Oftentimes, companies provide 401(k) retirement plans for their employees, including a mix of prudent investment options. Millions of Americans—like public school teachers and clergy members—however, are not offered these plans, forcing them to rely of 403(b) plans. Ironically, the people who do the most good get the worst retirement plans. 403(b) plans carry excessive investment fees that can cost the owner tens of thousands of dollars or more. Further, these accounts are not subject to the more stringent rules and consumer protections that the average 401(k) plan is. This Article details several stories of public schools teacher’s fight to retire efficiently.
See Tara Siegel Bernard, Think Your Retirement Plan Is Bad? Talk to a Teacher, NY Times, October 21, 2016.
Special thanks to Naomi Cahn (Harold H. Greene Professor of Law, George Washington University School of Law) for bringing this article to my attention.
