457 Vendors

[Guest hawkstj1]

We are a city with a 457 plan covering 1000 employees. We have assets of about $25 million. We're not satisfied with our current vendor. Any recommendations out there? Who specializes in our market and what makes them good? All thoughts appreciated.

[Guest Schiff Benefits Group]

Can I assume that you are talking about a 457b plan? If so, there are a number of very good mutual fund companies that have the systems to administer the plans that I have worked with and would love a plan with $25M in assets. Also where is the plan located?

[Locust]

You might consider hiring an unaffiliated consultant to do an RFP. As noted, there are many vendors that would be interested in the type of plan you describe. The RFP process will result in a competitive bid plus you get to see what is out there. You want a vendor that provides as many services as possible - communications, impartial investment advice, good investment choices with low costs, enrollment and payment services. Another advantage of the RFP is that it can make the process less political - it makes it possible to blow off the local, connected, broker if he or she doesn't measure up.

[Guest LVanSteeter]

I know Fidelity does a lot of 457 plans, particularly their Tax Exempt division. You might check with them.