December 1, 2016
At the November 21st meeting, the Public Employees Retirement Board approved three changes to NPERS administrative fees. Effective December 25, 2016, administrative fees for County Defined Contribution participants will decrease from 5.5 basis points to 4.5 basis points. Participants in State Defined Contribution will see an increase of the administrative fee from 1.5 to 4.0 basis points. Individuals participating in the voluntary Deferred Compensation plan will see the fee increase from 5.5 to 6.0 basis points.
One basis point is equivalent to 0.01% or 0.0001 in decimal form. For a $10,000 account, 5.0 basis points would result in a $5.00 annual fee. A breakdown of the administrative fees may be found in the Fee Detail section on member statements.
This fee is charged to cover a portion of NPERS operating expenses. NPERS strives to keep these fees reasonable and affordable. Plan expenses are evaluated periodically and fees are subject to adjustment as needed. By law, these fees may only be used to pay for the expenses incurred in the plan from which the fees were collected.