L.A. Unified Recognized for the 457(b) Deferred Compensation Plan

LOS ANGELES (Oct. 21, 2014) – The Los Angeles Unified School District (LAUSD) received the 2014 Leadership Award for its excellence and innovation in designing the 457(b) deferred compensation retirement plan.

The National Association of Government Defined Contribution Administrators, Inc. (NAGDCA) honored L.A. Unified for its 457(b) retirement plan, which allows employees to put away tax-deferred income for retirement. NAGDCA is a professional organization made up of the deferred compensation/defined contribution plan administrators from the 50 states and more than 100 local governments and entities, as well as the private industry plan providers.

LAUSD is celebrating National Save for Retirement Week, Oct.19-25, 2014 as designated by the U.S. Senate to raise awareness about saving for retirement. In addition, L.A. Unified hopes to increase financial literacy; make employees aware of saving for their future; promote the benefits of actively saving for retirement; and encourage employees to start and/or increase their contributions by taking advantage of the employer-sponsored plans. Board President Dr. Richard Vladovic and Board Member Bennett Kayser co-sponsored a resolution approved last week by their fellow board members recognizing “National Save for Retirement Week.”

“Through the Deferred Compensation Plan, many of our valued employees are able to enjoy their retirement years,” Dr. Vladovic said. “I salute all those who have worked so hard to make the plan a great success.”

“I want to applaud our employees, district staff, and the Retirement Investment Advisory Committee for committing to our award-winning plan,” Kayser said. “As a district, we have empowered our employees to enjoy their hard-earned dollars through this fantastic 457(b) plan.”

The 457(b) plan is overseen by the L.A. Unified Retirement Investment Advisory Committee, which is comprised of District staff, labor partners and administrators.

The Committee’s aggressive plan design management has led to a 65.6 percent reduction in actual mutual fund fees paid by employees. The savings amounted to $176,000 annually, based on the mutual fund’s current value of $46 million.

“All of the credit needs to go to the hardworking, dedicated group of volunteers on the District’s Retirement Investment Advisory Committee who have for years passionately advised and guided the District’s plan design,” said LAUSD Chief Financial Officer
Megan Reilly.

The District’s 457(b) plan provides an excellent opportunity for all employees to save for retirement.

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Contact: Ellen Morgan (213) 241-6766