This post addresses the availability of participant-directed investments in practically all California public school district 403(b)s and why the special rules mentioned in California Government Code section 53213.5 must apply if the 403(b) plan is employer-sponsored.
In an earlier post, we discussed the difference between “non-employer-sponsored 403(b) arrangements” (NFAs) and “employer-sponsored 403(b) plans” (EFPs). In a typical EFP, the sponsoring school district is taking control of the plan by designing it, administering it (often with the help of a third party administrator or recordkeeper) and accepting fiduciary responsibility for the investments.