–Kossuth County employees who participate in a stand-alone 457 B retirement plan will soon have the chance to join a statewide program that offers lower administrative fees. Shawn Monahan with Corebridge Financial addressed the Board of Supervisors during their meeting on Tuesday.
Corebridge is currently the provider for the county’s stand-alone 457 B plan, one that has been available since 2002. Monahan says counties across Iowa are being given the opportunity to join a state managed plan that has drastically lower costs.
To illustrate the difference in fees, Monahan gave the example of an employee with a $50,000 balance in their retirement fund.
Monahan says the size of the statewide plan and how it is managed makes it possible to offer such a difference in administrative fees.
Employees who participate in the county’s stand-alone plan will have the opportunity to join the statewide plan in the coming months. A 457 B retirement plan is offered by state and local governments, as well as some tax-exempt organizations, and are generally not subject to the Employee Retirement Income Security Act. While similar to 401K, 457 B plans allow for penalty-free withdrawals after you leave your job regardless of age.
