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Tarrant County stops new contributions to Lincoln Financial 457(b) plan, offers transfers to county plans
Summary
The court voted unanimously to discontinue new contributions to Lincoln Financial’s 457(b) plan beginning Jan. 1, 2026, after HR reported Lincoln cannot meet SECURE Act 2 requirements; participants may keep existing accounts or transfer funds to approved vendors.
Tarrant County will stop accepting new payroll contributions to the Lincoln Financial 457(b) deferred‑compensation plan beginning Jan. 1, 2026, the Commissioners Court decided Tuesday, while allowing current account holders to maintain their balances or move funds to an approved county plan.
County HR staff said Lincoln Financial’s plan cannot be brought into compliance with SECURE Act 2 rules that require certain plan features (including Roth options) by 01/01/2026. HR reported negotiations with Lincoln began in 2022 but the vendor could not meet technical requirements. Staff presented options: (1) move participants to other approved 457(b) vendors (Nationwide or CoreBridge) via plan‑to‑plan transfers; or (2) terminate new employer contributions while preserving participant account balances.
Commissioners voted unanimously for a motion that discontinues new contributions to Lincoln after 01/01/2026, allows participants to keep existing accounts or transfer plan‑to‑plan without county‑imposed transfer fees, and authorizes HR to assist employees and retirees with communications, town halls, and transfer logistics. HR noted approximately 80 active employees are using Lincoln accounts; staff pledged to send targeted communications (emails, postcards, retiree newsletters, public web pages and town halls) and to help those without email access.
The court asked staff to coordinate transfer assistance, clarify any administrative fees for individual transfers, and report back on outreach and transition metrics.
