State-Managed Supplemental Plans & Retirement Behavior

Researchers at North Carolina State University have received a grant to evaluate the impact of the introduction of the state-managed NC 403(b) Plan. This is a three-year research project, which will allow the measurement of plan participation and plan offerings before, during, and after the initial implementation of the NC 403(b) Plan. Researchers aim to examine the effect of the NC 403(b)'s roll-out on participation rates, contribution levels, and average fees across other vendors offering 403(b) plans in North Carolina's school districts. The main goal of this project is to inform public policy related to supplemental retirement plans, both in North Carolina as well as nationally -- particularly for states considering introducing a state-managed plan.

The main objectives of the project include measuring the effect of the state-managed plan's roll-out on:

• Percentage of teachers and school personnel participating in supplemental plans

• Average amounts contributed to supplemental plans

• Administrative and other investment fees associated with supplemental plans.

Independent researchers at the Poole College of Management, NC State University, Professors Robert Clark and Melinda Morrill, are leading this project.

For more details on the state-managed NC 403(b) Plan. visit the NC 403(b) Program information page on the Department of State Treasurer website.