Seminar Questions – Retirement Planning

Does the district have a financial interest in these vendors (i.e., does the district get some type of kickback or other benefit?)

It is unlawful for a district to receive any type of “kickback” from a 403(b) vendor. Districts often hire Third Party Administrators or TPAs to handle the compliance and administration for the 403(b) program it offers. Sometimes, the TPA chosen by the district is affiliated with one or more 403(b) vendors. CA Education Code Section 44041.5(d) requires that the TPA disclose any fees or compensation the TPA receives from any affiliated parties or 403(b) vendors.