5 / 499
the weighted average investment management fee) today vs. $157 for that same
account when the Trust launched in January 2010, a 59% decrease. Participants receive
a quarterly account statement showing administrative fees for the prior quarter for
transparency.
Providing diversified investment options using a single trading platform for both
403(b) & 457(b) plans:
The Trust offers actively managed, low-cost passively
managed index funds and age-appropriate target date funds. On a quarterly basis, CBIZ
and the Trust’s Investment Committee monitor/report on fund performance and replace
underperforming funds as needed. In seven years, only two funds have been replaced.
From inception of the Trust in Jan 2010 through December 31, 2016, the Trust’s
investment options have outperformed their category peer group average
performance 94% of the time. During that same time, investment management
fees for 91% of the Trust funds have decreased.
Adding Managed Accounts:
For participants who prefer a professional investment
service to manage their investments, the Trust has engaged Ibbotson through its
partnership with VALIC to do so at significantly lower cost than outside the Trust’s
umbrella.
Adding a Qualified Longevity Annuity Contract (QLAC)
so retirees have a
guaranteed income option in addition to PSRS/PEERS plus tax benefits.
Providing flexibility
with both pre- and post-tax (Roth) deferral options for its 403(b)
and 457(b) plans
Enabling participants to buy time into the PSRS system with no rollover fees.
Focusing on participant education and retirement outcomes
, not selling products,
using non-commissioned, licensed Financial Advisors whose compensation is not effected
by an employee’s investment choice.
And addresses Springfield’s issues by:
Solving compliance, including tax compliancy, for the district and its participants;
Being faster and more flexible to incorporate needed plan changes, e.g. ROTHs, Managed
Accounts, QLAC;
Placing all providers (including current ones) under the Trust’s umbrella for all
administration, thereby improving compliance in the areas of loan, hardship withdrawals,
etc.;
Saving Administration time and money, thereby helping allocate valuable resources to
other needs; and
Ensuring consistent plan communications.
Additionally, the Trust provides:
A comprehensive communication/education strategy
un-paralleled in the industry.
The Trust complements VALIC’s vast resources that deliver a “spectrum of client care”
from technology to personal service and many points in between. Our service team
works with the Springfield Public Schools to customize the strategy and deliver the tools
and tactics that will work best in the organization. In addition to the variety of
educational programs that VALIC conducts the Trust also, on a quarterly basis, presents a
program for employees focused on optimizing their PSRS, PEERS and Social Security
benefits as part of our focus on retirement education. The Trust is also launching a new