457 Provider Search.....top providers?

[Guest ks@pfegroup]

Our firm has been asked to conduct a 457 provider search for a Massachusetts municipality. Can anyone provide us with some guidance as to who the best bundled/unbundled 457 providers are that we should direct the RFP to? Also, are there any recent surveys that rank the various 457 providers?

[Guest Lawrence_Groves]

I recently did a competitor search as my firm provides unbundled 457 administration services.

Some vendors will do it on an investment only basis, others have minimums with regard to either Dollars or Eligibles. As far as who is the top, that is fairly subjective as I have never seen any firm that does it all perfectly every time.

You will want to include insurance companies like American United Life, Lincoln Financial, Manulife, Nationwide, etc as well as mutual fund companies if you want to do a 457(b). Send me an email at lgroves@rjl-pensions.com and I'll forward my list to you. It will give you a start.

[Guest KCW]

You may find information on 457(b) providers at the National Association of Government Defined Contribution Administrator's (NAGDCA) Annual Member's survey.

http://nagdca.org/

[Guest KCW]

The free NAGDCA Industry Member List may be all you need.

http://www.nagdca.org/industry/index.cfm

[mbozek]

Why do you need to provide admin services for a 457 plan? Why cant the plan sponsor permit each participant to direct investments through separate accounts maintained with a discount broker such as schwab or vanguard. Each account would be opened with the employer as owner of the account and the employee would have a power of attorney to make investment decisions but not have authority to make withdrawals. The fees would be paid from the assets. The employee would get a monthly statement of the account from the broker. The investments would include stocks, mutual funds, LI and annuities. The sponsor saves the cost of admin fees.