Higher Education Faculty Like a Few Choices in 403(b) Plan Vendors

September 21, 2007 (PLANSPONSOR.com) - In a recent survey of over 500 faculty in colleges and universities, Fidelity found 51% of faculty said having two to three 403(b) plan providers would be ideal.

A Fidelity announcement said only a small number of respondents (4%) indicated they want only one provider.

Vendors included in the 2006 NTSAA (National Tax Sheltered Accounts Association) & Cerulli Associates 403(b) Vendor Survey in April said the two greatest impacts of the 403(b) regulations would be an increase in administrative issues they will need to address and vendor consolidation (See 403(b) Vendors Brace for Change ).

The final 403(b) regulations were issued last month, basically designed to make 403(b) plans more like 401(k) arrangements (See Rules/Regs: Waiting Room ).