to Hogan.

Both Hogan and retired agent Daryl Broberg said that a letter sent to them and Randy Carlson by Life Investors Financial Group after the agreement effectively transferred any and all clients with whom Broberg was associated with to Hogan, according to the news report. Broberg said in his affidavit that he never authorized any transfers of clients to any other agents.

Broberg verified Hogan’s accusation that the Carlsons transferred several client files from him under the mistaken pretense that he was not licensed to handle 403(b) retirement plans.

In the letter to Randy Carlson, Hogan stated that he never intended for Lance Carlson to take over any of the client cases, only to continue to work with his existing securities clients in that capacity. “It appears that you are trying to steal cases that I bought. You are undercutting me and my agents by going to the clients for these transfers. Why should I allow Lance to take any clients he wants?” Hogan wrote, according to the North Platte Bulletin.

Hogan, who allegedly paid Broberg $65,000 for the client book, said Lance had never offered to purchase any of the business, and threatened litigation if he was not made whole.

In addition to the court action, Hogan also filed a motion for a temporary restraining order preventing the Carlson’s from providing any services to the clients in Broberg’s book, saying that by the time a formal hearing is concluded, it will be too late for him to re-establish relationships with the clients.

The Bulletin said Hogan declined to comment on the story and Randy Carlson said he could not comment as he was not yet aware of the lawsuit.

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