Choosing a Retirement Investors’ Club (RIC) Provider

Choosing a Retirement Investors’ Club (RIC) Provider
November 2018 

The RIC is the State of Iowa’s voluntary retirement savings program designed to supplement your Social Security and pension plan benefits. Participants in the RIC have two accounts: a 457 account, which receives automatic payroll deductions; and a 401a account, which receives employer-match contributions up to $75 a month for a total of $900 per year.

Contributions into your 457 account can be handled in two different ways. Roth contributions are taxed at the time they are deducted from your paycheck. This allows you to pay taxes on plan contributions upfront and not be taxed on future earnings. Non-Roth contributions are tax-deferred, meaning you aren’t taxed at the time you make your contributions, but you will pay taxes when you withdraw funds from the account. 

Learn more about our employer-sponsored RIC benefits on the DAS/RIC website.

State employees who enroll in the Retirement Investors’ Club may choose to work with any of the four RIC investment providers - Horace Mann, MassMutual, VALIC, and Voya. 

How are the four RIC providers the same?

  • All providers have a fixed interest rate account (no fee), a variety of diversified mutual funds, and a self-directed brokerage account.
  • All investment options are free of sales charges and sales loads, with no restrictions or penalties for transfers and eligible distributions. There are no custodial or annual contract fees.
  • All providers offer 24/7 online account access, advisor services (no additional cost), customer service, investment education, and quarterly account statements.
  • All providers must meet requirements of the public competitive bid, the RIC Investment Policy Statement, and IRS reporting.
  • All investment options must undergo annual investment reviews and meet required standards.

How are RIC providers different? 

  • Website tools and interface.  
  • Local advisor services.
  • Retirement planning services and software.

You may utilize the Investment Provider Interview for sample questions to ask when making decisions on which provider to choose. 

No matter which provider you choose, participants may change their provider and investment options at any time without penalties, fees, or restrictions.

For enrollment options, visit the RIC website at https://das.iowa.gov/RIC/SOI. You may also contact a RIC team member at christi.patterson@iowa.gov, 515-281-8677, or toll-free at 866-460-4692.

11/02/2018