Your California School Employee Retirement Product Information Bank


  Before You Stop Your Contributions, Read This!  

If you currently contribute to a 403(b) vendor that is not registered on the Web site or if you are planning on changing employers, you should not stop your contributions until you’ve read California Education Code, section 25113.

25113 A local school district, community college district, or county office of education may not forward annuity or custodial account consideration to the vendor of any unregistered 403(b) product, except insofar as an employee continues making contributions to an unregistered product or products purchased or entered into prior to the implementation date of the impartial investment bank, as established by this chapter.

It is highly possible that once you stop your current contributions, you may not be able to start contributing to that same vendor if they are not on the Web site. You may also lose the ability to contribute to the same vendor if you change employers and your new employer does not have that vendor on their approved vendor list. Therefore, you should make every effort to verify this information and make appropriate changes based on your discovery. Please speak to your payroll or 403(b) representative regarding their administrative process in regards to this procedure.

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