What is a University “grandfathered” provider relationship?
The University has allowed certain employee/provider relationships to continue even though the providers are no longer approved providers for the University’s 403(b) plan. The three “grandfathered” providers/products are: Met Life (formerly CitiStreet products only), Amerprise (formerly American Express) and Vanguard. The University’s policy concerning these relationships has been to allow an employee to make contributions to a grandfathered 403(b) provider for as long as they maintain an active 403(b) account with the grandfathered provider. The University considers a 403(b) account as being active as long as a 403(b) payroll deduction for that account is currently being taken out of the employee’s pay check. Once the 403(b) payroll deduction is discontinued, the 403(b) account is no longer considered an active account and the relationship with the provider is no longer considered grandfathered.
