Consolidating multiple providers 403(b)

Hello, 

I don't deal with any other TSA plans but I have a plan sponsor looking for help. The TSA plan has employees and former employees with different record-keepers than where new money is going. Can they eliminate those other record-keepers, or are they stuck with the money there? What are some possibilities to simplify this for the PS?

There's a lot that could come into play in trying to do this.  It's been many moons since I've actually handled a situation like this so, the rules may have changed.  I will just add, a lot depends on whether it's an ERISA 403(b) and the language of the contracts with the other custodians/recordkeepers.  Some of these insurance contracts may allow the Plan Sponsor the ability to move the assets on behalf of the participant, but if they are individual annuity contracts, you may need the participant to sign off approving the transfer of their assets.  I'd also suggest confirming if there are any early surrender charges or market value adjustments that would be charged to the plan participant.  If the contract is greater than 10 years old, they have likely met the requirements to be able to transfer the account without penalty.  I have also seen the insurance company try to "push" back and find a reason that the contract cannot be cancelled to move the accounts.  I've had to engage ERISA council in the past and get ALL ORIGINAL signed contracts/documents.  

Hopefully, an easier process now exists and you don't have to jump through these hoops with the client.

Thank you!