What’s the verdict?
Well, earlier this year, the National Tax-Deferred Savings Association (NTSA) published both independent findings and the results of their own research. Their headline is: Participants benefit if they can choose between multiple 403(b) providers, a recent white paper says.
And it continues to read…
“In “Benefits of Multiple 403(b) Providers: Having a Choice Positively Affects Participant Behaviors,” (December 2020) Edward Kenney and Tali Yarmush of Equitable, with Equitable Research partner Zeldis Research Associates, find that there are many benefits to making multiple 403(b) providers available to plan participants.
These findings take on heightened importance, Kenney and Yarmush suggest, because with growing uncertainty about whether pensions can fully cover retirement expenses, 403(b) plans are “progressively becoming more important to teachers’ retirement planning.” And they cite as further support for this position the NTSA’s findings in its study, “Improving Retirement Savings For America’s Public Educators,” (January 2021) regarding the effects of state pension funding gaps and benefits cuts in state retirement plan systems.”
We think these are critical findings for you as Plan Sponsors, and for your Employees. Please take a moment to read more.