Each participant shares the costs of the Plan services. Since the Plan is administered by MSRS, the goal is not one of profit, but about providing choice and a quality voluntary retirement savings plan. Also, as public employees, MSRS employees do not receive any type of commissions or incentives based on enrollment or Plan asset level criteria.
MSRS fully discloses all plan fees on the Investment Option Performance Report (pdf) participants receive at enrollment and with their quarterly statement.
There are two types of plan fees
1. Administrative Fees - 0.10% (or 1⁄10 of 1%)
The annual administrative fee for recordkeeping, communications, counseling, customer service and other services provided is 0.10% (or $1 for every $1,000 balance). The fee is capped at $125 a year - participants do not pay an administrative fee on account assets over $125,000. The administrative fee deducted monthly and is reflected on participant's quarterly statement as a line-item deduction.
Example: If an account balance is $50,000 at the end of the month, the monthly administrative fee would be $4.16 ($50,000 x .0010 ÷ 12 months)
|MNDCP ANNUAL ADMINISTRATIVE FEE HISTORY|
|Year||Admin Fee||Maximum Fee|
2. Operating Expenses - varies by MNDCP investment option (average 0.20% as of 12-31-2020)
Each investment option offered has an investment management fee. These expenses are deducted by the investment option's management company (not by MNDCP) before the daily price per share or calculation of the performance return. These fees pay for investment providers trading and management expenses. Operating expenses for each investment option offered range from 0.00% to 0.67% as of 12-31-2020 and are disclosed on the Investment Option Performance Report (pdf).