CSD-RT RFP Recordkeeping_Administration Services Response 3-

*** For More Information, Contact: ***

Stephen H. Keyser, Managing Director

1460 Craig Road • St. Louis, MO 63146

314-265-6192

CSD Retirement Trust:

Seven Years Later - Bigger & Better than Ever

as Fees Drop Again

Participant fees dropped again on January 1, 2017. Participants now pay 0.32% of their plan assets plus a $20

annual fee. Investment management fees (assessed by a mutual fund’s manager) dropped, as well. The

average annual fee for all funds is now 0.13% of plan assets annually, or a little more than one-tenth of one

percent.

When the RT launched in January 2010, a participant with a $10,000 account balance paid $157 annually.

Today a participant with a $10,000 account balance pays only $65 annually, a 59% decrease.

“Early on the Trust recognized that investment expenses were the only factor it could control,”

said Managing

Director Steve Keyser.

As the Trust’s plan assets increased, participant fees decreased. Each participant benefits from the buying

power of the Trust. Mutual funds lower fees as dollars invested increase. A fund that lowers its fee because the

Trust has $5 million invested means that all participants who invest in that fund, regardless of the amount,

benefit from the lower fee.

While fees continue to decrease, investment options continue their outstanding performance. Since the Trust

launched seven years ago, 29 of its 31 funds or 94 percent have outperformed their category average.

The Trust continues to focus on five areas to help participants improve their retirement outcomes:

•

Education

: In addition to the ongoing education at each district/charter, the Trust sponsors a

quarterly workshop on how to optimize service credits in PSRS/PEERS and Social Security

benefits. The workshops have been well attended and attendee feedback has been excellent;

•

Low fees

: As noted above and transparency;

•

Best in Class” investment options

: The RT reviews all funds quarterly replacing

underperforming funds, if needed;

•

Purchasing

service credits in the PSRS and PEERS retirement systems for no additional fees;

•

Flexible Participant Options:

In addition to offering both Traditional and Roth 403(b) and 457(b)

plans, in the last 12 months the Trust added two new services-a Managed Account option for

participants who want a professional investment advisor to oversee their investments (at a

reduced cost); and a Qualified Longevity Annuity Contract (QLAC-a recently approved Federal

program) that provides additional guaranteed retirement income and tax advantages.

Press Release

March 15, 2017