Friday, October 24, 2014

George Hartzman, presented to Guilford County's School Board, 10/23/2014

"I teach financial ethics.  In 2012, I became a whistleblower against Wells Fargo, after participating in profit skimming via limited transparency that provided little to no value to investors paying the fees, like Guilford County School employees invested in North Carolina's 457 and 401(k) retirement plans.

In the fall of 2013, I looked at Greensboro's 457 retirement plan to see if the City's employees were being overcharged for administration and investment management, and I found the City's 2,781 participants  pay about 57% more than they should.

I wrote about it in April for Yes Weekly.

The cost for each Greensboro participant could be about $114 per year, instead of more than twice what they pay now.

North Carolina's 266,000 401(k) and 457 plan participants, which includes Guilford County School employees, pay about $164 each on $8.8 billion dollars.

In 2013, North Carolina replaced the Mid Cap index fund with  managers that cost about five times more.  They replaced the International Index Fund with managers that charge more than three times more.

North Carolina's employees should be paying less than $100 per year, or a difference of 40% to save about $17 million per year, which would go into Guilford County School employee pockets.

Lowering costs employees pay in these plans can create higher levels of economic impact after retirement, as more money would be  available to be spent locally.

Let's get it for them.

As fiduciaries for Guilford County School employees, please forward the inquiries emailed to the School Board today on North Carolina's 401(k) and 457 plans to the North Carolina Treasurer's office.  It could mean tens of thousands per teacher."