Investment Fees and 401(k) Plans For San Diego Gas & Electric Employees

Healthcare Provider Update: San Diego Gas & Electric (SDG&E) primarily offers healthcare coverage for its employees through various health insurance providers, including major players in the market such as Anthem Blue Cross and Kaiser Permanente. These providers typically offer a range of plans that cover various medical needs, including preventive care, hospital visits, and prescription medications. As we approach 2026, significant healthcare cost increases are anticipated for SDG&E employees. With the potential expiration of enhanced federal premium subsidies under the Affordable Care Act, many policyholders may see their out-of-pocket costs skyrocketing by over 75%. Increased medical costs, driven by rising hospital and prescription drug prices, combined with aggressive rate hikes from insurers, could lead to premium increases of up to 66.4% in some states. This perfect storm of factors will pose a substantial financial challenge for workers relying on employer-sponsored healthcare plans. Click here to learn more

Apart from fees charged for administration of the plan itself, San Diego Gas & Electric employees must consider how there are three basic types of fees that may be charged in connection with investment options in a 401(k) plan. These fees, which can be referred to by different terms, including: Sales Charge, Management Fees, and Other Fees.

'Investment products that require significant management, research and monitoring services generally will have higher fees.'

Sales Charges

Also known as loads or commissions. For San Diego Gas & Electric employees, These are transaction costs for buying and selling of shares. They may be computed in different ways, depending upon the particular investment product.

Management Fees

Also known as investment advisory fees or account maintenance fees. These are ongoing charges for managing the assets of the investment fund. They are generally stated as a percentage of the amount of assets invested in the fund. Sometimes management fees may be used to cover administrative expenses. Those employed in San Diego Gas & Electric should know that the level of management fees can vary widely, depending on the investment manager and the nature of the investment product. Investment products that require significant management, research and monitoring services generally will have higher fees.

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Other Fees

This category covers services, such as record keeping, furnishing statements, toll-free telephone numbers and investment advice, involved in the day-to-day management of investment products. They may be stated either as a flat fee or as a percentage of the amount of assets invested in the fund. As a San Diego Gas & Electric employee, understanding the different types of fees and how they are applied is imperative when looking to avoid overpaying and being taken by surprise.