One of your most important tasks at the end of this year is to ensure your payroll dates are correct in ERM. You must have correct payroll dates in ERM for you to transact with INPRS in 2023. Please make the time to accomplish this task before the end of 2022. If you need help updating your payroll dates, please contact the Employer Advocate Team.
Understanding the fees you and your employees pay as an INPRS member
While no one likes to pay fees, it’s important to understand what fees you are paying and why. When you and your employees review your statement, take note of the administrative and investment fees INPRS is required to add. We’re committed to only assessing the fees that are necessary for taking care of your account.
Below, we sum up what you need to know about the two types of fees INPRS members pay, administrative fees and investment fees (also referred to as expense ratios):
ADMINISTRATIVE FEES
- PERF, TRF, and LE DC plan members pay: administrative fees to cover the costs associated with managing their defined contribution (DC) accounts.
- Administrative fees are $3.75 deducted directly from members’ DC account each month, for an annual charge of $45. This deduction is noted on your quarterly member statement. PERF and TRF Hybrid members will find the fee noted on their annual member statement
- INPRS’s member fee policy outlines the method used to determine administrative fees. You can find the fee policy online at https://bit.ly/DCAdministrativeFeePolicy.
EXPENSE RATIOS / INVESTMENT FEES
- INPRS Defined Contribution (DC) Plan investment options each carry an “expense ratio.” An expense ratio measures how much you’ll pay over the course of a year to own an investment option. An expense ratio is expressed as a percentage for each investment option.
- When you view your DC account, your online statement will show how much money you gained or lost, known as net of fees. All expenses are deducted from your investment option(s) before showing how much you gained or lost.
- You will find that the expense ratios associated with INPRS are typically lower than retail investment offerings. For example, an INPRS member working for ten years starting at age 30 could have over $10,000 more in their DC account upon retirement than a retail investor with higher fees on the same investment amount and length of time. *
- Click here for further details on Expense Ratios and to view the Fee table.
You can use the below equation to figure how many dollars you’re paying annually in fees:
Amount Invested (dollars) x Expense Ratio (%) = Fee
For example: if you have $10,000 in a fund with an expense ratio of 0.12%, you’ll pay $12 per year in fees.
You and your employees can learn your investment options and their associated expense ratios by logging into your secure online account at www.myINPRSretirement.org.
* The above example assumes a $1,000 annual investment for 10 years at year-end, starting at age 30 and investing until age 65. Both scenarios assume an 8.00% gross return with an INPRS return of 7.90% net-of-fees and a competition return of 7.53% net-of-fees. The rate of return is an assumption and is not a guarantee of performance.
Reminders!
- Getting ready to head out for the upcoming holidays? Before you go, be sure to submit your payroll to INPRS. Staying on schedule will reduce your pre-vacation stress and eliminates a to-do item for your first day back in the office.
- It’s very important to keep us up-to-date whenever an employee leaves their position. You can easily report any separations from employment by updating the employee’s last day in pay and last check date in ERM.