CRA plan fees for 2020

There are two primary categories of costs associated with operating any retirement plan: investment fees and administrative fees.

Investment fees are generally the largest component of plan expense. These typically include transaction costs for buying and selling shares and underlying holdings, investor and account maintenance, and related costs associated with day-to-day management of each fund.

Investment fees are often stated as a percentage of the plan assets that are invested in the fund and are netted from each fund’s underlying market return.

Depending on the fund selected, CRA plan investment fees currently range from 0.02% to 0.96% — but note that these may vary over time. 

Administrative fees encompass a wider breadth of plan services and features inherent to the day-to-day operation of the plan. These include transactional activity and account administration, plan advisory services, audit and other regulatory expenses, as well as plan features and tools.

Each of these fee types call for continual monitoring and adjustment to ensure that the plans we offer and administer provide valuable servicing at a reasonable cost.

To that end, CRA’s Board of Directors has set administrative fees for our plans at 0.25% of account value.  There is a $28 minimum fee and a fee cap (the maximum amount considered as a basis for fees, as adjusted for 2020) set to $400,000 per employee participant. While the fee cap for 2020 reflects a change from prior years, the adjusted rate remains highly competitive as compared to other similar retirement plans available in the market. In fact, most other plans have no fee cap.

These fees do not cover additional ancillary costs incurred by plan participants, such as distribution fees, self-directed brokerage accounts, Empower Advisory Services, etc. 

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CRA Coronavirus Update

Following are updates on our operations for the foreseeable future until concerns about the spread of COVID-19 have subsided.

  • Calls/Emails – Our call center will follow standard business hours, and calls into CRA offices will continue to be answered.
  • In-person Meetings – To protect you and our staff, in-person meetings with our client services team will be suspended for the foreseeable future. This also includes in-person visits to our offices in Littleton. However, our staff is available to meet with you via web conference.
  • Group meetings – Our client services team has been contacting member employers to reschedule or postpone group meetings that were scheduled for the coming weeks.

Additionally, we wanted to assure you that CRA, along with our investment advisor and recordkeeper, remain steadfast in closely monitoring the markets and executing our fiduciary responsibilities for your retirement savings.

We recognize that recent market volatility may raise concerns. Drawdowns are part and parcel with financial markets, and the markets have weathered similar storms before. As always, it is important to take a long-term view of retirement savings and have diversified portfolios. CRA target date portfolios are designed to be appropriately diversified for a participant’s anticipated retirement year. Employee participants are always welcome to make changes to their investments by logging into their accounts via cra-online.org or by calling 800.352.0313.

*CRA is not an investment advisor and does not make any representations nor guarantees as to the future performance, risk or return of the funds. This plan and its self-direction provisions are intended to constitute a plan similar to that described in section 404(c) of the Employee Retirement Income Security Act and Title 29 of the Code of Federal Regulations Section 2550.404c-1. The fiduciaries of this plan may be relieved of liability for any losses which are the direct and necessary result of investment information given to the employee.

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