Helping Idaho Public Employees Build A Secure Retirement

Choice 401(k) Plan 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, located at
http://www.sec.gov/investor/tools/mfcc/mfcc-int.htm that can tell you the actual impact of 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, front or back loads to the fund options in the PERSI Choice 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 Plan.

Choice Plan Investment Fees

Fund Name Asset Class Fee
PERSI Total Return Fund Balanced (Default Fund)
0.00%
PERSI Short-Term Investment Portfolio (STIP) Fixed Income
0.00%
Mellon Bond Index Fund Fixed Income
0.08%
Mellon S&P 500 Stock Index Fund Domestic Equity, Large Cap
0.08%
Mellon International Index (EAFE) Fund International Equity
0.14%
Mellon Market Completion Fund Domestic Equity, Small/Mid Cap
0.08%
Mellon US Equity Market Strategy Domestic Equity, Full Cap
0.10%
Calvert Socially Responsible (Sudan-free) fund Balanced fund
0.70%
Vanguard Growth & Income Fund Domestic Equity, Large Cap
0.36%
Dodge & Cox Fixed Income Fund* Fixed Income
0.43%
Brandes International Equity Fund* International Equity
1.00%
T Rowe Price Small-Cap Stock Fund Domestic Equity, Small Cap
0.92%

* These funds have a rebate arrangement where you are charged a greater fee on a daily basis and have a rebate credited to your account from time to time so your actual net fees will be at the rate stated on the chart. The rebates are credited shortly after the end of each calendar quarter.