Mission Statement: The STARS program seeks to provide fee-transparent and competitively priced defined contribution plans for public agency employees to benefit from the flexible and tax advantaged sections of IRS code 401(a) and 457(b). The investments are monitored qualitatively and quantitatively with a formal investment policy statement. It is also the goal of the program to provide enhanced fiduciary protection to plan sponsors by engaging the services of a discretionary trustee.
The California Public Agencies Self-Directed Tax-Advantaged Retirement System (STARS) are two trusts formed in September of 2009 by California public agencies for the exclusive use of local government agencies for their employees. The trusts were formed by agencies signing the original formation documents for the 401a and 457b plans. The trusts are administered by a Board of local government representatives.
Agencies can participate in the STARS program either as ‘Member‘ agencies or as ‘Associate’ agencies which elect not to engage in the governance of the Plans. Joinder agreements for the 401a and 457b plans are for each agency to specify the exact terms of its plan.
The Board selected two business partners who are committed to helping participants achieve their retirement objectives and transparency.