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Provider Exchanges

 

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.

Imag of dollars bills moving from one stack to anotherRequest a provider exchange
Why consider an exchange?
Compare providers
Review exchange options for inactive provider products
Check for restrictions or fees
Policy Review Data Sheet
PDF

 

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Education-Related Employees

 

 

The status of a provider's relationship with planwithease (pwe) and RIC determines if and how an exchange may be made (see chart below).

Additionally, your employer's plan elections may indicate exchange restrictions. 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 PDF 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.

    FROM
  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

 

 

 

Consider an Exchange (from an inactive provider)

You may find one or a number of reasons to consider investing with a different provider. Some providers do not always agree to give their investors the same products and services that are offered by RIC providers. You may decide to make an exchange if…

  • your investment choices are limited by your current provider
  • 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

 

Compare Providers

First, review the following list of product benefits offered by RIC’s 403b providers. RIC providers have competitive products and services that typically 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 (annually for fixed accounts)
  • Reasonable fees and no sales loads (some exceptions) for mutual funds. Even a 1% difference can make a big difference over the long term of your investment.
  • Competitive fixed-rate investments
  • Local investment representatives (some exceptions)
  • Customer support - 24-hour toll-free phone and internet access to your account information (some exceptions)
  • Ability to change your investment selection at any time (some exceptions)
  • No surrender fees or product restrictions for transfers and distributions (some exceptions)
  • No annual contract fees (some exceptions)
  • Access to self-directed brokerage account (not offered by all providers)

Second, review your annuity policy or call your inactive provider and request information listed on the Policy Review Data Sheet PDF. 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 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 investment providers. RIC's Investment Provider Interview PDF gives sample questions to ask providers.

 

Exchange Options for Inactive Provider Products

Assets in inactive provider accounts may be moved to an active provider account at anytime. Instructions for completing an exchange are available here

Inactive provider assets may move to another inactive provider account ONLY if:

Depending on the provisions of your inactive policy, your options to exchange assets to another RIC provider are most likely the following two ways:

  • exchange 100% of your policy value (surrender charges may apply)
  • set up an automatic annual exchange of the penalty-free amount (typically 10% of contract value) until the total balance is exchanged without penalty (some inactive policies may not have this option)

 

Possible Exchange Restrictions or Fees

Some of the active providers have no restrictions or fees for exchanges to other active provider accounts.

Providers may have surrender charges that limit your ability to exchange part or all of your assets without a penalty PLUS your employer's plan elections might not include this type of exchange.

A surrender charge is typically imposed for a set period (5, 10, 15 yrs, etc.) and decreases over the surrender period from the original date of your policy or from the date of each contribution. Check with your provider for possible penalties and the possible 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.

Instructions for completing an exchange are available here.