NJ S3245

School districts offering 403(b) plans must select a minimum of six financial institutions or pension management organizations to provide investment services, ensuring employees have access to both annuity contracts and custodial accounts, plus self-directed investment options

School districts with fewer than 1,000 students may select fewer than six providers but must still offer sufficient investment opportunities including annuity contracts, custodial accounts, and self-directed options

Financial institutions or pension management organizations providing investment services cannot also serve as third-party administrators for the same 403(b) plan

Selected providers must furnish boards of education with electronic data for evaluating plan investments and must disclose all fees, charges, expenses, commissions, and payments to third parties

Selection of 403(b) plan providers and the ability for employees to deposit supplemental compensation for unused sick leave into 403(b) accounts are mandatory subjects of collective bargaining negotiations