HR Director Proposes Moving Employees to State 457(b) Plan to Cut Fees

Carroll County’s HR director told commissioners on Feb. 20 that the county is already part of the state 457(b) deferred-compensation plan and that plan’s lower fees could increase employees' investment returns compared with the county’s existing Nationwide plan.

Director Matchett said documentation signed years ago shows Carroll County is eligible for the state plan and that fees charged by Empower for the state-run 457(b) are significantly lower than the fees employees pay in the Nationwide accounts. To reduce administrative burden and avoid managing two plans, Matchett asked for permission to map current Nationwide participants (10 employees) into comparable options in the state plan and then, after notifying them, mandate the move so only one plan is managed. Commissioners asked that staff first consult enrolled employees and present comparative returns so members can decide or register objections before any mandatory action.

What happens next: Matchett agreed to reach out to the 10 enrolled employees, gather performance/fee comparisons between Nationwide and the state plan, and report back at the next meeting so commissioners can decide whether to proceed.