biz.yahoo.com/cbsm/070520/180dcb44a80b49bfab0398039f64b -
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Published on: 5/20/2007
Last Visited: 5/20/2007
With many plans currently, "if I'm a 403(b) employee, I'm calling all the shots," said Linda Segal Blinn, a Hartford, Conn.-based vice president of technical services at ING, the financial-services company in Atlanta.
With many 403(b) plans, particularly at the K-12 educational level and at smaller nonprofit organizations, employees manage the plan, not the employer.The employee works directly with financial-services companies -- often meeting face-to-face with sales representatives -- to invest in fixed or variable annuities and mutual funds.
But under proposed IRS rules expected to go into effect in January, "there is really going to be a paradigm shift," Blinn said.
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"For employees who are used to doing all the decision-making on their own, it's going to be a culture shock," Blinn said.Overall, about 11 million workers are invested in 403(b)s, according to Cerulli Associates.