Fee Information for Purdue Defined Contribution Plans
The Retirement Plan Committee meets regularly to review and monitor costs associated with the plan.
Some fees and expenses are associated with the administration of the plan, while others are connected to investment options you’ve chosen or specific services that you have requested. Higher fees are not necessarily bad, and lower fees are not necessarily good; it’s important to consider the balance between what is paid and the service, support and performance you receive in return.
Purdue University is considered a governmental entity and not subject to ERISA. The types of fees associated with your workplace retirement savings plans are explained below.
Plan Administrative Fees
What: Charges for recordkeeping, accounting, legal and other administrative work.
How: A quarterly administrative fee of $15.25 or $61 annually is deducted from your account. Even if you participate in more than one university sponsored plan where Fidelity serves as recordkeeper, just one flat administrative fee is charged per quarter. You can see this fee listed on your account statement.
Asset Based Fees
What: Expenses related to managing and operating specific funds or investment vehicles.
How: These fees are passed along to you in the form of a charge that impacts your investment returns. You won’t see them itemized on your account statement, but the expense ratio is displayed for each investment option in NetBenefits. You can see and compare the investment fees of each fund available in the fund lineup.
Individual Service Fees
What: In some cases, participants are responsible for service fees related to specific transactions.
How: If you request any of the specified services listed below, the fee will be deducted from your account balance and will be viewable on your quarterly statement.
| Transaction | Fee | 403B Base | 401a Mandatory | 403b Voluntary | 457b Voluntary |
| In-service Withdrawal (VEPR, ARD or RIF) |
$25 | Y | Y | Y | Y |
| Minimum Required Distribution | $25 | Y | Y | Y | Y |
| Qualified Domestic Relations Order | $200 | Y | Y | Y | Y |
| Loan Setup | $50 | N/A | N/A | Y | N/A |
| Loan Maintenance - quarterly | $6.25 | N/A | N/A | Y | N/A |
Redemption Fees
What: Some funds impose short-term redemption fees to lessen the adverse impact caused by short-term trading. These fees are typically charged when shares, held for less than the holding period specified in the fund prospectus, are redeemed. Certain types of transactions are exempt from these fees; see the prospectus.
How: The fees, which are calculated as a percentage of the transaction amount and are generally net from the redemption proceeds, are paid directly to the company managing the fund.