How to save $20,967,663 for the City of Durham's employees invested in ICMA-RC's 457 retirement plan

If the City of Durham asked ICMA-RC to match Winston Salem and Orlando, Florida's pricing, the City of Durham could save about $347,848 per year for Durham's employees invested in ICMA-RC's 457 plan.

Durham should ask ICMA-RC to match Winston Salem and Orlando's pricing;

Winston Salem's consultant said ICMA's [Stable Value] VT PLUS's base cost, which may be relatively high, is 0.48%.

For Durham's ICMA's VT PLUS [Stable Value] Fund,
which had $2,678,476 as of 2014's first quarter,
should cost no more than 0.11% + 0.48% = 0.59%
instead of 1.12%.

The total cost for Durham's $2,678,476 stable value fund should be at most;
$2,678,476 x 0.59% = $15,803,
instead of $29,999, or about $14,196 less,
meaning employees with money in ICMA's VT PLUS fund
could make another $14,196 more per year.

$25,531,109 total - $2,678,476 Stable Value = $22,852,633 in Equities and Bonds.

By mirroring the rest of Durham's 457 plan assets with the Federal Government's Thrift Savings Plan, designed by federal employees for themselves, the City could dramatically lower costs to employees and increase returns via low cost index funds, whose expense ratios would be even lower if assets held in each fund were larger than $5 million;

Vanguard Intermediate-Term Bond Index Fund
Expense Ratio = 0.10% + 0.11% for Record Keeping = 0.21%

Vanguard Extended Market Index Fund
Expense Ratio = 0.10% + 0.11% = 0.21%

Vanguard FTSE All-World ex-US Index Fund
Expense Ratio = 0.15% + 0.11% = 0.26%

Vanguard 500 Index Fund
Expense Ratio = 0.05% + 0.11% = 0.16%
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The total cost for Durham's $22,852,633 in bond and equity funds could be at most 0.21%,
which is the average of the funds above including Record Keeping fees.

$22,852,633 x 0.21% = $47,991, including Record Keeping fees for equities and bonds.

$47,991 + $15,803 for the Stable Value fund including Record Keeping fees
= $63,794 possible total annual cost

$63,794 / $25,531,109 = 0.25% instead of 1.06%, or the $271,472 currently being paid.

$271,472 - $63,794 = $207,678 in total potential annual savings
for everyone invested in the Durham's ICMA-RC 457 plan.

$207,678 / 461 participants = about $450 more per participant in year one.

In 30 years, another $450 per year per employee compounded at 7%
should earn another $45,483 per participant.

$45,483 x 461 = $20,967,663 potential savings for Durham's employees
invested in ICMA-RC's 457 plan over the next 30 years
compounded at 7% once annually.
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A $59.18 per participant charge for record keeping for each Winston Salem's was proposed by ICMA-RC, dated November 30, 2011, as Orlando, Florida, which re-negotiated their fees in 2014 appears to be paying about $57.23 per employee as of Q3 2014.
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Per ICMA-RC, the City of Durham had $25,531,109 in its ICMA-RC 457 plan with 461 participants, and is paying $130,646 per year for Record Keeping, as Q2 2014.

461 employees x $59.18 per employee = $27,281

$130,646, what Durham is currently paying,
- $27,281, which is what Winston is for Durham's 461 employees
= $103,365 per year being overcharged to Durham by ICMA-RC for Record Keeping.

$27,281 / $25,531,109  = 0.11% which Durham should be paying for Record Keeping
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Please help retain more money in our state by supporting the reallocating and renegotiation
of Durham's 457 plan's funds and fees.

It's the right thing to do.

Dear Tony Wilkins, Nancy Vaughan and Hoffmann, Jamal Fox, Mike Barber, Sharon Hightower, Marikay Abuzuaiter, Connie Hammond, Yvonne Johnson and Jim Westmoreland; You stole from your employees by keeping fees high

“In U.S. equity funds, the cheapest quintile had a total-return success rate of 62% compared with 48% for the second-cheapest quintile, then 39% for the middle quintile, 30% for the second-priciest quintile, and 20% for the priciest quintile. So, the cheaper the quintile, the better your chances [of outperformance]. All told, cheapest-quintile funds were 3 times as likely to succeed as the priciest quintile.”

...Morningstar research breaks out active vs. passive funds in its research, and shows that the average expense ratio for passive investments was 0.18% vs. 0.78% for active funds.

...while many have touted index funds for only their lower costs and the simplicity of buy-and-hold, the fact remains that you also make more money."

http://www.marketwatch.com/story/the-revolution-investors-have-been-fighting-for-is-here-2016-05-17
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When presented with the opportunity to do right by City of Greensboro's employees, Tony Wilkins, Marikay Abuzuaiter, Nancy Vaughan, Mike Barber, Yvonne Johnson, Jamal Fox and Sharon Hightower supported cronies connected to the financial industry, Jim Westmoreland, Mary Vigue, Rick Lusk and Connie Hammond rather than more than 2,800 employees who are still getting skimmed off of by ICMA-RC, the administrator for the City's 457 retirement plan.

http://greensboroperformingarts.blogspot.com/2015/12/why-north-carolina-treasurer-janet.html

The City of Greensboro shafted their own employees; "401(k) Fees, Already Low, Are Heading Lower"

http://greensboroperformingarts.blogspot.com/2016/05/the-city-of-greensboro-shafted-their.html

This is what winning reads like for those who oppose the status quo; City of Greensboro ICMA-RC 457 retirement plan edition

http://greensboroperformingarts.blogspot.com/2015/10/this-is-what-winning-reads-like-for.html

Say Yes to Education Red Flag; Mary Vigue; She is about to be in charge of more than $25 million for a 'non-profit' after shafting City of Greensboro employees out of investment fee cuts

http://greensboroperformingarts.blogspot.com/2015/10/say-yes-to-education-red-flag-mary.html

Associated Press misleads for Wall Street; "Correction: Primary-Council Of State story"; Don't expect the News and Record to tell anyone in print

The News and Record and other Warren Buffett owned news outlets
are going to try to take down Ron Elmers for Wall Street profit
instead of more money in North Carolina employee pockets

http://greensboroperformingarts.blogspot.com/2016/03/associated-press-misleads-for-wall.html

"Buffett’s Berkshire Hathaway boosts Wells Fargo stake to 504.3 million shares, or 10%"

Warren Buffett owns Greensboro's News and Record.

The News and Record didn't report how Clayton Homes rips off poor people.

Jeff Gauger didn't report how Wells Fargo makes money from North Carolina's retirement plans.

The News and Record didn't report how mimicking the federal government's Thrift Savings Plan could save Greensboro's employees more than $500,000 per year, to preserve Warren Buffett's profitability at the expense of their readers.

Greensboro's City Council is in on it, including Tony Wilkins, whose cowardice from the right is a complete disgrace.  They fucked their own employees with the help of Jim Westmoreland, Mary Vigue, Connie Hammond and Donnie Turlington.

Nancy Vaughan led the Council into shafting their own employees by letting the financial industry continue to grossly overcharge fees in the City's 457 ICMA-RC retirement plan.

It's inexcusable.

http://greensboroperformingarts.blogspot.com/2016/03/buffetts-berkshire-hathaway-boosts.html

The News and Record didn't report how mimicking the federal government's Thrift Savings Plan could save Greensboro's employees more than $500,000 per year, to preserve Warren Buffett's profitability at the expense of their readers.

http://greensboroperformingarts.blogspot.com/2016/04/recent-jeff-gauger-and-news-and-record.html