Teachers, public urge board not to eliminate Value Teachers as 403(b) vendor as district plans single plan administrator

Summary

Knox County staff described an RFQ that recommended USI as a combined 403(b) plan administrator and payroll‑deduction provider; public commenters and several board members urged keeping multiple vendors — particularly Value Teachers, which many staff cited for in‑school service — rather than moving to a single vendor model.

Knox County Board of Education staff briefed the board on a procurement process to select a third‑party plan administrator and vendor for district‑facilitated 403(b) payroll deductions. That procurement identified USI (USI Consulting Group) as the recommended administrator and vendor; the procurement, as presented, would make the chosen firm the sole provider for payroll deduction contributions under the district’s 403(b) arrangement.

Ms. Semmelgarn, a district staff member, described the district’s intent as improving fiduciary oversight and compliance with Department of Labor and IRS administration, noting the board’s longstanding rule requiring vendors to maintain a minimum number of participants for payroll deduction eligibility. She said the district sought to “come into full compliance with our fiduciary requirements around transparency and fees, compliance with Department of Labor Standards and the IRS administration of the plans,” and that an RFQ had been run for a provider and plan administrator.

The procurement and its practical effect drew immediate public comment and opposition from multiple Value Teachers representatives and from…

Teachers, public urge board not to eliminate Value Teachers as 403(b) vendor as district plans single plan administrator

Summary

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