Individual 403(b) annuity contract converted to a group 403(b) annuity contract?

[Guest calcu]

We have a situation where an employer/sponsor of a 403(b) is switching vendors. Assume that the money at the prior vendor had been contributed pursuant to an individual annuity contract arrangement, the new arrangement is a group annuity arrangement. Is there a problem with transferring funds from an individual annuity contract to a group annuity contract? The funds will still be subject to the 403(b) rules, such funds will just be part of a group contract instead of an individual contract. Concerns? Thoughts? Any secondary materials on this?

Thanks

[Guest dietpepsi]

I don't see any concerns. I see it happen a lot. If the individual 403(b)'s were already with only one vendor it sounds like the 403(b) plan is already subject to ERISA. The only concern is, any potential surrender fees from the individual annuities.

[jquazza]

I think the problem is that the sposnor doesn't have any control over the individual contracts.