DCP and Plan 3 investment fees lowered
Effective July 1, 2022, the administrative and investment management fees the Washington State Investment Board (WSIB) charges to DCP and Plan 3 accounts decreased from 0.0215% to 0.0180%.
Although the WSIB’s operating costs are expected to increase in the coming fiscal year, the increase in assets under management allows these costs to be spread across a larger pool of funds, resulting in the decrease in fees.
The administrative fee charged by DRS to DCP accounts will decrease from 0.0473% to 0.0420%. This reduction also takes advantage of the increase in DCP assets.
The total fee percentage for your plan varies by the fund(s) you have selected. View total fees in the Investment fee tables on your plan page.
The two costs associated with investments
All investments include costs, which take the form of fees. At just a fraction of a percent, most investment fees seem pretty insignificant and many of us ignore them. But knowing the true cost of your investments is a critical part of retirement savings. Let’s take a closer look at investment costs. We have two types of cost, administrative and management.
Administrative costs: These cover investment services provided by the WSIB, recordkeeping, communications and customer service. For DCP, these fees are listed on your quarterly statement under “Expenses.” Administrative costs apply to all customers, are based on the administrative costs of the program and are determined annually. Any changes usually go into effect in July.
Management costs: Funds are managed by teams of investment professionals and the costs vary with each investment option. Management costs are included in the price of shares and won’t be visible on your statement.