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Jennings County schools approve Equitable as single retirement vendor, pending legal review
Summary
The school board voted to adopt Equitable as the district’s single retirement vendor pending legal review. The change would consolidate 401(a) assets and offer employees the option to move 403(b) balances; the district cited an estimated $350,000 in annual fee savings for employees.
The Jennings County School Corporation board voted 7-0 to adopt Equitable as the district’s single retirement vendor pending legal review.
The decision follows a district-led request-for-proposals process that, the presenter said, identified about $29,000,000 in combined 401(a) and 403(b) assets across roughly 1,000 participant accounts. "The executive committee voted unanimously to choose Equitable as the new vendor," said Kelly Davis of CSI Advisory, the consultant who conducted the vendor review.
Davis told the board the single-vendor model is intended to simplify administration and lower fees. The district’s review found employees were paying an average of about 1.93% in fees on their accounts; the recommended change to Equitable was presented as producing roughly $350,000 in annual cost savings to employees on an all-in basis. Under the plan presented, Equitable would assume administration of the district’s 401(a) plan; employees’ existing 403(b) balances would remain with their current vendors unless employees choose to move them to Equitable.
Board member Travis moved the motion to adopt Equitable pending legal review; Board member Pat seconded. The motion passed by voice vote, 7-0.
The board’s approval starts a transition process described by the presenter: legal plan documents would move to Equitable for the 401(a) plan, new employees would be enrolled under the single-vendor structure for 403(b) offerings going forward, and employees with existing 403(b) balances would be given the option to remain with their current provider. Davis said Equitable will assist with the administrative transition once legal review and contracting are complete.
The presentation noted that MetLife currently administers the district’s 401(a) plan and that Horbridge and Voya were among other 403(b) administrators in use. The consultant said the district solicited proposals from 10 vendors, received five full responses and interviewed four finalists.
Board members did not request additional public hearings; the approval was contingent only on completion of legal review.
