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

As of 6/30/2014, the City of Orlando, Florida ICMA 457's VT Plus Stable Value Fund had a Net Expense Ratio of 0.58%.

The City of Jacksonville, North Carolina's employees pay 1.38% for the exact same fund.

Jacksonville, North Carolina's employees are getting ripped off.

I hear the City of Durham is currently renegotiating their ICMA 457 plan fees.
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An email conversation with City Treasurer at City of Orlando Chris McCullion;

"On page 97 of the Plan Service Report is says you're paying 0.19% for record keeping and 0.21% for Investment Advisory totaling $776,013 paid to ICMA.

On the Fund Performance page 1, it says VT PLUS Fund charges 0.58%, but in the Service Plan Review it says the same fund costs 0.46% + 0.25% for record keeping and 0.30% for Investment advisory on page 98.

The numbers don't match.

Thoughts?"

George Hartzman
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"Our new agreement with ICMA-RC lowers the costs from the 40 bps (19 + 21) shown on Page 97 of the Plan Service Report to 12.25 bps.  The number reported on page 97 is now outdated but we just entered into the new agreement, so we do not yet have an updated plan service report with the new pricing.

The PLUS Fund expense ratio already includes the record keeping and investment advisory fee, plus includes a fee waiver to get the total costs (record keeping, investment management and fund operating costs for trades, insurance wraps, etc.) to 46 bps.  Take a look at Footnote C on the Fund Performance report.  The "alternative fee arrangement" mentioned in the footnote is what gets us to 46 bps."

Chris McCullion
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"Thank you much.

It appears to be the "all-in" fee, and you are paying half of many others.

Been looking for an example to show how fees could be lower.

Many HR folks don't believe it, even though it says it."

George Hartzman
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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