FBC Deferred Compensation

Who's Involved?

• San Diego County Office of Education, Riverside County, and Imperial County Office of Education
  The San Diego County Office of Education sponsors the FBC.  The FBC offices are located within the County Office of Education.
   
• Fringe Benefits Consortium (FBC)
  The County Schools Fringe Benefits Consortium (FBC) was formed in 1982 to provide medical benefits to San Diego area school districts as a non-profit government entity.  At that time, 12 school districts covering approximately 2,500 employees joined together to self-insure their health plans.  Since 1982, 15 new programs have been added and the Consortium has grown to 77 San Diego, Imperial, and Riverside County school districts covering over 80,000 employees.  In 2001 the 403(b)/457(b) Deferred Compensation Program was created and offered to participating school districts to provide a high quality, low cost retirement savings alternative.
  
  The purpose of the FBC is to provide the best benefits at the lowest possible cost.  This savings comes from the joint purchase of benefits made possible by the joining together of school districts.  Further savings are possible through self-insuring some benefit programs and utilizing FBC staff for all consulting/brokerage services. The FBC programs have saved school districts and their employees hundreds of thousands of dollars over the years. Visit The County Schools Fringe Benefits Consortium's web page now.
   
• Empower Retirement
  Trusted by more than 9.4 million individuals* and nearly 40,000 organizations** to administer $686.5B*** in assets.  
  After a comprehensive selection process, Empower Retirement was chosen by the FBC Deferred Compensation Program to provide administrative, education and communication services. In conjunction with your FBC plan, Empower is committed to helping you understand and evaluate your financial situation by providing you with the information you need to make the financial decisions that are right for you, so you can enjoy your never-ending summer after the last bell rings on your career.
  Each district and charter has an assigned representative that will help school employees enroll into the plan and choose an asset allocation that works best for them.

* As of December 31, 2019.
** As of December 31, 2019. Individuals and organizations refers to all retirement business of Great-West Life & Annuity Insurance Company and its subsidiaries and affiliates, including Great-West Life & Annuity Insurance Company of New York marketed under the Empower Retirement brand.
*** As of December 31, 2019. Information refers to the business of Great-West Life & Annuity Insurance Company and its subsidiaries, including Great-West Life & Annuity Insurance Company of New York. Of the total $686.5B assets under administration, $19.6B represents the AUA of GWL&A of NY. AUA do not reflect the financial stability or strength of a company. GWL&A assets total $48.8B and liabilities total $47.3B. GWL&A of NY assets total $1.6B and liabilities total $1.5B. 

History of the Fringe Benefit Consortium Deferred Compensation Plan

Historically, 403(b) plans available to school employees have been less than adequate.  They have high fees, penalties for leaving early, and almost always charge a commission.  School employees have lost millions of dollars because of high fees over the years contributing to high cost retail 403(b) plans. 

In 2001 the San Diego County Office of Education decided to do something about this problem.  Through their non-profit subsidiary the Fringe Benefit Consortium they set out to create an institutional retirement plan.  Basically they wanted to create a plan that would benefit school employees, not the financial services industry.  The purpose was simple, use the accumulated buying power of several districts to negotiate price discounts and other concessions from financial service providers and pass those savings onto the school employees. Districts from Riverside and Imperial County soon asked to participate in the FBC so they could benefit from the savings as well.

The result is a retirement plan that is low in cost, free of surrender penalties, and because the plan is operated on a non-profit basis, the fees will only get lower as the plan grows bigger. 

The FBC Deferred Compensation Program offers retirement plans for district and charter school employees to put aside money from each paycheck toward retirement. These plans can help bridge the gap between what you will receive in your pension or Social Security, and how much you’ll need in retirement. The available plans include:

• 457(b) – Tax-deferred savings, available to all employees of member charters and districts. Participants select amount deducted from each paycheck up to the maximum amount allowed by the IRS (make this a hyper link to the 2020 IRS max contribution limits), and the amount contributed can be changed throughout the year. Contributions are made with pre-tax dollars and any earnings grow tax-deferred. Ordinary income taxes will be paid when the funds are withdrawn.
  457(b) Plan Summary 


• 403(b) – Tax-deferred savings, plus investment options, available to all FBC employees of member charters and districts. Participants select amount deducted from each paycheck up to the maximum amount allowed by the IRS (make this a hyper link to the 2020 IRS max contribution limits), and the amount contributed can be changed throughout the year. Contributions are made with pre-tax dollars and any earnings grow tax-deferred. Ordinary income taxes will be paid when the funds are withdrawn.


• 403(b) Plan Summary 

Participating in the FBC Deferred Compensation Program is easy!

1. Select the plan that’s right for you – based on your goals and investment tolerance. Use the Retirement Planner to see how much you will need to retire comfortably. Pre-tax or Roth? Here's a planner to help you decide.
    
2. Enroll in your plan – Monthly contributions are deducted from your paycheck and deposited to your account.
   • Invest your money* – If you select the 403b, choose funds from the list of investment options available from the approved Master Vendor List. Keep in mind, any investment involves risk and its important to speak with a retirement advisor to help achieve your goals.
      
3. Review your investments – your needs will change as your family and income changes over time. Be sure to review your statements and log into your account periodically to stay informed and make changes to suit your needs. Your retirement plan advisors are available to help you at any step of the way!

1. Why shouldn’t you? Deferred Compensation is a BENEFIT offered to you that lets you control when, where, and how much you invest toward your future. What other benefit gives you that much control? Whether you’re just getting started or approaching retirement, putting money in a tax-deferred account offers several benefits.
2. Every bit helps! Start with any amount, just start. You can increase or decrease as needed. Consider adding a portion of your raise or step-increases as they come. Remember, a little now, can go a long way later! If you’ve been investing, use the tools provided or speak to a retirement planner to look at your options.
3. This plan was made for you! The FBC Deferred Compensation Program was created for the education community. A partnership between San Diego, Riverside, and Imperial County Offices of Education, to benefit school employees, not the financial services industry. The result is a retirement plan that is low in cost, free of surrender charges. Because the plan is operated on a non-profit basis, the fees will only get lower as the plan grows bigger.
4. Reliable, experienced service. New to navigating your retirement? You’ll get the help you need. Working with public sector employees for more than ten years, our salaried retirement plan advisors are working to ensure YOU make the most of YOUR retirement savings.

Learn More About Investing In Your Retirement

It only takes a few minutes to start saving for your future! Here are some things that will make it easier to get started:

• Your social security number
• Your annual income
• Your contribution amount
• The name of your school district
• Beneficiary names (and social security numbers if possible)

457(b) – Empower Enrollment Form
403(b) – Empower Enrollment Form