Board hears debate over single-vendor 403(b) contract as teachers warn of penalties

The Knox County Board of Education heard extended discussion on April 7 about a proposed contract to make USI Consulting both the third-party administrator and sole vendor for the district's 403(b) plan; the item is scheduled for a vote at the board's regular meeting on Thursday, April 10.

The debate centered on whether the district should award a single, bundled contract or unbundle the administrator and vendor roles to allow multiple providers. Board member Ms. Fontenot Ridley told the board that, amid recent market volatility, "people have lost thousands of dollars in their retirement ... I just think maybe we need to think about honoring the couple of thousand teachers who have their money invested with Value Teachers and honor their decisions" (transcript block starting 2752.525). Legal and procurement staff said the RFQ was run to select an administrator-plus-vendor and that the district…