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Retirement Plan Costs

Kentucky Deferred Comp (KDC) is required by Kentucky law to pay all costs associated with the plans. The Board of Trustees (the Board) collects these costs by charging participants based on their account balance.

Fixed Contract Fund 3 account cost

If you allocate money to the Fixed Contract Fund 3, you’ll be assessed this cost. It is charged annually and is made up of two parts:

  • A flat charge of 0.32% of account balance for annual recordkeeping and administrative costs 
  • A charge of 0.36% of account balance to pay for fund management fees, including wrap fees

The credited interest rate reported on your quarterly statement is already adjusted for these costs.

Mutual fund account cost

If you allocate money into one or more mutual funds, you will pay this cost. Participants don’t have to pay mutual fund recordkeeping and administrative costs until one year after the date of their first investment. Underlying fund management fees will still apply.

Beginning one year after the date of your first deferral, you will pay an annual recordkeeping and administrative cost based on the first $125,000 of your total balance in all mutual funds. This cost will be split over twelve months.

The mutual fund account cost is calculated as follows:

0.32% of the first $25,000
0.26% of the next $25,000
0.13% on the next $50,000
0.06%$ on the next $25,000
No charge on amounts over $125,000

The most you will pay in annual mutual fund account costs is $225.

In Return For Your Fees

KDC and Nationwide® provide the following services:

  • Online services – Online fund exchanges, allocation changes and deferral changes. 
  • Automated voice response unit – 24-hour telephone access for fund changes and allocation changes. 
  • Individual customer service – Customer Service Representatives and Plan Service Representatives are available to help Monday – Friday, 8 a.m. – 5 p.m. ET. 
  • Seminars – KDC financial, orientation, life planning, pre-retirement and investment options sessions are available. Contact us for details. 
  • One-on-one advising – Contact us to set up an appointment with a KDC Local Plan Service Representative. Information received from Plan Service Representatives is for educational use only and should not be considered investment advice.
NRW-3042KY-KY
NRW-3042KY-KY
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