For Employers
California Education Code Sections 25100-25115 requires the California State Teachers’ Retirement System (CalSTRS) to establish and maintain a comprehensive, impartial, online information bank consisting of vendors who offer products as described in Section 403(b) of the Internal Revenue Code, to all employees of California’s local school districts, community college districts, and county offices of education.
California Education Code applies to 403(b) products purchased by both certificated and classified employees, regardless of whether they are CalSTRS members or members of another public retirement system. 403bCompare provides information on available investment options, product performance, participant fees, vendor experience, services offered, and educational content to help school employees understand investment product features and retirement planning principles.
Employers are prohibited from processing salary reduction agreements for, or forwarding any funds to unregistered vendors or unregistered products. Also, if the employers uses the services of a third-party administrator for its 403(b) plan, it is the employer’s responsibility to ensure the third-party administrator adheres to all requirements.
Education Code Section 25100-25115
California Education Code applies to 403(b) products purchased by both certificated and classified employees, regardless of whether they are CalSTRS members or members of another public retirement system. 403bCompare provides information on available investment options, product performance, participant fees, vendor experience, services offered, and educational content to help school employees understand investment product features and retirement planning principles.
Employers are prohibited from processing salary reduction agreements for, or forwarding any funds to unregistered vendors or unregistered products. Also, if the employers uses the services of a third-party administrator for its 403(b) plan, it is the employer’s responsibility to ensure the third-party administrator adheres to all requirements.
Education Code Section 25100-25115
Employers have the ability to sign in to 403bCompare to update and maintain the following information:
- Provide links to the Salary Reduction Agreement form so that employees can print the document. This will reduce the need for employers to provide paper copies to their employees. If the Salary Reduction Agreement form is only available online, then provide the link to the website.
- Add, edit, and remove Employer users who have access to maintain employer information on 403bCompare.
- Designate approved 403(b) vendors from a list of vendors who have registered on 403bCompare. This will allow employees to only view those 403(b) products that are approved by their Employer. Some of the major functions of the site depend on the Employer list of approved vendors being accurate.
- Provide and update the contact name, phone number, and email address of their designated 403(b) plan contact or “employer contact.”
Employers are encouraged to notify the 403bCompare administrator by phone or email if:
- The employer suspects materially inaccurate information has been provided by a vendor.
- The employer is aware that a registered vendor has changed its name, but that registered vendor is not displayed on the site.
- The employer is made aware of a registered vendor that is marketing products that have not yet been registered on the site.
- The employer is made aware that an unregistered vendor is marketing its 403(b) products to employees.
- The employer is made aware of other action in violation of California Education Code Sections 25100-25115 or discrepancies displayed on the site.