The Rise of State Run 403(b) Programs?
![](https://substackcdn.com/image/fetch/w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fbucketeer-e05bbc84-baa3-437e-9518-adb32be77984.s3.amazonaws.com%2Fpublic%2Fimages%2Fc3d22fe7-54e4-4da8-a141-cc095f347ab2_400x300.jpeg)
Most states offer some sort of multiple employer deferred compensation plan (457(b)), far fewer offer a similar 403(b) program, but this might be changing.
Some states offer the 403(b) plans through a retirement system, others through an office like the Treasurer. Most of these plans appear to be low-cost in nature and some are downright cheap!
Are state run 403(b) programs the future for 403(b)?
Perhaps, but they lag far behind in assets and usually lack a salesforce. With a few tweaks, they could easily rise to prominence - though the opposition to them is quite fierce. Just the mention of a state assembly wanting to offer such a program and anti-fiduciary forces descend like moths to a flame.
I did a little research and came up with the following states that offer (this doesn't mean it's available to all school employers in that state) a 403(b) program:
Arizona
California
Connecticut
Delaware
Iowa
Maryland
North Carolina (launches this summer)
Vermont
Florida (not actually a state plan)
Wisconsin (this is a union run program, but has the same effect)
These programs are run by mainstream providers - ING, Great-West, Nationwide, TIAA-CREF and VALIC to name a few.
Which state will be next?
Scott Dauenhauer CFP, MSFP, AIF
@403badvocate