403(b) & Roth 403(b) Supplemental Retirement Plans Fee Disclosure
In September 2018, the LSU 403(b) Supplemental Retirement Plan modified its investment options, transitioning to a simplified fund lineup with lower Recordkeeping and Investment costs through TIAA, Corebridge (Corebridge), and Fidelity. As of September 2018, MetLife and Voya are no longer available vendors in the LSU 403(b) Supplemental Retirement Plan for future contributions.
Recording Keeping Fees & Investment Management Costs
The following are the current administrative fees and average investment management costs:
| Type of Cost | TIAA | Corebridge | Fidelity |
|---|---|---|---|
| Administrative Fee %1 | 0.075% | 0.08% | 0.10% |
| Average Investment Cost %2 | 0.16% | 0.16% | 0.16% |
| Combined Cost % | 0.235% | 0.24% | 0.26% |
Average total cost % prior to September 2018 = 0.93%
1This administrative fee now appears as a separate line item on your statement, but represents a lower fee than before the 9/5/18 transition
2Unweighted average, per annum
Not included and in addition to the above: Arthur J. Gallagher (LSU’s Named Fiduciary to the Plan) receives a fixed fee in addition to the above expenses. This fee equates to approximately an additional 0.02 - 0.04% per annum of Plan assets and will reduce as a percentage over time as the Plan assets increase. This fee is assessed pro rata to the plan on a quarterly basis and will be reflected as a separate line item on your statement.
What does this cost savings mean to you?
Administrative fees are charged by each firm so that they can provide investment record keeping, online access & trading, quarterly statements, and education services to participants.
Investment fees (expense ratios) reflect the operating and management expenses of each investment option. Investment fees are deducted from an investment option’s gross assets and are reflected in the net asset value, thus reducing the investment return of the fund by the same amount. Fees can vary among investment options depending on investment strategy and management style.
Savings example:
An employee contributes $500 per month for 30 years ($180,000 total)
| Average Annual Return | Total Annual Fees | Account Value After 30 Years3 | Amount Paid in Fees3 | Fee Savings |
|---|---|---|---|---|
| 6% | 0.93%1 | $411,528 | $78,601 | $0 |
| 6% | 0.26%2 | $466,493 | $23,636 | $54,965 |
1Unweighted average, per annum
2Unweighted average, per annum, including Named Fiduciary services
How do you transfer your balance to another vendor?
- Contact your new vendor and your current vendor and complete their contract exchange form
- Go to MyRetirementManager.com and complete an In-Service Exchange certificate
- Submit the In-Service Exchange certificate and both vendor’s contract exchange form to your new vendor
Resources Available
Fidelity: 800-343-0860
TIAA: 800-842-2252
Corebridge: 800-448-2542