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The CSD Retirement Trust
“Cooperative buying power that benefits
Districts and their Participants”
-over-
CSD-RT 010117
District Fees
:
o
Districts pay no fees to sponsor the CSD-RT.
Participant Fees
:
o
Participants currently pay the following fees, which are a “line item” on participant statements for the
following service providers:
1.
CSD-RT Marketing, Legal, Insurance, Administration & Governance-$20 fixed fee/annum.
2.
Participants pay a 0.32%
(32 bps) annual asset based administrative fee
.
VALIC Recordkeeping, Administration, Education, Compliance & Advisors-23bps/annum
CBIZ Consulting and Investment Advisory Services-8.75bps/annum
Investment Management Fees:
o
Range from
0.04% to 1.10%
depending on investments selected. The current weighted investment
management fee average based on participant investing behavior is 0.13%
(13 bps)
which is netted from
investment returns.
Total Fees:
Based on the weighted investment management fee above, a participant with a $10,000 account
balance will pay $65/annum. When the Trust launched in January 2010, a participant with a $10,000 balance
paid $157/annum, a 59% decrease.
Benefits to your District and your Participants:
o
Why is the CSD Retirement Trust “A Better Choice”?
1.
A
consortium solution
with 39 participating school districts, over 4,200 participant accounts
and $93+ million in assets as of 2/28/17.
2.
A “
Best in Class
” model that improves retirement outcomes for participants.
3.
Lowers fees
and makes them transparent; no front load commissions, no surrender charges, no
M&E expenses, no 12(b)(1)fees. Administrative fees have reduced -59% since the inception of
the program in January, 2010 through December 31, 2016. During that same time, because of
the Trust’s buying power, Investment Management fees have decreased in 91% of the
investment options.
4.
Provides
32 multi-manager investment options
including actively managed, target-date &
index funds as well as professionally managed investment accounts.
5.
From January, 2010 through December 31, 2016, the Trust’s investment options have
outperformed 94%
of their category peer group averages.
6.
Deploys
non-commissioned
, FINRA licensed financial advisors to focus on education and
retirement outcomes. Advisor compensation is not determined by what funds your participants
choose.
7.
Offers
Managed Accounts
(reduced cost) for those participants who prefer to have a
professional investment manager oversee their accounts.
8.
Offers a
Qualified Longevity Annuity Contract (QLAC)
for retirees seeking guaranteed
monthly income with tax advantages
9.
Offering both
Traditional (pre-tax) and Roth (after tax)
deferral options.
10.
Ensures
tax compliancy
while remaining nimble and flexible when it comes to plan
amendments and changes.
11.
“
Retirement Manager
” technology coordinates and improves District administration,
compliance & record keeping responsibilities.
12.
Places all providers (including current) under the
Trust’s umbrella
.
13.
Saves Districts time and money
.
What is your decision?