When it comes to 403(b) plans of California school districts or charter schools, there is confusion about the ability of the sponsoring district or charter school to limit the participant’s ability to select a particular insurance provider for their tax-sheltered annuity (TSA). On the one hand, there is a provision of the California Insurance Code which provides that if a TSA “is to be placed or purchased for an employee, the employee shall have the right to pick the insurance agent, broker or company through whom… the… annuity [will be placed].” On the other hand, you have employers and plan fiduciaries who are trying to provide more competitive benefits, while controlling fiduciary liability and plan administrative burden. The bottom line is that many public school district and charter school employees in California mistakenly believe that they are entitled to select the TSA provider of their choice simply because they are allowed to direct the investment of their plan account.