Hey, I'm new to the board but love that I can now have access to people with more knowledge than I have on this subject. I am retired from the NYPD where I enjoyed a 457 Plan with very low fees (at least the fees I could find). I have now joined an agency in Florida which I love. They match us for the first 3 % we put into our 457...the only problem is we are using ICMA as our only provider. I have a couple of questions I would love answered if anyone has any information:
1) Can a city have more than one provider?
2) Does anyone have an opinion on ICMA?
3) I have found on the internet that ICMA charges an admin fee of .29 to one plan but to our plan the EXACT same fund charges .70 in admin fee....Now I know it probably has something to do with the amount of assets in our plan (we are a relatively new city) but we are paying 1.20 % for a money market account with ICMA. We are paying 1.01 % for their Index Fund (Vantage Trust) which has underperformed Vanguard etc!! My final complaint with them is that the funds they offer (outside of Fidelity Contrafund) and maybe one or two others are well below Morningstar standards.
I have attempted to broach the subject with the City Manager who stated he would contact ICMA to find out if they could lower the fees. I have also heard of an agency in Florida who gives their employees the choice of either ICMA or Nationwide...I don't understand the fee structure but after emailing ICMA they babbled on something about unitization. Finally, I have spoken to other providers in an attempt to gain information and they have informed me that it all depends on what fees/expenses the city is paying versus what is being passed on to us. Any information or ideas is greatly appreciated and I thank you in advance.....