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Typically, participants are charged quarterly for plan administration, which entails a fixed fee of $9.75 per quarter, along with an asset fee of .238%(about one fourth of one percent). Contracts will vary, but your plan fees are displayed in your Summary Plan Description on an annualized basis. For example, .238% per quarter equals .95% annualized, which is also called “95 basis points” in the investment industry: one basis point equals one one-hundredth of a percent. Certain plans with Scudder, Lincoln and Manulife also pay Slavic an ongoing commission called a 12b-1 fee and the typical administration fees above may not apply in those cases; but most plans do not contain funds from those three companies.
The following fees apply
to special events situations:
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•
Participant
transfer of funds out of the plan for any reason |
•
Distributions, hardships, rollovers, QDROs (participant paid)
|
$40 |
|
•
Loan startup
–billed to participant |
$150 |
|
•
Plan
cancellations/transfers– per participant |
$40 |
•
Annual loan
maintenance-participant
|
$ 50 |
|
•
Special
profit sharing allocations- paid by company |
•
Integrated
with Social Security
|
$300 |
•
Cross
tested
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$750 |
There is a minimum plan fee of
$350 per worksite, usually paid by PEO but the PEO can elect to
deduct from participants if disclosed in the Summary Plan
Description. Only plans with less than 9 participants are affected
because $39x9=$351. The Asset Fee is not included in the
calculation, only the fixed Administration Fee.
There is an extra 25 basis point charge on assets
for participants selecting a Slavic Pre-Allocated Portfolio for
management and it is paid to the Registered Investment Advisor: Slavic Mutual Fund Management Corporation. This is in addition to the annual 95 basis point charge. The
Depository Services Inc. bank account, in the control of Slavic Integrated Administration, Inc., is part of the plan's trust and it serves as a conduit of money from the PEO to the fund companies
and from the fund companies to the participants seeking loans and
distributions. Since this account only holds money for a short
period of time, no interest is paid on that account to anyone,
including Slavic. This account is necessary to serve the liquidity
needs of the plan trust in order to effect trades on a multiple
fund platform. No bank fees or trading fees are charged to
participants of the plan. There is a Slavic Asset Fee of 55 basis points for all Scudder-only plans.
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