Quick action restores payroll deductions to 403(b) accounts for PSEA members
Thanks to the cooperative work of PSEA, Kades-Margolis Corporation and Employer Admin Services, Inc., PSEA members can continue to make contributions to their chosen 403(b) accounts.
After new 403(b) regulations were imposed, many school employers selected a "third party administrator" to administer their 403(b) plans. Employer Admin Services, Inc. (EAS) has been selected by the majority of Pennsylvania school employers. At the urging of PSEA and Kades-Margolis, Vanguard and EAS reached an agreement that will allow members to continue contributing to their 403(b) plans through payroll deduction .
EAS has issued revised Service Provider Agreements for school employers that offered Vanguard Mutual Funds in the past. If employers sign these agreements, Vanguard Mutual Funds will be included in the districts' 403(b) plans and made available to all employees in those districts. It will be school districts' responsibility to notify employees of the change to the district 403(b) plans and the opportunity for employees to directly contribute to their 403(b) accounts.
Important to note: Employer Admin Servinces, Inc. charges all 403(b) suppliers a nominal fee of $10 per participant each year for its services. Vanguard Mutual Funds has not agreed to pay this fee, so the $10 will be paid by participating employees.
PSEA thanks Kades-Margolis and EAS for their work, to help PSEA address a significant concern of our members.
PSEA does not endorse EAS or Vanugard Mutual Funds. PSEA's work with Kades-Margolis was done to help members regain the ability to contribute to their Vanguard 403(b) accounts.