Anniversary marks one of the earliest implementations of a 403(b) retirement plan in a public school
Corebridge Financial and Miami-Dade County Public Schools are commemorating one of the earliest implementations of a 403(b) retirement plan in a public school, dating back to 1964. The Variable Annuity Life Insurance Company (VALIC), a Corebridge Financial company, issued a 403(b) plan sixty years ago this month to a teacher at Coral Gables Elementary who enrolled at $25 per pay period, helping to pioneer 403(b) employer contracts for educators in the United States.
“Those who dedicate their lives to educating and caring for our nation’s children in K–12 schools deserve a rewarding retirement, and 403(b) savings plans can play an important role in funding those retirement dreams,” said Terri Fiedler, President of Retirement Services at Corebridge Financial. “It’s an honor to celebrate 60years of providing retirement security to teachers, school administrators and staff, alongside our long-standing partner Miami-Dade County Public Schools, who we still proudly work with today.”
In 1958, Section 403(b) was added to the Internal Revenue Code (IRC) making a tax-deferred savings vehicle available to employees of certain 501(c)(3) tax-exempt non-profit organizations. In 1961, IRC 403(b) was extended to employees of public education institutions, including colleges and universities.1 Today, it is estimated that 403(b) plans hold roughly $1.3 trillion in retirement assets, helping employees of public educational institutions, non-profits, hospitals and religious organizations save on a pre-tax basis through salary deduction.2
Frank Buggs, a retired educator from Miami-Dade County Public Schools and Corebridge 403(b) account holder of 55 years, recently shared his thoughts on retirement and his relationship with Corebridge in this interview.
“At Miami-Dade County Public Schools we strive to provide our staff with comprehensive benefits throughout their working years and beyond,” said Ron Steiger, Chief Financial Officer at Miami-Dade County Public Schools. “As an early adopter of 403(b) plans in public schools, we’ve seen the difference that these accounts can make in helping our colleagues accumulate assets to enjoy a fulfilling retirement, and we’re proud to continue offering them with one of our partners, Corebridge Financial.”
Corebridge is a top 5 retirement plan provider by assets for K–12 schools, higher education, healthcare, government employers and other non-profit institutions.3 As of June 30, 2024, the Corebridge retirement services business has more than $124 billion in total customer assets under management and administration. Corebridge supports plan participants leading up to and through retirement with more than 1,000 employee financial advisors offering a range of services from enrollment support and account management to financial planning.
About Corebridge Financial
Corebridge Financial, Inc. (NYSE: CRBG) makes it possible for more people to take action in their financial lives. With more than $390 billion in assets under management and administration as of June 30, 2024, Corebridge Financial is one of the largest providers of retirement solutions and insurance products in the United States. We proudly partner with financial professionals and institutions to help individuals plan, save for and achieve secure financial futures. For more information, visit corebridgefinancial.com and follow us onLinkedIn, YouTube and Instagram.
VALIC (Houston, TX) is a wholly owned subsidiary of Corebridge Financial, Inc.
- IRS, Section 403(b) Tax Sheltered Annuity Arrangements by Ron Hallesten and Bob Architect
- Investment Company Institute, Quarterly Retirement Market Data, Sept. 19, 2024
- LIMRA rankings in the U.S. as of June 30, 2024
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