Frequently Asked Questions
The purpose of the following FAQ is to help guide your data submission process. Should you require further clarification, please do not hesitate to contact us.
1. What is the difference between External, Internal, and Absorbed Expenses?
External expenses refer to fees paid to an external provider.
Internal expenses refer to fees incurred by the plan sponsor and are charged to the fund.
Absorbed expenses refer to fees that are subsidized by the plan sponsor and are not directly charged to the fund.
2. What type of expenses should be included in the each category?
|Pension Plan Consulting||Includes plan design, communications consulting, valuations.|
|Record keeping, administration and member service||Includes communications to members, rent, systems costs.|
|Asset Consulting||Fees related to asset allocation modelling and Investment Manager search or evaluation|
|Investment Management||Fees paid to select appropriate investments.|
|Brokerage Fees||Fees to process the purchase and sale of securities.|
|Custody||Fees for safe guarding assets including registering and transfering title.|
|Audit||Fees to provide audited financial statements|
|Legal||Fees to lawyers and fees paid to regulatory institutions.|
|Governance||Expenses to support effective governance of the plan such as meetings, educational conferences, trustee allowances, etc as well as fiduciary liability insurance costs.|
*Please note, pension payments, refunds, and transfers are not considered expense fees and should be excluded from your submission.
3. Our pension plan is handled by an insurance company and all the expenses are combined in the Investment Management Fees charged to the member accounts. How do we extract our expense categories?
Contact the insurance company or your insurance advisor for a description of fees including investment fund management fees and operating expenses.
Download a copy of the questionnaire.