HHC TDA Bum Rap

To the Editor:

Joel Frank's recent column (Nov. 24 issue) about changes to the NYC Health and Hospitals Corporation's (HHC) 403(b) Tax Deferred Annuity (TDA) Plan contains inaccurate and incomplete comments and paints a misleading impression of the plan's administration and investment products.

HHC fully recognizes the substantial responsibility inherent in the oversight of the TDA Plan. In recognition of this responsibility, HHC engages the services of independent, nationally respected professionals who provide guidance and assistance with all investment and compliance issues. With the help of these professionals and the efforts of our officers, HHC has created a high-quality, cost-efficient savings vehicle that provides maximum flexibility and service to its participants.

The number of investment options in the TDA Plan is in fact 16, not the much larger number noted in the column. Additionally and most critical, the TDA Plan and the citywide 457(b) and 401(k) Deferred Compensation Plans (DCP) are complementary, not competing programs. The TDA Plan offers its participants a wider array of investment options, with a focus on funds that have actively managed portfolios.

HHC is extremely proud of its TDA Plan and its ability to offer such a broad array of excellent retirement savings vehicles to participants. Since one plan cannot possibly fit the diverse needs of all employees, every HHC employee has the ability to participate in one or all the plans - the HHC TDA Plan, DCP 457(b) and the DCP 401(k).

HHC is committed to providing current and accurate information directly to all participants as we continue to enhance investments and services that benefit our employees.

FRANK J. CIRILLO, Senior Vice President, Operations, Chief Operating Officer, NYC Health and Hospitals Corporation