I would be remiss if I didn’t comment on yesterday’s announcement involving two of the biggest names in the 403(b) marketplace: Corebridge Financial and Equitable Holdings. The companies announced a proposed $22 billion all-stock merger, which would create a combined financial services company with approximately $1.5 trillion in assets under management, serving more than 12 million customers under the Equitable name.
As someone who spent years working in the 403(b) space before going independent, this is exactly the kind of industry shift that raises real concerns for me, especially for teachers, police officers, firefighters, and other public service employees who are often left navigating a retirement system that has long needed more oversight.
The sales pitch around deals like this is always the same: greater scale, better service, more resources, better solutions. Maybe. But public employees have heard that story before.
The reality is this: the 403(b) marketplace has never operated with the same level of scrutiny and fiduciary pressure that ERISA-governed 401(k) plans face. And because of that, too many school districts and municipalities still rely on outdated annuity-based products, often with high fees, limited investment flexibility, and long surrender periods.
Having “multiple vendors” on a list may sound like choice, but if the choices are poor, that is not real competition. It is simply a bigger menu of bad options.
And unfortunately, the product issue is only part of the problem.
The service model in many of these plans is outdated, too. High-pressure, fear-based sales tactics should have been left behind years ago.
In fact, within hours of this merger news breaking, I was already hearing concerning reports locally. One New Jersey police department was reportedly being told that employees should immediately close their Corebridge accounts and transfer to Equitable because “Corebridge is going out of business” and they would “lose their money.”
That is not education.
That is not advice.
That is fear-based selling.
And it is something I have seen far too many times.
If that is what is happening, employees need to slow down and think carefully before signing anything. Get independent advice.
A corporate merger does not automatically mean you need to move your retirement account. But it does create an environment where sales pressure often ramps up, and that is exactly when people make rushed decisions that can cost them.
In many cases, that can mean:
surrender charges
new commissions
restarting long lock-up periods
ending up in another product that may not actually improve their situation
That is what concerns me most.
Because while companies merge, rebrand, and restructure, the employee is often left holding the bag, trying to figure out what is true, what is salesmanship, and what is actually in their best interest.
Unfortunately, many employees will not receive clear guidance from HR or payroll, creating even more room for confusion, misinformation, and sales pressure.
If you are a teacher, police officer, firefighter, or public employee with a 403(b), 457, TSA, or annuity-based retirement account, now is a very good time to review what you own before making any changes out of fear.
Big companies will do what big companies do.
But your retirement plan should not become collateral damage.
If you are being told to move your account because of this merger, slow down before signing anything. You deserve to understand what you own, what it costs, and whether a transfer actually benefits you, or just benefits the person selling it. If you would like an independent review of your retirement account, I’m here to help.