CoreBridge adviser outlines State of Iowa 457(b) plan to Carroll County board, cites large fee savings for employees
March 31, 2026 | Carroll County, Iowa
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Sean Monahan, a portfolio‑licensed financial adviser with CoreBridge Financial, briefed Carroll County supervisors on the State of Iowa 457(b) retirement plan as an option to replace the county’s annuity‑based standalone plan.
Monahan told the board the county’s current 2060 target‑date fund carries an all‑in cost of about 1.89%, whereas the state’s comparable 2060 target‑date fund is 0.22% all‑in. Using an example for a hypothetical 25‑year‑old contributing $300 per month at an assumed 8% annual return, Monahan said the lower‑fee structure lifts a projected account balance from roughly $350,000 under the higher‑fee county plan to just shy of $998,000 under the state plan. He also said the state plan offers administrative benefits and periodic competitive rebids that have driven fees down.
Board members asked practical and employee‑impact questions. Monahan confirmed employees may choose whether to roll existing assets into the new plan and noted a county could not maintain active payroll contributions into both plans simultaneously. He identified a small employer startup fee ($100–$400, one‑time) and an annual administrative fee ($50–$500) and said these would be single employer‑level costs, not per employee. Monahan emphasized the 0.22% fee is a product of the current state contract and could change if the state rebids services, but he said broad fee trends have trended downward.
Supervisors discussed arranging informational sessions for currently participating employees and one‑on‑one meetings; several members said they expected to seek employee input before authorizing any structural change. No formal action was taken during the meeting.
Monahan told the board the county’s current 2060 target‑date fund carries an all‑in cost of about 1.89%, whereas the state’s comparable 2060 target‑date fund is 0.22% all‑in. Using an example for a hypothetical 25‑year‑old contributing $300 per month at an assumed 8% annual return, Monahan said the lower‑fee structure lifts a projected account balance from roughly $350,000 under the higher‑fee county plan to just shy of $998,000 under the state plan. He also said the state plan offers administrative benefits and periodic competitive rebids that have driven fees down.
Board members asked practical and employee‑impact questions. Monahan confirmed employees may choose whether to roll existing assets into the new plan and noted a county could not maintain active payroll contributions into both plans simultaneously. He identified a small employer startup fee ($100–$400, one‑time) and an annual administrative fee ($50–$500) and said these would be single employer‑level costs, not per employee. Monahan emphasized the 0.22% fee is a product of the current state contract and could change if the state rebids services, but he said broad fee trends have trended downward.
Supervisors discussed arranging informational sessions for currently participating employees and one‑on‑one meetings; several members said they expected to seek employee input before authorizing any structural change. No formal action was taken during the meeting.
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