My argument isn't so much that they do not offer an appropriate fund as much that they would not allow the transfer of funds to traditional IRA. They sent her a form that indicated that the only two scenarios that she could get her money out of CGM was that she reached 59-1/2 or was terminated from her district. That is a specific requirement of the current District plan administrator. However CGM decided not to become an approved services provider to this 403B plan and exited more than a decade ago. Way before these requirements were added to the plan. We were allowed to keep funds in the funds at the time of separation but could not deposit any new funds to CGM through payroll deductions. We had at least one other mutual fund provider that also separated from the district but they honored a request to transfer the funds to a traditional IRA which was at TD Ameritrade at the time. Both the 403B and the IRA tax deferred accounts so there is no IRS reason that the transfer could not be honored.
Seems Like CGM did not want to remain a services provider to the the 403B Plan due to onerous paperwork and filing requirements, but yet they are still claiming the current plan administrator separation/Transfer clauses as a reason they could not honor the request to transfer the funds to Schwab. Is it appropriate for them now to utilize the current plan transfer provision restrictions to deny the holder the ability to roll into a traditional IRA when they decided they did not want to remain a vendor to the plan and dropped it before those provisions existed? That is the primary area of disagreement.
I'm actually thinking of suing CGM. After the August 2015 collapse I convinced my wife we should get her 403B out of Focus and Realty. At the end of Sept she contacted them to roll it into a traditional IRA at Schwab and was told this was not possible. She asked if they could move her money into a money market or balanced fund that might be more risk appropriate for someone a couple of years from retirement and was told that the Fund manager did not want to offer such funds because he thought it would encourage market timing and he did not want to deal with funds sloshing between funds.
They have to realize that people have other reasons for wanting to mitigate risks other than market timing. Looking for an attorney!