As part of the State’s reselection process, Nationwide and the State collaborated to bring you exciting plan enhancements and fee reductions that can help bring clarity to how you manage and make decisions about your Deferred Compensation account.
Commitment to fee transparency
Our renewal with the State of Florida features both a fee reduction and fee transparency. More of your contributions will now go to your account and drive potential earnings. Moreover, the fees that are assessed to your account now will be 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. Historically, these fees were offset by administrative reimbursements received by the Plan’s investment options. These reimbursements were included in the expense ratios (featured on quarterly statements) of most investment options in the Plan, so participants always indirectly contributed towards the cost of administering the Plan, in the form of an implicit management fee.
In an effort to increase transparency and more equitably allocate the cost of administering the Plan across all participants, participants whose investment options generate administrative reimbursements now will have those amounts credited quarterly to their accounts. An explicit asset fee of 8.25 basis points ($0.0825% or $0.825 dollars per $1,000 in account assets) will be assessed on your Plan’s account assets, including the Fixed Account Fund, and you will start to see this fee featured on your Third Quarter 2022 statements.
Reduced Nationwide ProAccount® managed account fee
The cost to engage in the Nationwide ProAccount® managed account solution has been reduced!
|The first $99,999
|The next $150,000
|The next $150,000
|The next $100,000
|Assets of $500,000 and above
Continued competitive 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 new 5-year contract, 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.
Continued great level of service you currently experience
Your same dedicated, salaried, and non-commissioned Retirement Specialists will continue to help you improve your retirement readiness in person, online or by phone. For your convenience, they offer one-on-on consultations and group workshops across all locations and shifts.
Contact us to learn more.