Earlier this year, Nationwide was honored to be re-selected as a Deferred Compensation Plan Investment Provider by the State of Florida Deferred Compensation Plan. A series of enhancements and modifications were detailed in communications distributed at that time.

Two items are recapped here:

• Our commitment to fee transparency
• Continued competitive Fixed Account Fund rate of return

Fee transparency summary

The fees that are assessed to your account are now clearly featured as an Explicit Fee (an asset management charge). An explicit asset fee allows us to be transparent and clearly share how account fees are assessed.

Context:

• The Plan incurs general fees for ongoing administrative services for assets held in the Plan. Previously, these fees were offset by administrative reimbursements received by the Plan’s investment options and were included in the expense ratios of most investment options in the Plan, which means that participants indirectly contributed towards the cost of Plan administration in the form of an implicit management fee.
  
  
• To provide improved transparency and more equitably allocate the cost of administering the Plan across all participants, participants whose investment options generate administrative reimbursements now have those amounts credited quarterly to their accounts. An explicit asset fee of 8.25% basis points ($0.825 dollars per $1,000 in account assets) is then applied.
  
  
• Assets in the Fixed Account Fund are included in the calculation of the Explicit Fee.

Fixed account fund rate of return

• Through the end of 2022, the current 3.50% return on assets held in the Fixed Account Fund will be maintained.
  
  
• Over the course of the 5-year contract between the State of Florida Deferred Compensation Plan and Nationwide, an average annual 3.0% guaranteed rate of return will be in effect. This approach accommodates market fluctuations while also generating the most competitive guaranteed rate of return possible.
  
  
• The competitive minimum rates of return for the Fixed Account Fund that could be assessed for 2022 – 2023 are as follows:
  
  
  • Fourth Quarter 2022 — 3.50% (October - December 2022)
  • 2023 — 3.20% (January - December 2023)
  
  We encourage you to compare this rate of return with other firms with whom you might do business.