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Edward Jones reviews Tipton utility’s retirement plan; presenter cites ~90% participation, $2.7M in assets and 0.81% total fees
Summary
An Edward Jones representative told the Tipton Utility Service Board the utility’s 457 plan has about 90% participation, roughly $2.7 million in assets, strong one-year returns and total plan costs of about 0.81% annually; the presenter also said the firm is considering moving distribution services to a local TPA.
An Edward Jones representative reviewed the Tipton utility’s retirement plan at the Dec. 1 board meeting, saying the plan has high participation, roughly $2.7 million in assets and competitive fees.
Speaker 4, introduced by the presiding board member, told the board, "We are currently right at about 90% participation rate with utilities voice," and summarized plan metrics and participant behavior. He said the plan "has just a shade over 2,700,000.0 in it," which the board discussion and packet materials show as about $2.7 million in assets. He also cited strong recent returns, saying the one-year rate of return for participants was approaching 14%.
The presenter described the plan’s structure and recent changes: Roth deferrals are available and in use, while employer match contributions remain pre-tax. He explained participants cannot take loans from the plan but may request hardship withdrawals for issues such as bankruptcy, medical debt, unemployment or foreclosure. Speaker 4 said participant counts are small: 31 total participants with 28 active contributors.
On fees, Speaker 4 said the plan’s total cost is about 0.81% (81 basis points) per year. He broke that down roughly into underlying fund costs, John Hancock administration services (about 23 basis points) and third-party services (about 47 basis points), noting Edward Jones’ adviser fee was reported as roughly 25 basis points of the total third-party slice. He described that fee level as competitive and said he plans to "actively shop" the plan every three years unless the board directs otherwise.
Speaker 4 also described operational issues with the current distribution administrator: the firm contracted for distributions was acquired by a large national company, and Speaker 4 said service levels have been poor. He said the team is preparing paperwork to move distribution services to a local Indianapolis third-party administrator, adding that the change would not increase plan costs because 5 basis points of John Hancock’s allocation already cover a TPA.
Board members asked clarifying questions about participation, allowable investments and fund review frequency. Speaker 4 said funds would be reviewed on a monthly basis going forward and that the plan’s investment lineup intentionally excludes high-risk single-stock or crypto options under the fiduciary arrangement.
Speaker 4 closed by thanking the board: "That's all I have to provide tonight."
