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DeKalb committee backs 10‑basis‑point fee leveling for employee Nationwide accounts
Summary
Finance staff recommended, and the committee approved, an across‑the‑board 10 basis point (0.10%) administrative fee for Nationwide retirement accounts covering about 5,200 county employees; proponents said it lowers fees for roughly 93% of participants but will raise fees for about 7% who currently pay nothing.
Finance staff presented a proposal to standardize the administrative fee for Nationwide retirement accounts at 10 basis points (0.10%) regardless of investment election. The presenter, identified in the record as Dr. Volker, told the committee the change would make fees more transparent and reduce litigation risk tied to undisclosed higher fees on some funds.
Dr. Volker said the average Nationwide account balance is about $40,000 and that at 10 basis points the administrative fee would equal roughly $40 per year. He said most participants (about 93%) would pay less under the proposal; about 7% who now invest in fixed‑income options and pay no administrative fee would see a small increase. The presenter added that participants would be notified in advance by mail and could change their investment option if they wished.
Commissioners asked for clarification about current fee ranges and the meaning of 10 basis points; Dr. Volker explained that fees vary across funds and that some funds currently carry administrative fees up to 85 basis points (0.85%), and that 10 basis points is 0.10% (one‑tenth of 1 percent). A motion to approve the fee leveling was made and seconded; the committee approved the item by voice vote.
Next steps: staff will implement the fee change with advance notice to participants and continue communication about available investment options.
