Texa$aver participants to pay lower fees

Texa$aver participants to pay lower fees

July 3, 2019
Participants in the Texa$aver 401(k) / 457 Program are paying almost 40% less for the monthly administrative fee beginning in June.  The reduced lower monthly administrative fee will be applied to accounts starting in early July.  A schedule of the new reduced monthly fees is shown below. 
 
ERS works with the Texa$aver third-party administrator to keep fees low,” says Diana Kongevick, ERS Director of Group Benefits. “We recently entered into a new contract with Empower Retirement to continue managing the program, and the reduced fees are a direct result of that new contract. We are delighted to pass the administrative savings on to our members to help them save even more toward a financially secure retirement.”  

Texa$aver 401(k) / 457 Program Administrative Fees

Account Balance New Monthly Fee
(Per Participant, Per Account)
Old Monthly Fee
(Per Participant, Per Account)
$1,000.00 or less $0.71 $1.18
between $1,000.01 to $16,000.00 $2.41 $3.99
between $16,000.01 to $32,000.00 $3.62 $6.00
between $32,000.01 to $48,000.00 $4.93 $8.17
between $48,000.01 to $64,000.00 $6.57 $10.89
$64,000.01 or more $8.22 $13.62
The monthly administrative fee is shown on the participant’s account statement under “What activity took place this period/Expenses/Account Admin Fee” or simply look online under the Transaction history link.  The administrative fee covers recordkeeping expenses and other program costs for the previous month.

The Texa$aver program is funded entirely by participants and the program gets no state funds. ERS oversees the program and uses the services of a third-party administrator (TPA), currently Empower Retirement, to help manage the program.  The agency uses a competitive bid process to seek qualified TPA services offering the best value and high-quality service for participants, ERS and the State of Texas.

Other recent Texa$aver fee changes

Beginning May 1, 2019, fees for newTexa$aver accounts are waived for six months. At the end of the waiver period, participants will pay the monthly fee based on the account balance.

Also beginning in May, low balance accounts (those with balances of $10.00 or less), which were previously exempt from fees, are assessed the monthly administrative fee. Charging all Texa$aver accounts a monthly administrative fee helps ensure program costs are shared equitably.

Note: If an account balance reaches $0.00, the account is closed.

Learn how Texa$aver supports a stronger future

The Texa$aver program helps employees at state agencies and some higher education institutions build their retirement savings by contributing to a 401(k) and/or 457 plan. It’s one “leg” of the three-legged stool of savings that can lead to a financially secure retirement for state agency employees. The three legs are:
  • State of Texas Retirement (your ERS pension plan),
  • Social Security and
  • personal retirement savings, such as  a Texa$aver account.

Plus, if you enroll in a tax-deferred account, you’ll lower your taxable income and pay less to the Internal Revenue Service Employees hired on or after September 1, 2008 are automatically enrolled in a Texa$aver 401(k) plan. Those not automatically enrolled or those who previously opted out of the plan can open a Texa$aver account at any time. Once enrolled, participants can change their contributions or investments at any time and take advantage of free online planning tools and personalized savings recommendations.

 For more information, view Texa$aver 401(k) / 457 Program for Active Employees or Texa$aver 401(k) / 457 Program for Retirees. You can also contact a Texa$aver customer service representative by emailing texasaver@empower-retirement.com or by calling (800) 634-5091, Monday through Friday, 7 a.m. to 9 p.m. CT and Saturday, 8 a.m. to 4:30 p.m. CT.

This material has been prepared for informational and educational purposes only and is not intended to provide investment, legal or tax advice.