Investment Fees for 403(b) Plans To Be Communicated To Faculty, Staff

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Over time, fees can impact the amount of overall savings in your retirement plan. Duke will be distributing information annually to provide faculty and staff information about the fees for the investment options in its 403(b) retirement plans. (Source: D

As part of new federal regulations, Duke will be sending out detailed information next week about fees associated with the investment options available through its 403(b) retirement plans.

The notification is part of new federal regulations that require fees for investment options to be communicated annually to help ensure transparency and enable participants to consider the impact of fees when making investment decisions.

"Fees should be taken into consideration along with a fund's past performance, an individual's personal risk tolerance and the amount of time someone has until retirement when making investment decisions," said Kyle Cavanaugh, vice president for administration. "This process will make it easier for people to find and use that information."

Duke has four retirement plan vendors and hundreds of investment options available through these vendors. Fees vary based on investment option and can impact savings over time. Fees are typically paid through what is known as expense ratios and are used to cover the costs for fund managers, accounting, recordkeeping, advertising and participant communications, among other things.

Next week, Duke will send out an email to current faculty and salaried staff with information about investment performance and all the services and fees associated with the investment options available through the 403(b) retirement plans. Hourly-paid staff, retirees and other participants in Duke’s 403(b) retirement plans will receive a booklet in the mail with the same information.

Additional information, reports and tools will be available on the Duke Retirement Manager website. The information on the website will be updated quarterly.

Participants will also be able to find fees for their investments included on the quarterly account statements from each investment carrier. The section entitled, "Your Fee Summary," will provide a detailed breakdown of the specific fees charged to a participant's account for the quarter or statement period.

For more information, contact the Duke Benefits Office at (919) 684-5600 or by email at benefits@duke.edu.