Knox County Board evaluates USI Consulting's retirement plan proposal for teachers

A pivotal discussion unfolded during the Knox County Schools Board of Education work session on April 7, 2025, focusing on the potential transition from the current retirement plan provider, Value Teachers, to USI Consulting Group. The board is considering a contract with USI that would make it the sole vendor for a specified term, raising concerns about the implications for teachers currently enrolled in the existing plan.

Board members expressed apprehension regarding the financial penalties teachers might face if they switch providers. Some reports indicated that fees for moving from Value Teachers could range from $2 to as high as $10,000, depending on individual circumstances. This has sparked worries about the impact on teachers' retirement savings and their ability to make informed choices about their financial futures.

USI's President, Bob Cross, addressed these concerns directly, emphasizing that their products come with no fees or penalties for moving funds. He reassured board members that teachers could transfer their accounts without incurring costs, a stark contrast to the current provider's structure. Cross highlighted that USI's offerings include a guaranteed interest rate and local staff who are fully licensed to assist teachers in navigating their options.

The board is set to vote on the contract soon, with discussions indicating a desire for a smooth transition that minimizes disruption for teachers. Board member Templeton raised a critical point about ensuring that teachers nearing retirement are not adversely affected by the change, suggesting a potential retroactive start date for the new contract to accommodate those currently invested with Value Teachers.

As the board prepares for its decision, the outcome could significantly reshape the retirement landscape for Knox County educators, making it essential for all stakeholders to stay informed and engaged in the process.