Helping Idaho Public Employees Build A Secure Retirement

Choice 401(k) Plan Fees

Record Keeping and Administration Fees

The Record Keeping and Administration fees range from $0.50 to $14.00 per month, depending on the size of the balance in your account. PERSI will implement a tiered fee structure, where members with lower balances will pay minimal fees. Fees increase gradually as the balances increase, but will be capped once a balance of $500,000 is reached.

Three types of expenses are associated with operating the Plan; record keeping (third party administration), administration (PERSI staff, auditors, legal), and investment management fees.

  • Record Keeping and Administration: PERSI will implement a tiered fee structure, where members with lower balances will pay minimal fees. Fees increase gradually as the balances increase, but will be capped once a balance of $500,000 is reached.

  • Investment management fees for all funds in the Plan, with the exception of the Total Return Fund (TRF) and the Short-Term Investment Portfolio (STIP) have been in place since the Plan began in 2001. Investment Management Fees for the TRF and STIP effective 5/1/2015.

Average
Account Balance
Monthly
Administration Fee
$0.01 to $100 $0.00
$100.01 to $1,000 $0.50
$1,000.01 to $2,000 $1.00
$2,000.01 to $4,000 $2.25
$4,000.01 to $10,000 $4.00
$10,000.01 to $30,000 $6.00
$30,000.01 to $50,000 $8.25
$50,000.01 to $100,000 $9.75
$100,000.01 to $200,000 $10.75
$200,000.01 to $500,000 $12.00
$500,000.01 or more $14.00

Investment Fees

Funds charge investors fees and expenses. A fund with high costs must perform better than a low-cost fund to generate the same returns for you. Even small differences in fees can translate into large differences in returns over time. For example, if you invested $10,000 in a fund that produced a 10% annual return before expenses and had annual operating expenses of 1.5%, then after 20 years you would have roughly $49,725. But if the fund had expenses of only 0.5%, then you would end up with $60,858, an 18% difference. A handy fee calculator is on the SEC (Securities and Exchange Commission) website where you can tell the actual impact of these fees on your particular investment. The SEC website also has other helpful information.

Several types of fees may be charged for mutual funds. Participants incur only one investment related fee - the asset management fee for each particular fund. There are no account fees, actuarial risk charges, sales fees, or front or back loads to the fund options in the PERSI Choice 401(k) Plan. The asset management fee is deducted from the return on a daily value basis. If your selected mutual fund earned 8.6% return for the year and the fee is .10% your return will be reported as 8.5% for the year with the .10% fee deducted.

The following chart provides the fees for the investment options offered by the PERSI Choice 401(k) Plan.

 
Choice 401(k) Plan Funds (As of 05/01/2015) Ticker Symbol Asset Class Annual
Management Fee
PERSI Total Return Fund No ticker symbol Balanced Fund 0.27%
Calvert Balanced Fund CBAIX Balanced Fund (applying socially responsible criteria) 0.70%
PERSI Short-Term Investment Portfolio (STIP) No ticker symbol Fixed Income 0.11%
U.S. Bond Market Index Fund No ticker symbol Fixed Income 0.05%
U.S. Treasury Inflation-Protected Securities (TIPS) Index Fund No ticker symbol Fixed Income 0.05%
Dodge & Cox Fixed Income Fund (Dividend Details) DODIX Fixed Income 0.43%
U.S. Broad Market Equity Index Fund No ticker symbol U.S. Equity 0.05%
U.S. Large Cap Equity Index Fund No ticker symbol U.S. Equity, Large Cap 0.05%
Vanguard Growth & Income Fund VGIAX U.S. Equity, Large Cap 0.26%
U.S. Small/Mid Cap Equity Index Fund No ticker symbol U.S. Equity, Small and Mid Cap 0.05%
T. Rowe Price Small Cap Stock Fund OTCFX U.S. Equity, Small Cap 0.91%
International Equity Index Fund No ticker symbol International Equity 0.07%
Emerging Markets Equity Index Fund No ticker symbol International Equity 0.09%
Brandes International Equity Fund (Dividend Details) BIIEX International Equity 1%
U.S. REIT Index Fund No ticker symbol U.S. Equity – Real Estate Investment Trust Securities 0.10%