our difference is your advantage the brave new world of ...sep 02, 2009 · for over 65 years...
TRANSCRIPT
Our difference is your advantageTHE BRAVE NEW WORLD OF RETIREMENT BENEFITS
Presented by:
Richard W. RausserVice PresidentPentegra Retirement Services
Understanding Plan Fees and Expenses
UNDERSTANDING RETIREMENT PLAN FEES
Fee transparency
Fee disclosure
Upcoming Department of Labor (DOL) guidelines
UNDERSTANDING RETIREMENT PLAN FEES
Who bears the cost of plan fees?
Plan sponsor
Participant
Both
How are fees paid?
Annual “asset-based” fees
Annual “per participant" fees
WHAT ARE THE TYPES OF PLAN FEES?
Plan administration feesParticipant education meetingsConsulting servicesLegal services
WHAT ARE THE TYPES OF PLAN FEES?
Investment fees/sales chargesCommissions12b-1 feesBrokerage account feesInvestment fund loads (front end, back end, contingent deferred sales charges (CDSC)Wrap fees
WHAT ARE THE TYPES OF PLAN FEES?
Management feesInvestment advisoryAccount management
Mutual fund fees
WHAT ARE THE TYPES OF PLAN FEES?
Variable annuitiesInsurance related chargesSurrender and transfer charges
Guaranteed Investment Contracts (“GIC”)Investment management feesAdministrative fees
WHAT ARE THE TYPES OF PLAN FEES?
Individual service fees LoansDistributionsInvestment transactions
OTHER POTENTIAL FEES
Recordkeeping feesAnnuity contract administration fee Daily valuation of account balancesDistribution processing fee Loan origination fee Loan tracking fee Participant statement feeBalance inquiry feePayroll processing fee Trust-to-Trust investment transfer fees
OTHER POTENTIAL FEES
Plan compliance and testing servicesNondiscrimination testing
Annual tax reportingIRS Form 5500 preparation1099 tax reporting for distributions
Annual plan audit
Plan document/amendment feesMandatory plan amendment Fees Plan document determination letter fee
Plan transfer fees
UNDERSTANDING PLAN FEES
One of the more critical fiduciary duties is to completely understand plan fees and expenses
Make informed investment decisionsConsider fees as one of several factors in your decision making Compare all services received with the total cost
EVALUATING PLAN FEES AND EXPENSES
Establish an objective process to aid your decision making
Take into consideration the level of services that you would like from your service provider
Also consider the level of responsibility and customized services that you want your service provider to assume
ABOUT PENTEGRA RETIREMENT SERVICES
Established as an independent, not-for-profit cooperative in 1943 by the Federal Home Loan Bank System
For over 65 years Pentegra has specialized in meeting the retirement plan needs of financial institutions
Pentegra offers full service retirement programs, including Defined Benefit Pension plans, 401(k) plans, Profit Sharing plans 457(b) and 457(f) plans and Executive Benefit and Director programs
A NAFCU Preferred Partner for qualified retirement plans
www.nafcu.org/pentegra
ABOUT THE SPEAKER
Richard W. Rausser, CPC, Vice President, Pentegra Retirement [email protected]
Rich is responsible for managing Pentegra's retirement plan Consulting Practice Group. Pentegra’s Consultants serve as the primary point of contact for the firm’s retirement programs and they consult with clients nationwide on plan design, compensation, technical and regulatory issues. Rich joined the organization in 1997 and has more than 25 years of experience in the retirement benefits field, which includes a unique mix of small company and Fortune 500 level consulting work. He is a frequent speaker on retirement benefit topics.
Rich is a Certified Pension Consultant (CPC), a Qualified Pension Administrator (QPA), a Qualified 401(k) Administrator (QKA) and a member of the American Society of Pension Professionals and Actuaries (ASPPA). He holds an M.B.A. in Finance from Fairleigh Dickinson University and a B.A. in Economics and Business Administration from Ursinus College.