Tax-Deferred Annuity Program

By one estimate, less than half of small employers in the United States—including many small foundations—provide retirement plans for their employees; even medium and larger foundations often find that they employ too few people to qualify for the best employee retirement annuities, pensions, and similar plans.

In an effort to address this problem, Philanthropy New York has worked with a large group of our member foundations over many years to create and constantly refine an enhanced 403(b) Tax-Deferred Annuity Retirement Program as a membership benefit. Any qualified employee at a member foundation can participate in this program, which Philanthropy New York has offered for almost a decade.

In 2009, Philanthropy New York's Board of Directors approved a new pension plan provider, American Funds. The plan was chosen based on its past performance and pricing, and is available for purchase by individuals at any Philanthropy New York member organization.

Our consultant, Thesco Benefits, LLC, coordinates the administrative and investment services offered by American Funds, and provides members with education and plan design concepts.

Philanthropy New York's 403(b) program has three parts:

• education for plan participants, provided through the annual meeting with the provider at Philanthropy New York;
• on-site consultation offered by Thesco Retirement Planning Services to the staffs of member foundations to inform them of the importance of retirement plans and help individual staff members design and implement their own plan; and
• a specially negotiated 403(b) funding arrangement, with portability features, underwritten by American Funds.

For more information on the American Funds plan, please contact the plan's broker, John Cunningham of Thesco Retirement Planning Services at cunninghamj@thesco.com or 212-603-0284.

Important note: Participants who joined the TDA program prior to 2009 have the option to stay with Diversified Investment Advisors through Cammack LaRhette Consulting.