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MTA PROGRAM NEWS: OCTOBER 2022
A Change to the way fees are assessed.
Beginning in the 3rd Quarter, the MTA Deferred Compensation Plan will change the ways fees are assessed. The administrative fee you pay each calendar quarter is .025% of your total account balances up to $100,000 (the sum of your 401(k) Plan account and 457 Plan account balances, limited to $100,000 and then multiplied by .025%). The fee amount is not changing, only the way it is deducted from your plan accounts is.
Currently, the fee calculated as described above is deducted from your 401(k) Plan account first and your 457 Plan account second. This means that if your 401(k) Plan account balance is over $100,000, the entire $25.00 fee will be deducted from your 401(k) Plan account and there will be no fee deducted from your 457 Plan account.
In the future, the total fee calculated as described above will be deducted on a pro-rata basis from your Plan accounts. This means that even if your 401(k) Plan account balance is over $100,000 you will only see a portion of the total fee deducted from your 401(k) Plan account. The remaining fee will be deducted from your 457 Plan account. The amount deducted from each Plan account will be determined by calculating the ratio of each Plan account balance to the total balance in both plans (pro-rata).

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