The Teacher Retirement System of Texas (TRS) was given authority by the Texas Legislature in 2001 to oversee 403(b) companies and products. In our view, they have done an excellent job of fulfilling their responsibilities over the past 16 years while managing to follow complex laws involving hundreds of companies, thousands of products, many third-party administrators and tens of thousands of school district employees.
TRS recently published new proposed 403(b) rules. This summary is intended to provide a high-level description of the new rules and background for the changes. For our school district clients, we do not expect these changes to result in a noticeable difference in your 403(b) plans.
On October 17, 2017 we published material describing the proposed changes in the rules. At the October 27, 2017 meeting of the TRS Board, all of the previously proposed and published rules were adopted with one exception. The one change was that the effective date of the new fee caps was moved from October 1, 2018 to October 1, 2019. This will allow the 403(b) companies adequate time to implement these changes.
For a complete description of all of the changes please click here to view the blog posted on October 10, 2017.
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