Millersville council approves switch of employee 457(b) plan administrator to Equitable Financial

The Millersville Borough Council voted to move the borough employees’ 457(b) retirement plan administration from Bright House Financial to Equitable Financial following repeated administrative problems with the incumbent vendor.

Council members discussed the switch during the personnel committee meeting, where Borough Manager Rebecca said the plan is used by “about 75% of our staff” and described a payment-processing problem that was escalated to the Pennsylvania attorney general’s office. “We were sending payments… the payments were being cashed by Bright House, but were not being put into the employee accounts,” Rebecca said.

The issue underpinned the committee’s recommendation to change vendors. Rebecca said the borough’s broker, Patrick, “helped shop around” and that Equitable Financial offers electronic payments and additional administrative features that should prevent checks from being lost. She also told council the borough does not contribute to the 457(b) plan and that transition fees will be covered by Equitable, meaning “there’s no cost to the employees either.”

A council member moved the approval; another council member seconded the motion and the committee voted in favor. When asked if employees supported the change, Rebecca said employees are likely to back a move that improves trust and returns, noting those whose payments were not credited lost interest on those funds. One council member said, “If I’d be an employee, I’d… want to change,” expressing support for the switch.

Rebecca said the borough’s broker will attend the end-of-month meeting to answer additional questions before the council’s final vote. The personnel committee’s approval moves the change forward for ratification at a subsequent full-council vote.

The action is limited to administration of the voluntary 457(b) accounts; the borough does not add contributions on employees’ behalf.