One who intends to leave others better off for his having existed.

3/4/15

From; NC District 59 Representative Jon Hardister To; NC Treasurer's Office "pertaining to 401(k) and 457 plans"

Dear NC Treasurer's Office:

Recently I met with Mr. George Hartzman, who is one of my constituents in Guilford County. He informed me that he has been trying to obtain information from the NC Treasurer's office pertaining to 401(k) and 457 plans. In our meeting, the concerns that Mr. Hartzman raised related to this issue appeared to be valid.

Attached is a list of questions that Mr. Hartzman has requested a response to. I would respectfully request that you provide us with an answer to these questions at your earliest convenience.

Also, please note that I have copied Mr. Hartzman on this correspondence.

Thank you for your time. I look forward to hearing from you soon.

Best regards,

Rep. Jon Hardister
NC House - District 59
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Information request for the North Carolina Treasurer's office on North Carolina's 401(k) and 457 plans.

Please provide an explanation of the 2013 replacement of the Small Mid Cap index fund with an annual cost of 0.166% in North Carolina 401(k) and 457 GoalMaker portfolios to five managers in North Carolina Small/Mid Value and Small/Mid Growth Funds, averaging about 0.8395%, or more than five times more.

Please provide an explanation of the 2013 replacement of the International Index Fund with a total annual cost to participants of 0.184% in North Carolina 401(k) and 457 GoalMaker portfolios to two managers in the International Fund charging 0.684%, or more than three times more.

Please provide a detailed, itemized analysis of commissions charged to North Carolina's 401(k) and 457 plan participants for individual trades in North Carolina's Small/Mid Value, Small/Mid Growth and International Funds for 2013, and a description of how the trade commissions were accounted for within the fee matrix.

Please provide an estimate of the current annualized total of fees as a percentage of assets and in dollar terms, charged to North Carolina employees for North Carolina's 401(k) and 457 plans.

Please provide an annualized estimate of the current non-investment related fees stated in dollars per participant being charged each North Carolina 401(k) and 457 plan participant.

Please provide a detailed analysis of fees as defined under "Other Investment Expenses" as a percentage of assets and in dollar terms, paid for by North Carolina 401(k) and 457 plan participants in 2013, including an unbundled accounting of payments to whom and how much they received for what and when, within itemizations of "ongoing legal, accounting, auditing, custody, reporting, compliance, and other miscellaneous expenses".

Please provide a detailed analysis of fees as defined under "Administrative Fees" as a percentage of assets and in dollar terms, paid for by North Carolina 401(k) and 457 plan participants in 2013, including an unbundled accounting of payments to whom and how much they received for what and when, within itemizations of "costs of audits, legal and consultant services, and other Plan expenses".

Please provide a detailed analysis of fees as defined under "Recordkeeping Fees" as a percentage of assets and in dollar terms, paid for by North Carolina 401(k) and 457 plan participants in 2013, including an unbundled accounting of payments to whom and how much they received for what and when, within itemizations of "fees associated with Prudential’s maintaining" individual accounts, "such as recording and tracking your contribution amount and investment activity".

Please provide an explanation of why North Carolina's 401(k) plan's Stable Value Fund, as of 3/31/14, charges 0.308% for Investment Expenses, Recordkeeping and Administrative Fees, while the Investment Management Fee of 0.135% is less than a third of the 0.443% total fees charged to participants.

Please provide an explanation of why North Carolina's 401(k) and 457 plan Stable Value Funds Administrative Fees, 0.054% and 0.052 respectively as of 3/31/14, are more than double the Administrative Fees for the rest of the fund lineup, which are charged 0.025%

Please provide an estimate of the current annualized total of fees paid to Galliard Capital Management, a wholly owned subsidiary of Wells Fargo, as a percentage of assets and in dollar terms charged to North Carolina employees in North Carolina's 401(k) and 457 plans.

Please provide an estimate of the current annualized total of fees Wells Fargo receives as a percentage of assets and in dollar terms charged to North Carolina employees in North Carolina's 401(k) and 457 Stable Value Funds.

Please provide a total of the number of filled positions within the North Carolina Treasurer's office assigned to manage the state's 401(k) and 457 plans, along with budgeted positions that remain unfilled by current, active employees.

George Hartzman
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Sent to;

brad young@nctreasurer
tsersboard@nctreasurer
lgersboard@nctreasurer
mary.buonfiglio@nctreasurer
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Guilford County, Asheville, Greensboro and Winston Salem Retirement Plan Fee Comparisons and Rip Off

http://hartzman.blogspot.com/2014/10/guilford-county-asheville-greensboro.html

ICMA US Stock Fund Expense Comparison; Guilford County and Winston Salem; 0.94% Difference

http://hartzman.blogspot.com/2014/10/icma-us-stock-fund-expense-comparison.html

ICMA Target Date Fund Expense Comparison; Greensboro, Durham and Guilford County

http://hartzman.blogspot.com/2014/10/icma-target-date-fund-expense.html

Would most employee retirement plan investors prefer $121,040 after three years or $117,068?

http://hartzman.blogspot.com/2014/10/would-most-employee-retirement-plan.html

City of Durham VT PLUS Stable Value Fund Expense Ratio = 1.11%; Orlando, Florida, Same Fund = 0.58%

http://hartzman.blogspot.com/2014/10/city-of-durham-vt-plus-stable-value.html

Jacksonville, North Carolina employee fees for the same 457 plan fund compared to Orlando, Florida's

http://hartzman.blogspot.com/2014/10/jacksonville-north-carolina-employee.html

Some Wells Fargo Employee 401(k) plan Fund Expense Ratios as of 3/21/2013

Wells Fargo Stable Value Fund Expense Ratio = 0.20%

http://hartzman.blogspot.com/2014/10/some-wells-fargo-employee-401k-plan.html

On North Carolina State's 401(k) and 457 "GoalMaker" Target Date Funds

http://hartzman.blogspot.com/2014/10/on-north-carolina-states-401k-and-457.html

North Carolina State 401(k) replaced index funds with higher cost actively managed accounts in 2013

http://hartzman.blogspot.com/2014/10/north-carolina-state-401k-replaced.html

"Investors pay exorbitant [401k] investment fees"

http://hartzman.blogspot.com/2014/09/investors-pay-exorbitant-401k.html

North Carolina State 401(k) plan; Galliard is owned by Wells Fargo

http://hartzman.blogspot.com/2014/10/north-carolina-state-401k-plan-galliard.html

"NC Pension Accused of Pay-to-Play Violations"

http://hartzman.blogspot.com/2014/10/nc-pension-accused-of-pay-to-play.html

A Few Observations on Share Classes and Wells Fargo Stable Return Fund

http://hartzman.blogspot.com/2014/06/a-couple-of-observations-on-share.html

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