In 30 years, another $125 per year per employee compounded at 7% should leave another $12,634 each by mirroring the federal government's Thrift Savings Plan, designed with low cost index funds by federal employees for themselves, instead of a D.C. "non-profit" whose CEO makes more than $2 million per year.
$125 x 2,780 = $12,634
$12,634 x 2,780 = $35,122,520
Greensboro is currently allowing ICMA-RC to take excess fees from Greensboro's employees, as Winston Salem negotiated the excess fees to be returned to their employees' accounts, meaning there is a floor to how much ICMA-RC needs in revenues per participant, which Greensboro's Mary Vigue via Jim Westmoreland denied in a breach of trust to City of Greensboro employees.
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Yesterday, the City of Charlotte sent me the following correspondence again confirming fees should fall as assets rise, which Westmoreland and Vigue have so far refused to ask for;
"We have an additional fee of .15%. We reduced that from .20% last spring during our annual review. You may recall that we have proactively reduced this over the years as more participants and assets have come into the plan. We will continue to reduce that as the plan grows.
For comparison purposes, the attached doc you sent from nationwide/NACO additional fee is .70% (roughly 4.5 times higher).
Please let us know if we can be of further assistance.
Thanks
Ned Freer, CFP®, AIF®, MBA
Vice President
Voya Financial™"
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As of the 1st quarter of 2014, Greensboro had $87,898,314 in its ICMA-RC 457 plan, out of which City employees are paying $242,640 per year for record keeping instead of a comparable for what Winston Salem pays for its employees for the same thing.
$242,640 - $164,580 = $78,060 overpayment per year by Greensboro employees.
By mirroring the Federal Government's Thrift Savings Plan, Greensboro could dramatically lower the cost and increase the returns via low cost index funds.
Greensboro should ask ICMA-RC to match Winston Salem's pricing, but City Manager Jim Westmoreland and Assistant City Manager Mary Vigue, indirectly affiliated with the plan's administrators, worked to prevent lower costs with the help of financial industry lobbyists.
Westmoreland and Vigue have acted in the best interests of a retirement plan company connected to their management association instead of the employees they are supposed to represent.
Please help retain more money in our community instead of letting Greensboro's retirement plan provider skim more than necessary by contacting City Council to advocate for the reallocation and renegotiation of the plan's funds and fees.
It's the right thing to do.
George Hartzman
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Details;
http://hartzman.blogspot.com/2015/01/please-help-save-money-for-city-of.html
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How Jim Westmoreland, Mary Vigue and ICMA-RC's lobbyists shafted Greensboro's employees
http://hartzman.blogspot.com/2014/12/how-jim-westmoreland-mary-vigue-and.html
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Greensboro ICMA-RC 457 plan fund alternatives which City management refuses to look into
http://hartzman.blogspot.com/2014/11/greensboro-icma-rc-457-plan-fund.html
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401k, 457, 403b's and the Federal Government's Thrift Savings Plan
http://hartzman.blogspot.com/2014/11/401k-457-403bs-and-federal-governments.html
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Comments at Greensboro's City Council Meeting on NC State's 401(k) plan and ICMA's 457 plan
http://hartzman.blogspot.com/2014/10/comments-at-greensboros-city-council.html
