Understanding your plan fees and expenses
To keep the retirement plans in line with industry best practices, USG will update the fee structure arrangement. The new fee structure provides a significant savings overall. However, the amount of savings each participant will experience depends on how individual contributions and balances are allocated among the investment options.
Participants in the plan have generally paid for three categories of plan-related costs:
- Recordkeeping fees (paid to the plan’s recordkeepers).
- Administrative fees (paid to the plan’s investment consultant, auditors, accountants, outside counsel and other administrative resources).
- Investment expenses (taken out of individual investments by the managers of the funds in which participants were invested).
In the past, participants did not see separate charges for these plan-related costs on their quarterly statements; the costs were netted against participants’ investment balances. The recordkeeping and administrative fees were paid out of the investment expenses charged by the providers of the funds in which the participants were invested, and were based on the total assets in each participant’s account.
Going forward, the recordkeeping fees will be assessed based on a percentage of your account balance and will vary by provider. These fees and the investment expenses charged by the managers of the funds in the investment lineup are listed in the Guide to New Investments. These expenses are generally lower than the expenses charged by the managers of the funds in the prior lineup.