In Practice November 19, 2008

Teachers Union Wants to Keep Adviser Choice

The Utica Teachers Union opposes a decision to limit the district employees’ choice of a financial adviser.
Reported by

Utica Teachers’ Association President Larry Custodero told the school board on Tuesday of the opposition, armed with 400 signatures. The Utica Observer-Dispatch reports that Custodero said the board’s recommended choice of Confidential Planning SmartChoice as the exclusive third-party adviser doesn’t leave room for the union to have its say.

“This proposed exclusive breaks with decades of past practice in offering employees choice of investment companies,” said teacher David Schiavi, who also is a financial adviser and works with district employees, according to the news report.

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Business Official Maureen Albanese said she recommended Confidential Planning because it would not charge the district for its services while other vendors will. However, district employees believe the district will not be charged because fees will be passed to them.

The board is scheduled to hear presentations at its meeting next week from two other vendors before it will make a decision.

New 403(b) regulations effective January 1 have led many plan sponsors to pare down vendor offerings (see The New 403(b) Model: Exclusive versus Multiple Vendor Programs). Such decisions are prone to participant backlash.

In October, Baltimore County’s school board unanimously voted down a recommended contract with Lincoln Financial Group to be the system’s exclusive 403(b) provider (see Baltimore School Officials Give Thumbs Down on 403(b) Vendor Consolidation).

Products November 19, 2008

MetLife Expands Workforce Retirement Education Program

MetLife announced the national expansion of its retirewise program.
Reported by

Launched in 2007, the retirewise program was created to meet the needs of employees, particularly those approaching retirement, who are interested in receiving comprehensive and objective retirement education and guidance in the workplace, MetLife said in an announcement.

retirewise is a series of four, two-hour proprietary, solutions-oriented seminars that provide a comprehensive view of retirement. According to Metlife:

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  • The first seminar helps employees begin to envision their retirement and how they will finance it by reviewing basic money principles and their relevance in retirement.
  • The second seminar focuses on creating and protecting wealth and introduces employees to the retirement income planning process.
  • In the third seminar employees learn how to structure a retirement income stream and protect against unplanned expenses.
  • The fourth seminar helps employees understand how to make the most of what they have, starting with how employee benefits fit into their retirement plans.

At the conclusion of the seminar series, employees can choose a complimentary, face-to-face consultation with a MetLife representative. Spouses, parents, and other family members are also encouraged to participate in retirewise.

More information is available at www.metlife.com.

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