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Iowa 403(b) Plan Services: Nuts and Bolts

By John Iekel • January 02, 2018 • 0 Comments
Public sector and education-related employers can offer their employees access to 403(b) plans, and the Hawkeye State is among them. The state also provides a supplemental program that offers a variety of services; a look at its nuts and bolts offers a close look at what such programs entail.

They call it the Iowa Retirement Investors’ Club (RIC), and it offers plan administration, compliance, investment options, and services for participating Iowa public sector and education-related employers and employees. The program is intended to:

  • supplement pension benefits;

  • encourage retirement readiness; and

  • help attract and retain quality employees.

The RIC offers not only a 403(b) plan to eligible employees, but also a 457 plan and a 401(a) plan. RIC coverage breaks down in this manner:
 
403(b)     457    401(a)
 Employees of:
1. public school districts
2. area education agencies
3. community colleges
   Employees of:
   1. state agencies and branches
   2. employers covered by the
   Iowa Public Employees'
   Retirement System 
   Employees of:
   1. state agencies and branches
   2. employers covered by the
   Iowa Public Employees'
   Retirement System 

The plans offer the following options:

457 and 401(a)       403(b)
1. fixed rate
2. a variety of mutual funds
3. self-directed brokerage
4. investments screened per policy
5. no restrictions or penalties
     1. fixed rate
     2. a variety of mutual funds
     3. self-directed brokerage
     4. investments screened per policy
     5. no restrictions or penalties 
     6. fixed annuities
     7. variable annuity
     8. mutual funds

The plans’ participation and assets are as follows:

Type of Plan     Active
   Participants
   Annual
   Contributions
   Assets
 403(b)    12,966    $67,691,607    $317,391,302
 457    14,638    $51,210,936    $839,108,297
 401(a)    13,800    $14,790,395    $243,233,286


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