Wise Cracks Commentary with Dan and John Arnold Speaks Out on the California 403(b)     Special interests have polluted the 403(b) in California for years. Arcane insurance industry code written by — surprise — insurance interests effectively locks out meaningful vendor competition in California 403(b) plans. Efforts to amend this legislation to grant employers the same control over their 403(b) as private sector companies enjoy over their 401(k) plans was — surprise — defeated last year by insurance interests.   But oh, how quickly things change. Today, California is run by a former Kindergarten Cop who bills himself as the "people's governor." More importantly, he promises to stamp out special interest influence. We spoke with the new governor about the state of the 403(b) in California.   Wise Cracks: Congratulations, governor. Lets get right to it. Is it true you once invested in a two-tiered annuity product that sported a huge surrender fee?   Arnold: I have to tell you that I always say, that wherever there is smoke, there is fire. That is true. So I want to say to you, yes, that I have behaved badly sometimes.   Wise Cracks: Special interests have destroyed the 403(b) for many Californians. What do you know about these kinds of relationships?   Arnold: Here's how it works: Money comes in — favors go out. The people lose.   Wise Cracks: Many 403(b) participants say that high fees are bleeding their accounts dry.   Arnold: If it bleeds we can kill it.   Wise Cracks: Governor, have you ever killed anyone?   Arnold: Yes, but they were all bad.   Wise Cracks: Do you have a message for union officials who accept "donations" from vendors, and employers who fail to offer quality 403(b) investment choices to their employees?   Arnold: Game over.   Wise Cracks: It is often very difficult for 403(b) investors to find out exactly what they are paying in fees. Do you have a solution?   Arnold: Open the books and audit everything!   Wise Cracks: Thank you very much for your time.   Arnold: Now let's go from the dirty politics back to the future of California.   Disclaimer: Arnold has said all of these things. Just not to Wise Cracks. But you have to believe that if the governor-elect ever become aware of how special interests pollute the 403(b) in California he would be none-too-pleased.   Home | Disclaimer | © 2001-2003 bWise Guys, LLC. All rights reserved.				Back to the latest Wise Cracks