FYI: ( Its been a while since I've link an article by Kathleen Pender. In the Linkster's opinion, she is one of the best financial writer in the U.S.)
The staff developing CalSavers, a controversial state-run retirement program for private-sector workers in California, will recommend that Ascensus administer the plan and State Street Global Advisors manage the investments.
These firms were selected from 13 that submitted proposals. The board overseeing the program will vote on the staff’s recommendations at a meeting on Thursday, paving the way for a pilot program to start near year’s end.
State Street would offer four investment options: a money market fund, bond index fund, global stock index fund and target date fund. Its management fee on those funds would range from 0.025 percent of assets on the bond fund to 0.12 percent of assets on the money market fund.
The first $1,000 of each employee’s assets would go automatically into the money market fund, unless the worker chose a different option.
Add it up, and in the first year an employee who stayed in the money market fund would pay almost 1 percent in annual fees.
Regards,
Ted
https://www.sfchronicle.com/business/networth/article/State-on-verge-of-hiring-two-firms-to-manage-13156664.php
