Knox County Schools reviews USI contract affecting 403b retirement plans for teachers

In a recent work session held by the Knox County Schools Board of Education, discussions centered around the potential transition of retirement plan management from Valued Teachers to USI Consulting Group. The meeting, which took place on March 3, 2025, highlighted the concerns of board members and teachers regarding the implications of this change.

As the meeting unfolded, board members expressed a commitment to fulfilling their fiduciary responsibilities while ensuring that the needs of teachers were met. One board member emphasized the importance of maintaining benefits for staff, noting that many teachers felt they were losing something valuable in the proposed transition. This sentiment resonated throughout the session, as several members acknowledged the need for transparency and communication with the 2,800 teachers affected by the decision.

The conversation delved into the specifics of the retirement plans being offered. USI would provide a 403(b) plan, along with other investment options, while teachers currently enrolled with Valued Teachers would face limitations if the contract with USI is approved. Teachers would have the option to keep their existing accounts but would not be able to contribute further, raising concerns about the potential financial penalties associated with moving their investments.

Questions arose regarding the fairness of the procurement process, particularly as Valued Teachers specializes in 403(b) plans, while USI offers a broader range of financial products. Board members voiced apprehension that this disparity could disadvantage Valued Teachers, which has a strong reputation for customer service and support.

As the meeting progressed, representatives from both USI and Valued Teachers were present to address inquiries. USI's president assured board members that they offer a variety of mutual funds, including options with guaranteed returns, but acknowledged that the specifics of penalties for moving investments would vary by individual contracts.

The discussions underscored a critical tension between the desire for cost-effective management of retirement plans and the need to preserve the choices and benefits that teachers currently enjoy. As the board weighs its options, the voices of educators remain at the forefront, emphasizing the importance of making informed decisions that prioritize their financial security and well-being. The outcome of this decision will undoubtedly shape the future of retirement planning for Knox County teachers, leaving many eager to see how their concerns will be addressed in the final resolution.