 |
Controversial Texas 457(b) Legislation Fails to Come to a Vote
|
| |
Texas legislation SB 1243 which sought to apply state 403(b) rules to the 457(b) failed to come to a vote before the
close of the 78th Legislative Session last week. Current Texas law (SB 273) permits any vendor certified by the Texas
Retirement System (TRS) to sell 403(b) product in Texas school districts. SB 1243 sought to apply SB 273 rules to
the 457(b).
|
| |
Under SB 273, TRS certifies 403(b) products that:
|
| |
 |
charge loads of up to 6 percent
|
| |
|
impose surrender charges of up to 12 years
|
| |
|
charge operating costs of up to 2.75 percent
|
| |
If passed SB 1243 would have effectively killed the Request for Proposal
(RFP) process as any vendor certified by TRS would have been able to offer 457(b) product to school districts.
|
| |
|
|
|
