Changes to 457 Deferred Compensation Providers
Posted 11/04/20 (Wed)
The NDPERS Board changed the requirements that companies must follow to become, or to remain, authorized providers for the NDPERS 457 Deferred Compensation plan starting January 1, 2021. This plan offers an avenue for members to save for their retirement.
What is changing?
Currently, there are nine companies that work closely with NDPERS as authorized providers for this plan. Two of the organizations, TIAA and Bank of North Dakota, adhere to the fiduciary standard already.
NDPERS requested the additional 457 Deferred Compensation providers to sign an amendment to the existing contract with NDPERS. The amendment required participating investment providers to act as fiduciaries when working with NDPERS members, which means acting in the best interest of our members when providing financial advice.
This table summarizes the decision of each of the participating providers.
|ACTING AS FIDUCIARIES ALREADY||ACCEPTED AMENDMENT||DECLINED AMENDMENT*|
|TIAA||American Trust Center||AXA Equitable|
|Bank of North Dakota||Waddell & Reed Financial Services||Jackson National Life|
|Nationwide Life||Mass Mutual|
*Several of the current providers did not sign the amendment. Therefore, starting January 1, 2021, these companies will not be considered authorized providers for the 457 Deferred Compensation plan.
This impacts new participants in the 457 Deferred Compensation plan who
join on or after January 1, 2021 or current participants who switch their
provider on or after January 1, 2021.
Learn more about the 457 Deferred Compensation Plan and how it helps NDPERS members develop a strategic plan for their financial success in retirement.