Human Resources
Retirement Investors' Club (RIC) 403b Program
Provider Exchange Options
A provider exchange refers to the movement of some or all of your 403b dollars from one RIC investment provider to another provider in the RIC plan.
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(pwe) but has signed RIC's Information Sharing Agreement (ISA), there may be an option to exchange.FROM |
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| Status of Provider | Active | Inactive-ISA with pwe | Inactive- ISA with RIC | |
TO |
Active | contact pwe | contact pwe | contact RIC |
| Inactive-ISA with pwe | not allowed | contact pwe | contact RIC | |
| Inactive-ISA with RIC | not allowed | contact RIC | contact RIC | |
If an inactive provider does not agree to share information with Participants with assets invested in inactive provider products need to be aware that restrictions and/or penalties may exist. You may use the Policy Review Data Sheet to help you ask your old provider questions about your policy. The answers to these questions will help you compare the old product with the active provider products.
Exchanges between active providers are not recommended unless you have been dissatisfied with your current active provider services and/or investments over a reasonable amount of time.
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Consider an Exchange (from an inactive provider)
You may find one or a number of reasons to consider investing with a different provider. Active provider products that include professional money management, flexible payment options, quality service at reasonable cost and no surrender fees. Inactive providers do not always agree to give their investors the same products and services. You may decide to make an exchange if…
- your investment choices are being limited by your current provider
- you do not receive quarterly statements
- you are being denied account information
- your product offers limited distribution options
- you find that you are paying unnecessary fees
- you want to consolidate your investments with one provider
- you want an investment representative in your area
- your investments have underperformed as compared with their peers for a number of years
- you want access to your accounts online
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Compare Providers
First, review the following list of product benefits offered by RIC’s six 403b 2009 active providers. RIC active providers have new and competitive products and services that include:
- A large selection of investments to meet the savings goals and needs of conservative, moderate, and aggressive investors
- Detailed account statements sent to your home address quarterly
- Reasonable fees for variable investments (even a 1% difference can make a big difference over the long term of your investment)
- Competitive fixed-rate investments
- Local investment representatives
- Improved customer service with 24-hour toll-free phone and internet access to your account information
- Ability to change your investment selection at any time
- No surrender fees or restrictions
- No annual contract fees
- Access to self-directed brokerage account (ING only; fees apply)
Second, review your annuity policy or call your inactive provider and request information listed on the Policy Review Data Sheet. Provider contact information may be found on your account statement.
And finally, compare the policy with the active provider investment options, benefits, and fees.
To access active provider information:
- Call an active provider and tell them you are a 403b participant looking for alternatives to your current investments
- Ask them for product information or ask them to meet you at your location to discuss the possible benefits of an exchange and explain investment options
- Ask the provider for reasons why you should choose their firm over the other 5 investment providers. RIC's 403b 2009 Provider Summary gives sample questions to ask providers.
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Exchange Options for Inactive Provider Products
Depending on the provisions of your annuity contract, you may have the option to do an exchange of:
- 100% of your policy value to another provider (surrender charges may apply)
- the annual penalty-free amount (typically 10% of contract value) until the balance is exchanged (some inactive provider policies may not have this option)
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Possible Exchange Restrictions or Fees
Active providers have no restrictions or fees for exchanges.
Your Inactive providers may have surrender charges that limit your ability to exchange part or all of your assets without a penalty. A surrender charge is typically imposed for a set period (5, 10, 15 yrs, etc.) and decreases each contract year from the original date of your policy or the date of each contribution. Check with your inactive provider. If your policy has a surrender charge, there may be an option to exchange your assets over a period of time to avoid penalties.
Be aware that an exchange is completed by selling your investment(s) with the old provider and purchasing new investments with a different provider. Talk to an active provider representative about whether or not exchanging your investments is appropriate for your retirement savings goals and objectives.
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Complete an exchange between inactive providers
The process for exchanging money between providers is determined by the provider's relationship with planwithease and RIC.
| If the provider you wish to move money from has agreed to feed account data to planwithease, then the exchange may be made by following these steps. | |||
| Step 1 | Step 2 | Step 3 | Step 4 |
| Confirm that your employer elected to allow the type of exchange |
Contact the distributing provider to obtain required paperwork |
Log onto planwithease.com to request withdrawal authorization | Send planwithease authorization & completed provider paperwork to provider |
| If the provider you wish to move money from will not feed account data to planwithease, RIC will request the exchange for you if the receiving provider has signed RICs Information Sharing Agreement (ISA). Follow the steps listed below. | ||
| Step 1 | Step 2 | Step 3 |
| Contact both distributing & receiving providers to obtain required paperwork | If yes, confirm that the receiving provider has signed the RIC Information Sharing Agreement |
If Yes, submit paperwork to RIC along with required documentation (proof of age and employment status) |
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