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.
- 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