YOU HAVE FOUND OUR OLD WEB SITE. BE SURE TO CHECK OUT OUR NEW AND IMPROVED SITE!     AB 2506 Claims vs. Facts As AB 2506, which seeks to streamline and improve California 403(b) plans, works its way through the legislative process myriad "anonymous" misleading claims regarding this bill have surfaced. Supporters of AB 2506 address these claims below.     April 28, 2002 Claim: This bill, if passed, will force you to stop your current 403(B)/TSA deposits with your current company.   Fact: You can keep money, continue contributions and your relationship, with your existing company and financial advisor.   Claim: The bill, if approved, will create a monopoly for the State Teachers Retirement System (or involving VALIC) and the insurance company TIAA-CREF. Your freedom of choice is about to be gone forever.   Fact: There will be no monopoly. There will be a more competitive marketplace featuring reasonable choice between high-quality 403(b) vendors, objective information and financial education. No particular provider is advantaged. Teachers and educators are the beneficiaries.   Claim: STRS will select 403(b) vendors.   Fact: Absolutely not. Major 403(b) vendors in California agree that registration will add value. The STRS role under AB 2506 is that of registration, not selection.   Claim: Others will dictate your financial future.   Fact: Nothing is further from the truth. AB 2506 empowers teachers by establishing a California-specific registration where companies show their fees, expenses (many reports of these being kept hidden from current clients) and services. With this information, consumers can make a more informed choice regarding which 403(b) provider best supports their financial goals. No one dictates what choice the individual teacher makes.   Claim: The UTLA (or STRS) is trying to control where your money is invested.   Fact: The UTLA, as sponsor, STRS and other supporters of this legislation, want their members to have access to objective information and education so that they will not feel "ripped off" after purchasing a 403(b) vehicle.   Claim: The bill changes the right to change my 403(b) provider when I want to.   Fact: This statement is not accurate. Employees may change their 403(b) provider, transfer funds and exercise all of their current prerogatives. They will have additional information and education making these important decisions.   Claim: Thousands of agents/brokers will lose their jobs.   Fact: Currently, participation in 403(b) among public K-14 is one-third to one-half the participation level in independent education, public higher education, other non-profits (Sprectrem Group). Thousands of California K-12 teachers are not taking advantage of 403(b) retirement savings opportunities. Publicity in a statewide database, financial education and reasonable choices made possible by AB 2506 will help increase participation, creating a tremendous opportunity for honest agents/brokers.     Home | Disclaimer | © 2002 403(b)wise. All rights reserved.				Related Information For more information on AB 2506 see the California 403(b) page.