Fees Guide: Float Income in Retirement Plans – A Comprehensive Guide

In this one-pager, we delve into the concept of float income, its generation, and considerations. In recent times, float income has gained prominence due to the prevailing high (and rising) interest rate environment. As interest rates fluctuate, the impact on float income becomes more pronounced. Float income can play a significant role in retirement plans. Understanding its implications is important for plan sponsors and fiduciaries.

By Carly Miller|2024-04-09T07:11:55-04:00April 1st, 2024|Comments Off

Fees Guide: Recordkeeping Cost Drivers and Their Impact on Plan Expenses

The goal of the assessment is to highlight key drivers of recordkeeping fees. Plan characteristics can lead to vastly different fees and structures for plans with similar baseline demographics, such as the same asset level and number of participants. Beyond a plan’s core demographic profile, fees may be driven by the degree of customization a plan elects or requires. Customization may offer additional value to participants but may come at an additional cost which may or may not be justified by a higher fee. Auxiliary revenue sources to vendors such as the level of proprietary investments in plan design may also influence fees.

By Carly Miller|2024-04-01T14:16:49-04:00September 26th, 2023|Comments Off

Fees Guide: An overview of public sector retirement plan fee types and structures

The purpose of the NAGDCA Fees Guide is to provide a foundational document for the understanding of different fee types and structures that apply to government defined contribution plans. Plan sponsors will have to negotiate many different fees in many different circumstances over the course of their careers, and our intent with this document is to provide a guide that can be used as a reference over and over for each new situation they encounter.

By Carly Miller|2024-04-01T14:23:32-04:00September 26th, 2023|Comments Off

SECURE 2.0 Summary for Governmental Plans

NAGDCA's resource, adapted from Groom Law Group’s Comparison of the SECURE 2.0 Act of 2022 and Present Law, summarizes 38 SECURE 2.0 provisions that impact governmental defined contribution plans.

By Carly Miller|2023-08-31T09:29:49-04:00January 19th, 2023|Comments Off

Northwestern Decision – Takeaways for Public Plan Fiduciaries

On January 24, 2022, in a unanimous decision, the Supreme Court in Hughes v. Northwestern remanded a long-running case against Northwestern University to the lower courts for further review. While the case is only directly applicable to ERISA plans, governmental plan fiduciaries may be wise to take note of the court’s opinion and consider ways to document a record on fees and expenses that is in line with the Court’s decision.

By Carly Miller|2023-08-31T08:56:33-04:00January 28th, 2022|Comments Off