Download 403(b) – Vendor Charge Comparison Annuities

403(b) – Vendor Charge Comparison
The School District of Palm Beach County created these charts to provide a comparison of the various types of investment products and their respective
fees under the 403(b) program. Many vendors offer more than one investment product, so some of the fees are shown as ranges. The information was
correct as of the date this summary was created. Contact the investment provider directly if you have any questions. If there is a conflict between the
information provided in this chart and the actual fees assessed by the investment provider, the terms of your contract with the provider will control.
Annuities: Standard Interest, Equity Index and Variable Annuities
Annuities are provided by insurance companies that provide investment services. Standard interest annuities usually provide for safety of principal and a
current interest crediting rate. Variable annuities usually offer both a fixed interest account, along with separate accounts that are invested in the market.
There is no guarantee of principal or interest in any market-based separate account. Service based company representatives assist employees
Mutual funds: Mutual Funds and Custodial Accounts
These products are offered by investment management companies and brokerage firms. Participants may direct their contributions to various investment
portfolios which are managed by the custodian or management company. Investment portfolios can include funds from a single fund family or can consist
of a custodial platform that spans several fund families on a single statement. Service based company representatives assist employees. No load funds
do not provide the same level of service and thus have lower fees.
All vendors listed have entered into information-sharing agreements with the plan sponsor.
District administrative requirements allow companies which meet certain standards and maintain a minimum number of employee accounts to provide
403(b) TSA accounts to employees. The companies listed are currently authorized under administrative guidelines to establish 403(b) and 403(b)(7)
accounts for the employees of the School District of Palm Beach County.
These charts do not reflect any opinion as to the financial strength or quality of product or service for any company. Employees should contact a local
representative to obtain specific information on plans available.
ANNUITIES--Standard Interest and Equity Index
Fixed Annuities come in two basic types. The Standard Interest annuity is much like a traditional savings account or certificate of deposit. Interest is credited daily and
interest rates are determined by the life insurance company on a periodic basis. There are also gurantees of principal and minimum interest along with a current interest
crediting rate. Equity Indexed annuities provide similiar guarantees of principal and minimum interest. The difference is that the interest is credited based on a market
index and the participation rate defined in the contract. Interest can be credited annually or at the end of the contract period. Equity Index annuities are more complex in
nature but have provided higher interest rates in good market years.
Company Name
ING
Interest Crediting
Method
Standard interest
credited daily based
Reliastar
on balance in interest
crediting rate.
Great American Life
Insurance Company
(GALIC)
Standard interest
credited daily based
on balance in interest
crediting rate.
Equity Indexed Interest is credited
based on an agreed
Life Insurance of the
time period and
Southwest (LSW)
reflects a percentage
participation on stock
market movement.
Horace Mann
Met Life
Current Interest
Rate
Surrender Period
District Admin Fee
Charged to Vendor
2.15%
2.85% + 1.5% bonus
on each contribution
for 12 months
5% for 5Yrs. Rolling.
12 yr max
Waiver of
withdrawal charges
Included in listed fees Included in listed fees if disabled or in a
nursing home for at
least 60 days
2.5%
Great Flex 6
FlexMax
1.95% on 90% of
Money
2.00% (GIR is
reviewed and may be
New money method:
changed for new
interest credited daily issues in January and
based on balance at
July of each year)
each interest
crediting rate
Standard interest
credited daily based
on balance in interest
crediting rate.
Recordkeeping Fee
to Third Party
Benefit Sensitive
Vendor
Guaranteed
Interest Rate
3.00%
Rolling 6 years max
10 yrs
Rolling 7 years max 10
3.1% + 2% bonus on
yrs waived after 7 Included in listed fees Included in listed fees
new money
years if age 55 or
older and separated
from service
N/A
7 Yr or 10 year
Included in listed fees Included in listed fees
No
Yes. Separation
from Service after
holding account 5
years
2.75%
Yes, MVA (Market
Value Adjustment)
waived on death,
None (MVA applies on
disability, financial
Included in listed fees Included in listed fees
guarantee period
hardship,
accounts)
annuitization and
required minimum
distributions
3.00%
After 1st year,
disability, terminal
Up to 7 yrs for Class L,
illness, nursing
up to 13 yrs for
Included in listed fees Included in listed fees home; after 5 years,
Class B, and 0 yrs
retirement or
for Class C
severence of
employment
ANNUITIES- Variable
Variable Annuities are investments that include market based investments called Sub-Accounts and fixed interest and money markeet funds. Sub-Accounts are managed like mutual funds
and will flluctuate with market conditions. Variable annuities usually offer a death benefit in the event that death occurs when the value of the account is lower than the amount contributed.
You may also be able to move funds between fund families or to and from the fixed interest account when necessary.
Company Name
M&E Fee
Max Fee Reduction
Avg. Sub-acct Fee
Other Fee*
VALIC
0.97%
0.32%
0.66%
N/A
AXA Equitable
0.90%
0.20%
0.93%
GALIC
1.25%
0.50%
1.00%
$30.00/Year
Horace Mann
0.95%
0.75%
1.07%
$25.00/Year
ING
ILIAC
0.75%
0.00%
0.83%
N/A
Class B - 1.15%
Class L - 1.3%
Class C - 1.45%
None
0.92%
MetLife
1
Surrender Penalty
Recordkeeping
District Admin Fee
for Early
Fee to Third Party
Charged to Vendor
Withdrawal**
Vendor
5% of last 60 months Included in listed fees
deposits. Waived at
retirement.
Lesser of 2% or
Declining 10-yr
Included in listed fees
$30.00/Year - Waived
waived upon
with an account
separation of service
balance of $25,000
Rolling 6-yr Waived Included in listed fees
at retirement if age
55 or older
None
Included in listed fees
5% reducing to 1% Included in listed fees
each year to 0 at end
of 5 years - no penalty
upon separation from
service
$30.00/Year Waived May be assessed for Included in listed fees
if purchased
early withdrawals
payments exceed
$2,000 in a 12-month
period or if account
balance is $25,000 or
more
* Annual contract fees may be reduced at certain account values or annual contribution amounts. Please see your representative for contract provisions.
Total Avg. Fees
$12/year
1.63% + $12
Included in listed
fees
1.83% + $30.00 (if
applicable)
Included in listed
fees
1.75% + $25.00
Included in listed
fees
Included in listed
fees
2.02% + $25.00
Included in listed
fees
Class B - 2.07%
Class L - 2.22%
Class C - 2.37%
1.58%
MUTUAL FUNDS- Custodial Accounts
Custodial accounts include several mutual fund offerings under one account with one statement. There are different pricing models for services provided, everything from low fee without
an active local representative, to a higher fee model that includes a higher service level with a local representative. Usually, you can move funds from one mutual fund to another without
fees.
Company Name
A Share Load
Wrap Fee
Max Fee
Reduction
Avg. Fund Fee
Custodian Fee
Plan Member
5.75%
1.50%
0.75%
0.25% (.11% for
Index portfolio
$25.00/Year
Plan Member *Direct
N/A
0.35%
0.00%
0.90%
$25.00/Year
Legend
5.75%
N/A
None
1.13%
$15.00/Year
Lincoln Inv.
5.75 Max
.90% (Premier)
0.70%
0.76%
$35.00/Year
GWN (Buttleman)
N/A
1.50%
0.80%
.15 to 2%
None
GWN (Buttleman)
5.75% Max
N/A
0.00%
.37% to 1.50%
$25.00/Year
Primerica
N/A
N/A
None
0.70%
$20
District Admin Fee
Charged to Vendor
Recordkeeping fee to
Third Party Vendor
Included in listed fees
Included in listed fees
Included in listed fees
Included in listed fees
Included in listed fees
Included in listed fees
Included in listed fees
Included in listed fees
Included in listed fees
Included in listed fees
Included in listed fees
Included in listed fees
Included in listed fees
Included in listed fees
Total Avg. Fees
5.75% on each
contribution + 1.75%
=$25
5.75% on each
contribution + 1.25%
+ $25
5.75% on each
contribution + 1.13%
+ $15
5.75% on each
contribution + 90% +
$35
1.5% plus Fund Fees
5.75% on each
contribution + $25 +
.37% to 1.5%
$20 Year
* Direct - This portfolio is established with a representative but does not include a high level of personal service due to the low fees assessed.
MUTUAL FUNDS- No Load
No Load Mutual Funds are available through online enrollment or with paperwork with the respective company and does not include local personalized representation. This is the lowest
priced offering as it is directly with the fund company.
Company Name
Custodial Fee
American Century
N/A
Fidelity Funds
$24/Year
Avg. Fund Fee
District Admin Fee
Recordingkeeping Fee
Paid to Third Party
Vendor
Fund Fees + $22
0% (American Century Investments does not provide an
Not assessed to no
average fund fee calculation. Fees associated with a fund
load companies
can and do change and are sometimes waived.)
$12/year
Not assessed to no
load companies
$12 Year
0.91%
Total Average Fees
.91% + $36
Revised 4/23/2015