Committee approves fee reduction and return of excess fee reserves
Effective April 1, 2020, the City of Des Moines Deferred Compensation Committee reduced the explicit asset fee assessed to cover administrative expenses related to making the City’s Deferred Compensation Plan (457 and 401(a) plans) available to employees from an annualized 0.05% to 0.04%. This reduction will reduce your fees by $1 annually for every $10,000 you maintain in your account.
In addition to the reduction of the ongoing explicit asset fee, the Committee decided to return $40,000 in excess fee revenue accumulated over the past few years back to participants. This one-time event was completed via unit adjustment transactions performed on participant accounts on April 28th. Further adjustments were processed on June 1st to adjust for combined balances in both the City’s 457 and 401(a) plans, which may have resulted in a positive or negative adjustment. The average credit amount per participant was just over $20 based on the average combined 457/401(a) account balance of $90,585 as of March 31, 2020.