Author Topic: What are the financial implications for an employer to offer Vanguard?  (Read 986 times)

TheThirstyStag

  • Bristles
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Hi all,

My employer only offers TIAA-CREF as the investment carrier for our 403(b) plan, along with their >0.4% expense ratios.  I have an opportunity to put forth a proposal to request that my employer offer Vanguard (or possibly Fidelity) as a second carrier.  What are the implications for an employer to do this?  Are there any financial implications, or is it entirely about training their HR staff to handle a second option? 


On a related note, we only have FSAs through our employer and one, low-deductible PPO health plan.  How would I go about making an analogous argument for them to offer a HSA?

I'm certainly privy to the mustachian advantages to having these savings options.  I have no clue what the employer end looks like, and need to understand it in order to make a solid argument.

Thanks in advance!

Indexer

  • Handlebar Stache
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I have no idea.  There is normally an admin, record keeping, etc. 

I can say that Vanguard probably has staff that specialize in this sort of the thing though.  I would just call and say you have questions about setting up a 403b.  Ask what the process normally looks like and see if you can get any brochures and stuff.

For the HSA.  Well you do have to have a high deductible plan as an option in order to have an HSA.

TheThirstyStag

  • Bristles
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  • Posts: 301
I figured as much for the HSA.

Does anyone have any experience on the hr/benefits side of this?   I'm really looking to get a handle on the fees associated with an addition like this.