“I am hopeful that we can encourage more opportunities for municipalities, particularly school districts, to
partner with the state,” Mr. Lembo said in a statement, “including through both the 457 and 403(b) plans.”
Joshua B. Gottfried, a financial planner in Connecticut who works with many teachers, has said he often tells
them to avoid the 403(b) altogether, given the dismal lineup of available investments and the high fees.
The comptroller already has the authority to market the state’s 403(b)
and 457 plans — another type of retirement plan offered to state and local government workers — to school districts and other municipal employees.
A bill passed by the Connecticut Legislature tries to improve this situation by requiring all 403(b)
retirement plan providers to disclose fees and compensation to state and municipal workers.
The legislation — which will take effect in 2019, but could be changed to 2018 as language in the bill is completed — would require companies
that operate 403(b) plans to disclose the charges and returns (after subtracting fees) for each investment offered.
Connecticut Bill Would Force Fee Disclosures for Teacher Retirement Plans -
By TARA SIEGEL BERNARDJUNE 15, 2017
Public schoolteachers and other education workers in Connecticut should soon have an
easier time figuring out how much they are paying for their retirement investments.
