I'm considering enrolling in the NYSDCP and reviewed the administrative fees at: https://www.nysdcp.com/tcm/nysdcp/static/fee_transparency.pdf?r=1

I'm trying to assess whether the fee schedule is comparable with other retirement investing options. It looks quite high to me, to be charged $6 for every $1000.

Other investments I have are a Thrift Savings Plan (TSP) account from years ago and a 529 for my child. I haven't noticed any fees on these accounts.

Does NYSDCP have normal admin fees or should I put my money elsewhere?

Thank you!


0.6% annual fees is pretty frustrating especially as they aren't giving you a particularly great selection of funds. However, it is not all that far out of industry norms.

Still 457(b) plans are tax-advantaged and being tax-advantaged is a massive benefit between 5% up to even 50% or more in a high tax state like New York. If you can afford it then, I would max outside tax-advantaged accounts first which usually means around $5000 in an IRA/Roth IRA in an outside low-cost broker with low-fee funds. Usually the low cost brokers can help you set up these accounts. Afterward, you would want to put as much as you can in this higher fee but still tax-advantaged 457(b) as even though the fees are high in most circumstances the tax-advantages outweigh the fees by a large amount.

After you leave this job, you can roll-over this 457(b) into a lower fee account.

If you are in a position to complain about the fees, please do. If they hear complaints from a number of people they might move to a more reasonable provider.

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