Download Quick Summary of SDBA Commissions and Fees

Self-Directed
Brokerage Account
The Florida Retirement System (FRS)
Investment Plan is now offering all Investment
Plan members a Self-Directed Brokerage
Account (SDBA), which will allow you to invest
in thousands of different investments in
addition to the Investment Plan’s core
investment funds. The SDBA is being offered
through Hewitt Financial Services (HFS), a
subsidiary of Aon Hewitt (the Investment Plan
Administrator).
Appropriateness
An SDBA is for experienced investors who
want the flexibility to invest in a variety of
options beyond those available in the FRS
Investment Plan. It is not suitable for all
members. There are risks associated with
many of the investments in the SDBA and you
assume the full risk and responsibility for the
investments you select. None of the
investments in the SDBA have been
reviewed for suitability by the FRS and you
are solely responsible for determining the
appropriateness of any investments in the
SDBA. You will need to select your investment
options prudently and monitor your investment
decisions carefully and frequently. You agree
to fully indemnify and hold harmless your
employer, the FRS, State Board of
Administration, Ernst & Young, Financial
Engines, Aon Hewitt, Hewitt Financial Services
and any and all service providers to the FRS
against any claims, damages, or other possible
causes of actions resulting from your use of the
SDBA. You understand that Sections
121.4501(8)(b)2 and 121.4501(15)(b) of
Florida law incorporate the federal law concept
of participant control, established by
regulations of the U.S. Department of Labor
under Section 404(c) of the Employee
Retirement Income Security Act of 1974. If you
exercise control over the assets in your
Investment Plan account (which includes the
SDBA), pursuant to Section 404(c) regulations
and all applicable laws governing the operation
of the Investment Plan, no program fiduciary
shall be liable for any loss to your account
which results from your exercise of control.
Eligibility Requirements
To participate in the SDBA you must:
 Maintain a minimum balance of $5,000 in
the Investment Plan’s core investment
funds.
 Make initial and subsequent transfers into
the SDBA of at least $1,000.
 Pay all trading fees, commissions,
administrative fees, and any other
expenses associated with participating in
the SDBA.
Investment Options
Available investment options within the SDBA
include:
 Stocks listed on a Securities Exchange
Commission (SEC) regulated national
exchange.
 Exchange Traded Funds (except for
leveraged Exchange Traded Funds)
 Mutual Funds (except for any of the
Investment Plan’s core investment funds)
Prohibited Investment Options
Investment options not permitted within the
SDBA include:
 Illiquid investments
 Over the Counter Bulletin Board securities
 Pink Sheet securities
 Leveraged Exchange Traded Funds
 Direct Ownership of Foreign Securities
 Derivatives, including, but not limited to
futures and options contracts on securities,
market indexes, and commodities
 Limited Partnerships
 Private Placements
 Buying or Trading on Margin
 Investment Plan core investment funds
 Any investment that would jeopardize the
Investment Plan's tax qualified status
Quarterly Account Maintenance Fee
You will be charged $6.25 quarterly to
participate in the SDBA.
Transaction Fees
The following table provides a quick summary
of the most common transaction fees charged
in the SDBA. Additional fees apply for other
products and services and are detailed in the
SDBA Commission and Fee Schedule in the
“Investment Funds” section on MyFRS.com.


Stock/ETF Trade Unassisted*
Stock/ETF Trade Assisted*
Mutual Fund - $500 minimum
investment
Unassisted/Assisted –NTF
Funds**
Unassisted – not NTF Funds
Assisted – not NTF Funds
Dividend Reinvestment – Mutual
Funds/Stocks
$8.75
$33.75
No fee
$46.75
$71.75
No fee
select the fund(s) you want to take money
from and the amount and then select “SelfDirected Brokerage Account” and the
percent to transfer to the SDBA.
The money transferred to the SDBA will first
be placed in the Reich & Tang Daily Income
Money Market Fund1 (usually takes 1
business day).
Once the money is in the Money Market
Fund, you can invest this money in any of
the available SDBA investment options by
making the trade online or by calling the
Investment Plan Administrator and
connecting to HFS. Funds will remain in
the Money Market fund until you direct their
investment - they will not be automatically
invested.
Making Changes
To change your investments in the SDBA,
either make the changes online or call the
Investment Plan Administrator and connect to
HFS. Please note that excessive trading
restrictions may apply to the SDBA investment
options you select. Be sure you read the
fund’s prospectus to determine any restrictions
and penalties that may be applicable.
*An unassisted trade is done solely by the member
online. An assisted trade includes assistance from an
HFS representative.
**NTF Fund list is available at [need link].
Getting Started
There are two ways to open an SDBA account,
as follows:
 Online - Logon to MyFRS.com, then choose
Manage My Benefits>Manage
Investments>Open Brokerage Account, and
complete the online form.
 Form – Complete and mail/fax an
enrollment form (available online in the
SDBA section [see first bullet] or by calling
the Investment Plan Administrator).
 Your SDBA account will be established
within one to two days of receipt of the
online or hardcopy form. Once your
account is established you will receive a
welcome email from HFS with information
on accessing and using your SDBA.
Transfer Money Back to the Investment
Plan
You can transfer any money in the SDBA back
to the Investment Plan, as follows:
 Logon to Brokerage Account Direct Access
and sell the SDBA investments.
 Once the trade settles, the proceeds will be
invested in the Reich & Tang Daily Income
Money Market Fund (usually takes three to
five business days depending on the
settlement period of the investments
liquidated).
 Once the money is in the Money Market
Fund, you can invest this money back into
any of the Investment Plan’s core
investment funds by making the trade
online or by calling the Investment Plan
Administrator and connecting to HFS.
Transfer Money into Your SDBA
Once your account has been established, you
can transfer money from your Investment Plan
account into your SDBA, as follows:
 Logon to MyFRS.com, then choose
Manage My Benefits>Manage
Investments>Change Investments>Transfer
Money from Fund(s) to Fund(s), and then
1
This fund is not insured or guaranteed by the Federal
Deposit Insurance Company or any other government
agency. It is possible to lose money investing in this
fund.
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Closing your SDBA
You may close your SDBA at any time by
calling the Investment Plan Administrator and
connecting to HFS. Then you must liquidate all
the investments in your SDBA and wait for the
proceeds to be deposited in the Reich & Tang
Daily Income Money Market Fund. Once the
money is in the Money Market Fund, you can
invest this money back into any of the
Investment Plan’s core investment funds by
making the trade online or by calling the
Investment Plan Administrator and connecting
to HFS. Subsequently, two additional
automatic transfers will be made to move any
residual money (dividends, interest, etc.) to
your Investment Plan’s core investment funds.
More Information
If you need more information on the SDBA visit
MyFRS.com or call the Investment Plan
Administrator at 1-866-446-9377, Option 4
(TRS 711).
About Hewitt Financial Services
Hewitt Financial Services LLC, member
FINRA, SIPC, is a broker/dealer that primarily
provides services to retirement plans. It is a
subsidiary of Hewitt Associates LLC (branded
Aon Hewitt), a global human resources
outsourcing and consulting firm, founded in
1940 and headquartered in Lincolnshire,
Illinois. Securities are offered by Hewitt
Financial Services, Member FINRA, SIPC. For
more information on Aon Hewitt, please visit
www.aonhewitt.com.
Withdrawals
If you have terminated employment and met
the Investment Plan termination requirements,
you may request a distribution. Distributions
cannot be made directly from the SDBA. You
must first transfer money in the SDBA back to
the Investment Plan. If your Investment Plan
account is subject to a required distribution
(e.g., a Required Minimum Distribution) and
you have insufficient money in your Investment
Plan’s core investment funds, your SDBA
investments may be automatically sold. You
will be responsible for any losses or expenses
that may apply.
Account Statements
You will continue to receive a quarterly
statement from the Investment Plan and your
SDBA total balance will be reflected on this
statement. You will also receive a separate
quarterly statement breaking out your SDBA
balances, holdings and activity during the
quarter. If any trading activity occurs in your
account during a month, you will receive a
monthly statement detailing the activity. You
will also receive a confirmation statement for
any transactions you process.
This document is intended for general information purposes only and should not be construed as advice or opinions on
any specific facts or circumstances. The content of this document is made available on an “as is” basis, without warranty
of any kind.
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Self-Directed
Brokerage Account
Quick Summary of SDBA Commissions and Fees
Quarterly Account Maintenance Fee
You will be charged $6.25 quarterly to participate in the SDBA.
Transaction Fees
Transaction fees charged in the SDBA include:
Stock/ETF Trade Unassisted1
Stock/ETF Trade Assisted1
Mutual Funds2 - $500 minimum investment3
No Transaction Fee (NTF) Funds4
Unassisted/Assisted
Transaction Fee Funds
Load Funds at NAV
No/Low Load Funds
Unassisted
Assisted
Exchange between funds
Primary Issues
U.S. Treasury
Corporate, Agency, Municipal Bonds
Certificates of Deposit
Secondary Market Trades
U.S. Treasury/Agency Bonds
Maturities 2 years or less
Maturities more than 2 years
Corporate Bonds
Maturities 2 years or less
Maturities more than 2 years
Certificates of Deposit
Maturities 2 years or less
Maturities more than 2 years
Commercial Paper
Unit Investment Trusts
Dividend Reinvestment – Mutual Funds/Stocks
Account Fees
Transfer Account to Another Provider (if approved)8
Restricted Stock Clearance
Late Payment for Trade
Voluntary Reorganization
Duplicate Statement
Foreign Security Transfer
Foreign Security Custody Fee
Foreign Security Trades
$8.75 per trade
$33.75 per trade
No fee per trade5
No fee per trade6
$46.75 per trade7
$71.75 per trade7
$10 per transaction
$24.95 per transaction
No fee
No Fee
$0.25/bond, minimum charge $24.95
$1/bond, minimum charge $44.95
$1/bond, minimum $24.95
$2/bond, minimum $44.95
$24.95 per transaction
$44.95 per transaction
$44.95/transaction, minimum $100,000
$34.95/no fee if HFS acts as principal
No fee
$75 per transaction
$150 per transaction
$30 per transaction
$30 per transaction
$5 per statement
$75 per transaction
$5 quarterly
$75 per trade, plus applicable
commission
Additional fees may be charged for other transactions or purchases. See the SDBA Commission
and Fee Schedule in the “Investment Funds” section on MyFRS.com for more information.
1An
unassisted trade is done solely by the member online. An assisted trade includes assistance from an HFS
representative.
2HFS may receive servicing fees from money market funds and mutual fund companies in addition to the clearing and
execution fees charged to you. Please refer to the HFS Plan Participant Agreement for additional details. Mutual funds are
offered by a prospectus only. Investors should consider carefully information contained in the mutual fund prospectus,
including investment objectives, risks, charges, fund minimums and expenses. You can request a mutual fund prospectus
by logging into your account and clicking on ‘Order Fund Prospectus’ under the Mutual Fund Center.
3$500 minimum applies unless fund prospectus states a higher minimum.
4NTF Funds are available with no loads or waived loads and no transaction fees. Other fees and expenses charged by
the funds will apply. Before investing in any mutual fund, please read its prospectus. A list of NTF Funds is available at
[need link].
5NTF Funds redeemed or exchanged within 90 days of the purchase date or deposit date will incur a transaction fee of
$50.00. The no-transaction-fee eligibility applies only to the initial transaction fee associated with the purchase of the fund.
It does not apply to any management fees or other expenses associated with the fund, including any redemption fees. For
full details on these expenses/fees, please refer to the mutual fund prospectus.
6Front end loaded funds or Class “A” funds are placed at Net Asset Value (NAV). Early redemption fees may apply. Not all
share classes may be purchased in Self-Directed Brokerage Accounts; all purchases are governed by the terms and
conditions in the fund prospectus.
7Due to fund procedures orders placed with certain fund families will incur a $10 surcharge over and above the normal
transaction fee. Please contact Hewitt Financial Services (HFS) for a list of affected fund families.
8Self-Directed Brokerage Accounts cannot transfer from HFS without prior approval or direction from the plan sponsor.
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