In Practice January 6, 2009

Questions 403(b) Participants Might Ask

As 403(b) plan sponsors and advisers have prepared for new Internal Revenue Services regulations in effect as of January 1, no doubt communications with participants about the new environment have begun, but have you told them everything?
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Aside from the list of providers they are offered in their plans and new procedures for loan and distribution requests, participants may have many more questions to assure them that the plan and their assets are being administered appropriately and about how best to take advantage of this retirement savings vehicle.

Security Benefit, a provider of consulting and administrative services, has come up with a list of questions you should be prepared to answer:

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  • What has the school administration done to prepare for the January 1 compliance deadline?
  • How have the administration and teachers’ associations worked together on this issue?
  • Was our plan compliant by the IRS deadline? If not, what impact does that have on me and my retirement assets?
  • What changes should I expect and when will I get more information?
  • Do I have to transfer my current assets to a new provider?
  • What are the fees and expenses of the new providers?
  • Who will help me in making these changes and what kind of service can I expect?
  • How should I decide which provider to select?
Deals & People January 6, 2009

Fidelity Names Former Evergreen CEO to Institutional Services Post

Fidelity Investments named Peter Cieszko, former president and CEO of Evergreen Investments, as president of Fidelity Investments Institutional Services Company, Inc.
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Cieszko will join Fidelity this month and report to Michael K. Clark, president of Fidelity Institutional Products Group. “With the Institutional Products Group, we are aggressively building a market-leading organization serving a diverse set of intermediary markets that has the scale, flexibility and innovative capabilities needed to win in a turbulent and changing business environment,” said Clark, in the Fidelity announcement.

Prior to joining Fidelity, Cieszko was president and CEO of Evergreen Investments, the investment management arm of Wachovia. Since 2006, he also held the position of president of Global Distribution and Product Management at Evergreen with responsibilities for the firm’s long-term growth strategies including domestic and international sales and distribution, product development, and product management, according to the announcement. Cieszko joined Evergreen from Legg Mason, where he served as head of U.S. Distribution.

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Fidelity Investments Institutional Services Company, Inc., which manages $272 billion in assets, is a provider of investment management services through more than 1,000 financial institutions and 44,000 advisers.

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