Lower Wrap Fees With Managed
Account Option
Mutual of Omaha recently announced pricing changes that will result in lower wrap fees for plans that select the Stadion managed account option as their Qualified Default Investment Alternative (QDIA). These changes will eliminate the wrap fee for any plan with $1 million or more in transferred assets.*
More Flexibility Available for Trail Commissions
The new pricing structure eliminates issues with broker-dealers regarding solicitor compensation paid by Stadion, which no longer will be offered after December 1, 2009. In lieu of the Stadion compensation, Mutual of Omaha will offer brokers more flexibility to increase trail commission as a result of the 15-20 basis point decrease in wrap fees. (Existing Stadion plans will be "grandfathered" and if applicable, solicitor compensation still will be paid on those plans.)
QDIAs Offer Fiduciary Protection
The Stadion managed account option qualifies as a QDIA, which enables Stadion to provide the highest level of fiduciary protection available under ERISA.** Stadion's unique approach to managing individual accounts protects assets by reducing equity exposure during declining markets. This means that the investment decision responsibility rests with Stadion's team of financial professionals.
For more information about the Stadion managed account option available in Mutual of Omaha’s retirement products, view the attached product flyer.
* Stadion's account management fees will remain unchanged at 0.75% for QDIA. Commission charges still apply.
** Not available with all plans.
