403(b) Retirement Savings Plan:
Your Opportunity to Save More for Retirement
Review the 403(b) Plan Document effective April 3, 2017.
Frequently Asked Questions on LPSS 403b
Q: I am not currently making a 403b retirement contribution but would like start or at least discuss how a 403b might fit into my retirement planning?
A: Contact Cornerstone Financial Group, our local consultants at their Lafayette office at 213 N. College Road by calling them at 337-233-6066. Let them know you are with the Lafayette Parish School System 403b plan and would like to discuss supplemental retirement planning options.
Q: If I have a current 403b deduction and I do nothing, what will happen?
A: The same amount will be deducted pre-tax from your check and sent to a default investment fund with MassMutual based on your age. The older you are the less aggressive the investments in the fund will be. We encourage you to contact Cornerstone Investments to review the default fund you are placed in and all the other investment options that are available to you.
Q: If I still want to contribute to my 403b but don’t want my deduction to go into the default account whom do I contact to help me make decisions on how to invest my contributions?
A: Contact Cornerstone Financial Group, our local consultants at their Lafayette office at 213 N. College Road. Cornerstone has a great deal of experience in transitioning and servicing large 403(b) plans like ours in South Louisiana. If you would like to speak to someone at Cornerstone about the investments available to you, please contact them at 337-233-6066 and let them know you are with the Lafayette Parish School System 403b plan.
Q: If I have a current 403b deduction with an old vendor and I don’t want to continue making contributions to my 403b, what should I do?
A: Complete a 403b Salary Reduction Authorization form and check the cancel box and get it to payroll at least 1 ½ weeks before pay day. The form can be found on our website at http://www1.lpssonline.com/uploads/403bSalaryReductionAuthorization.pdf
Q: Can I continue to make 403b contributions through payroll deduction with my previous vendor.
A: No. It was the objective of our Committee to provide an excellent retirement plan for our employees and ensure the quality and cost of the plan is competitive. After a thorough due diligence review, there was a decision made to go with a sole plan provider for many different reasons, some of which include reduced fees for the employee, better education capabilities and an investment platform that offers more choices and investment options.
Q: Can I continue to make 403b contributions to the LPSS plan with my previous vendor without going through a payroll deduction?
A: No, the LPSS 403b plan and its compliance with IRS guidelines is the responsibility of the Lafayette Parish School System. In that regard, LPSS chooses the vendor to provide the platform for the investments in the plan and manage compliance with the associated Federal regulations. Vendors no longer associated with the LPSS plan can no longer accept contributions to our plan after the conversion. These vendors may offer you alternative investment options, but these contributions are not part of the LPSS plan and may or may not be on a pre-tax basis. In addition, the fees associated with these investments were not subjected to the scrutiny and advantage offered by the competitive process used to select the investment platform now offered by the LPSS 403b program.
Q: Can I leave the current balance in my 403b account with my current provider?
A: Yes, unless you initiate rolling some or all of your account balance to MassMutual the funds will remain with your current provider. However, we do encourage you to speak with a MassMutual representative to learn if moving your funds to MassMutual might be advantageous to you. MassMutual serves in a contractual fiduciary capacity to the school system which means they are bound to represent your best interest in this conversion. If you did not attend a meeting and would like to speak with a MassMutual representative about moving your account, please call 1-800-743-5274.
Q: What if I have a loan on my current 403b with a previous vendor?
A: All loans with previous vendors will continue to be handled by those vendors in the same manner they have always been handled.
Q: If I choose to keep my current 403b balance with a previous vendor can I make a new loan on those funds?
A: No, if you choose to keep your funds with a previous vendor new loans will not be allowed on those funds. New loans on 403b funds contributed or transferred to MassMutual will be allowed and will be handled by MassMutual. All loan payments on loans from MassMutual will be deducted through a payroll deduction.