Sydney Wilmer
Members on a special committee explained to Loudoun County School Board members why they unanimously decided to narrow 403(b) investor options from 19 to one Thursday night at the Board's monthly meeting.
By Sydney Wilmer
Originally published at 12:00 a.m., June 25, 2008
Updated at 2:49 p.m., June 25, 2008
Tuesday night, the Loudoun County School Board dispelled rumors about the closing of Middleburg Elementary School and heard suggestions about the naming of a new high school. Also, district employees will no longer have a choice for where they invest portions of their salaries for retirement under a plan approved by the board during Tuesday's meeting.
After a heated debate that lasted more than an hour, Loudoun County School Board members came to a decision Tuesday evening on whether to take the number of retirement 403(b) plan vendors from 19 to one. Despite the intense debate, the vote passed easily five to three, with one member, Priscilla Godfrey (Blue Ridge), not in attendance.
The education-specific retirement plan, similar to a 401(k), allows employees to invest in annuities and mutual funds before taxes to prepare for retirement. Today, only about 25 percent of Loudoun County Public School employees participate.
Previously, the 403(b) was not a significant source of controversy, explained members of a special committee. However, in 2007, new IRS codes mandated employers offer guidance to employees in areas of financial planning.
And Thursday night, it was at the top of the agenda, and so was a concern over narrowed options.
Current participants would have to switch from "trusted investors," member J. Warren Geurin (Sterling) said, leaving many feeling "punished" for their responsible efforts.
Sydney Wilmer
Members on a special committee explained to Loudoun County School Board members why they unanimously decided to narrow 403(b) investor options from 19 to one Thursday night at the Board's monthly meeting.
In voting though, members of the board took solace in the fact that the committee, made up of teachers, employees and administrators, settled on their recommendation unanimously.
"A phrase that stuck with me was 'analysis paralysis,' " said Loudoun Valley High School Plant Engineer and committee member, Ralph Tillman. "It means that many employees, when faced with too many vendor choices they do nothing," referring to the18 vendors employees currently have to choose from. Tillman said he offered his recommendation with enthusiasm.
Nevertheless, some employees said they valued their freedom to choose their own investor. "This is a serious issue and one that the board should consider carefully," said retired teacher and resident Birtha Tiffany, who said she had mixed feelings about the outcome of the vote.
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During the latter portion of the meeting, the board passed a measure forbidding smoking on any Loudoun County Public School property, including administrative properties. Though some members said they had qualms with telling adults -- particularly administrators -- how to behave outside of work, the measure passed easily.
Board member John Stevens (Potomac) also stressed that rumors about Middleburg Elementary School closing are not true. Earlier in the evening, the board heard about four speakers' pleas to leave it open and running.
"Folks who are concerned about a closing there are misinformed -- we need everything we can [in terms of school facilities]," he said.
The next board meeting will be held August 12.
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