Public School Teachers
403(b) Plans
Many public school districts offer teachers a large array of options to save for retirement, but it’s not always clear who is looking out for teachers’ interests. These options can come with exorbitant hidden fees or perform poorly. We can help you identify such wrongdoing and recover your lost retirement savings.
What is a 403(b) plan?
A 403(b) plan is a type of retirement plan that allows teachers to save pre-tax money from their paychecks. This money is typically invested in mutual funds or annuities and the contributions and earnings are not taxed until the money is withdrawn, usually in retirement. This allows money to grow tax free over time.
However, like 401(k) plans, 403(b) plans are vulnerable to conflicts of interests and excessive fees. Teachers may face a wide array of options with little help in choosing. Some states, including California, have therefore enacted laws that require 403(b) plan providers to publish important information about their investment offerings so that teachers can compare them.
When should I be concerned about my 403(b) plan?
Teachers are sometimes steered into poorly managed investments that charge hidden or excessive fees. Here are some red flags that might raise some concerns:
Your account is failing to grow as you would expect. Your retirement account should ideally grow each year, giving retirees a solid nest egg by the time they retire. If your account is failing to grow over several years, your 403(b) investment may be poorly managed or charged excessive or hidden fees.
You have been steered into working with a specific 403(b) plan provider. Teachers usually have abundant choice in selecting their plan provider. Has your district steered you into working with a particular one? This may raise concerns that the district is receiving improper kickbacks from that provider.
Active Cases
We are currently representing California public school teachers in several class actions against financial services companies for charging unauthorized and undisclosed fees on teachers’ retirement accounts. We are seeking to recover these fees for teachers.
Americo Financial Life and Annuity Insurance Company
Life Insurance Company of the Southwest (LSW)
Midland National Life Insurance Company
Metropolitan Life Insurance Company (MetLife)
North American Company for Life and Health Insurance
Why should I work with Engstrom Lee?
Our attorneys have brought the first class actions of their kind against 403(b) plan providers that have caused teachers to pay undisclosed and unlawful fees from their retirement accounts.
We have a substantial record of success in helping retirees recover retirement savings squandered due to self-dealing or general mismanagement.
How can I learn more?
If you believe your 403(b) plan is not (or was not) managed fairly, contact us by filling out this form.
An attorney may reach out to you directly to learn more about your plan. It doesn’t cost anything to speak to one of our attorneys and you’re under no obligation to take legal action after talking to someone about your rights.