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Double Dipping (Fee-Wise)

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The sole administrator of our employer's governmental 457(b) plan recently introduced a new plan. While existing funds may remain in the old plan, new contributions may only go to a menu of mutual or target funds, each having an operating cost. In addition to that, an additional administration fee of 0.69% is added across the board. The only option to avoid this across the board fee is a very low rate fixed account.

 

We understand costs associated with actively managed funds, but the blanket 0.69% administrative fee on top of the operating fees seems very high for the service provided. Is this typical?

 

What options are available to avoid what we believe to be an excessive fee, particularly since this is an employer plan?

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Guest Joel L Frank

The sole administrator of our employer's governmental 457(b) plan recently introduced a new plan. While existing funds may remain in the old plan, new contributions may only go to a menu of mutual or target funds, each having an operating cost. In addition to that, an additional administration fee of 0.69% is added across the board. The only option to avoid this across the board fee is a very low rate fixed account.

 

We understand costs associated with actively managed funds, but the blanket 0.69% administrative fee on top of the operating fees seems very high for the service provided. Is this typical?

 

What options are available to avoid what we believe to be an excessive fee, particularly since this is an employer plan?

 

 

Is this a state, county or local government? How many employees?

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The sole administrator of our employer's governmental 457(b) plan recently introduced a new plan. While existing funds may remain in the old plan, new contributions may only go to a menu of mutual or target funds, each having an operating cost. In addition to that, an additional administration fee of 0.69% is added across the board. The only option to avoid this across the board fee is a very low rate fixed account.

 

We understand costs associated with actively managed funds, but the blanket 0.69% administrative fee on top of the operating fees seems very high for the service provided. Is this typical?

 

What options are available to avoid what we believe to be an excessive fee, particularly since this is an employer plan?

 

 

Is this a state, county or local government? How many employees?

 

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The sole administrator of our employer's governmental 457(b) plan recently introduced a new plan. While existing funds may remain in the old plan, new contributions may only go to a menu of mutual or target funds, each having an operating cost. In addition to that, an additional administration fee of 0.69% is added across the board. The only option to avoid this across the board fee is a very low rate fixed account.

 

We understand costs associated with actively managed funds, but the blanket 0.69% administrative fee on top of the operating fees seems very high for the service provided. Is this typical?

 

What options are available to avoid what we believe to be an excessive fee, particularly since this is an employer plan?

 

 

Is this a state, county or local government? How many employees?

 

 

County government, 1605 employees

 

 

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