Coming soon to the Texa$aver program: flat fee structure, new investment option

April 07, 2021

Changes are coming to the Texa$averSM 401(k) / 457 Program. Starting May 1, the program’s administrative fee structure will change to a flat fee. This means every participant will pay one fixed dollar amount each month to participate in the Texa$aver program, instead of the tiered fee structure that changed based on your account balance. For many, this change could result in a significant reduction in the total fees you pay each month, which lets more of every dollar you contribute stay in your account to help you save for retirement. 

The administrative fee:

  • covers the cost of program recordkeeping and other services and
  • is charged monthly per participant, per account.

New, simplified fee structure

You do not need to do anything–you’ll have the same Texa$aver program, now with a more straightforward approach to fees. The new fee structure goes into effect May 1. You will see it on your second quarter statement (April through June) with the June 2021 monthly fee. The table below shows the new fee structure:  

NEW MONTHLY
ADMINSTRATIVE FEE
(Per Participant, Per Account)
Previous Monthly
Administrative Fee
(Per Participant, Per Account)
Account Balance
  $0.60 $1,000 or less
  $2.05 $1,000.01 to $16,000
$1.50 for all participants,
regardless of account balance
$3.08 $16,000.01 to $32,000
  $4.19 $32,000.01 to $48,000
  $5.58 $48,000.01 to $64,000
  $6.99 $64,000.01 or more
 

New investment option 

Also on May 1, ERS is adding a new investment option to the Texa$aver program’s core lineup, the Fidelity International Index Fund (FSPSX).

What the new investment option means for you

You do not need to take any action as a result of this fund change. ERS is adding the new fund to the lineup as an additional option only. However, if you choose to transfer all or a portion of your investments to the new fund, you may do so on May 1, when the fund becomes available to Texa$aver accountholders. 
To transfer your investments to the new fund, do one of the following:

- or -

 
  • Contact a Texa$aver representative at (800) 634-5091 (TTY: (877) 606-4790) between 7 a.m. and 9 p.m. CT any business day or Saturdays between 8 a.m. and 4:30 p.m. CT.

Remember to consider the investment objectives, risks, fees and expenses carefully before investing. You can get this and other important information, such as mutual fund prospectuses for registered investment options and/or disclosure documents, on the Texa$aver website under the Investing tab or by calling (800) 634-5091 to request it from Texa$aver representative. Read these materials carefully before investing.