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.

The City of Des Moines Deferred Compensation Committee decided to return to participants over $64,000 in excess fee revenue accumulated over the past few years. This one-time event was completed via unit adjustment transactions performed on participant accounts on December 20th. The average credit amount per participant was just over $26 based on the average combined 457/401(a) account balance of $104,718 as of November 30, 2023.