NOTICE TO ALL POOLED TRUST PARTICIPANTS:
Pursuant to sections 4.3 and 4.4 of the Master Trust Agreement dated July 20, 1999, The Arc Oregon has appointed Key Bank National Association as the new Trustee of the Oregon Special Needs Trust. The Master Trust Agreement has been amended and dated November 25, 2015. The Joinder Agreement has been amended to reflect the new Trustee and Master Trust Agreement. All changes to the Joinder Agreement apply to all current pooled trust participants and all previously executed Joinder Agreements are immediately deemed to be amended accordingly. You are encouraged to review the new Joinder Agreement documents posted on the Forms and Documents page of The Arc Oregon website. Upon your annual review date, you will receive an Updated Joinder Agreement and will be required to sign and return the document when requested. Please do not hesitate to contact our office if you have any questions!
The Arc Oregon is a non-profit organization and the OSNT program is offered as a service, not as a fundraiser. With that in mind, we strive to set our fees so that the interest, dividends and earnings from the trust’s pooled investments will cover the cost of the fees applied to each sub-trust account without having to access the principal of the account to maintain the account.
Any funds remaining after meeting the administrative needs of the program are used to provide additional programs and services that further support and advance the mission and goals of The Arc Oregon.
Fees are evaluated annually by the OSNT Program Director and any recommended changes are reviewed for approval by the Board of Directors. On July 15, 2015, the Board approved a slight restructuring of the fee schedule that resulted in a reduction in the Annual Renewal Fee for the majority of account holders.
Less than $5,000
$200,000 and over
UNION BANK FEES (through 12/31/2015)
Non-Highmark Funds are charged:
1.35% on the first $2M, .90% on the next $3M, .60% on all assets over $5M
Assets investing in Highmark Funds are charged:
.80% on the first $2M, .55% on the next $3M, .35% on all assets over $5M
KEY BANK FEES (as of 1/1/2016)
.95% on the first $1,000,000
.75% on the next $2,000,000
.55% on the next $2,000,000
.45% on assets over $5,000,000
** All existing accounts will be charged $100 in January 2016 to cover the preparation of 2015 tax documents. The Tax Preparation Fee will be then be reduced to $1 per month.
This is a one-time cost of opening the sub-trust account and establishing a detailed beneficiary profile that will guide us in managing the sub-trust account in the best interest of each beneficiary based on their specific situation and needs. If more than one account is established for a beneficiary (such as a 1st party and a 3rd party account), the second enrollment fee is reduced by 50%. The enrollment fee is due when an enrollment application (Joinder Agreement) is submitted. For accounts being immediately funded, the fee may be deducted from the sub-trust account once it is established, but then the initial funding check must be submitted along with the enrollment packet.
The Administration Fee is an annual fee that is prorated and applied to sub-trust accounts on a monthly basis. This fee covers the cost of managing the sub-trust account, which includes receiving and reviewing disbursement requests, processing disbursement checks and deposits, maintaining accurate accounting of sub-trust accounts, mailing quarterly account statements, ensuring compliance with state and federal rules and regulations, and serving as a resource to beneficiaries and their advisers regarding the trust.
BANK/INVESTMENT MANAGEMENT FEE
Key Bank charges this fee on an annual basis (applied quarterly) for managing the investments in the trust. This fee is calculated based on the sub-trust account balance at the end of each calendar month. Based on the sliding fee scale noted above, as the total pool increases, the fees charged to each sub-trust account decrease.
ANNUAL RENEWAL FEE
The annual renewal fee is based on the balance in the sub-trust account as of December 31st of each year as shown above. This flat fee covers the cost of annual reconciliation and reporting as well as all annual account reviews and renewal.Annual renewal fees for unfunded or zero-balance donor accounts will remain the same until the account is funded. Your rate will not change even if there is an overall rate increase on OSNT fees.
STOP CHECK FEE
This fee will be assessed for any disbursement check that is lost or stolen, requiring that a stop payment be placed on the check. Checks that will not be used should be marked “Void” and returned to the OSNT office to avoid the need for a stop payment.
TAX PREPARATION FEE
Through the 2015 tax year, this is the amount negotiated with our contracted CPA to prepare individual sub-trust account year-end tax documents, and is deducted annually. Beginning with the 2016 tax year, this fee is paid directly to Key Bank and will be deducted monthly.
Upon the death of the beneficiary or depletion or transfer of the trust sub-trust account, a closing fee will be assessed prior to distributing the remainder of the funds.