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Fidelity Retirement Plan Updates

For years, Fidelity and TIAA’s fees were not transparent and were included in the fees for each fund (other than Vanguard funds).

  • HUB was able to calculate that the fees Fidelity was receiving could be up to 16 BP.  There was some revenue credit spread between all employees with accounts.
  • TIAA was retaining 5 BP and refunding the balance as a revenue credit to all employees with accounts.

Under the new transparent fee structures, recordkeeping fees built into funds that are over that amount needed to cover the annual fees are refunded directly back to the employee (no longer spread over all employees enrolled in the plan).

Effective 7/1/2021, we changed the fee structure with Fidelity to 5.75 BP (using a goal of $55 per participant).

Effective 10/1/2021, we changed the fee structure with TIAA to 2 BP.  The total overall amount retained by TIAA was approximately the same as the amount retained by Fidelity; however, the BP amount was higher because total funds invested with Fidelity are about half of what is invested with TIAA.

Effective 10/1/2022, we changed the fee structure with TIAA to a tiered structure based on account balances:

Total Accounts Balance Quarterly Fee Annual Fee
$0 through $9,999.99 $1.00 $4.00
$10,000 through $49,999.99 $4.00 $16.00
$50,000 through $199,999.99 $10.00 $40.00
$200,000 through $499,999.99 $25.00 $100.00
$500,000 through $999,999.99 $37.50 $150.00
$1 Million and above $50.00 $200.00

Effective 1/1/2023, we will change the fee structure with Fidelity to $62 per account over $5,000.