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Form 5500 Schedule C Resource Guide

Schedule C of the Form 5500, Annual Return/Report of Employee Benefit Plan requires detailed reporting of fees paid—directly or indirectly—to plan service providers from plan assets or participant accounts.

To assist broker-dealers, financial advisors, recordkeepers, third-party administrators (TPA’s), plan sponsors and trustees, OppenheimerFunds has prepared this Form 5500 Schedule C Resource Guide. 

The Guide generally is applicable to certain group omnibus retirement plans for which OppenheimerFunds is an investment provider, as well as certain OppenheimerFunds small business retirement plans and ERISA 403(b) plans.

As you work to complete Schedule C, use this Guide to help gather applicable information on the following:

 

Fund Information

Fund information is contained in existing fund disclosure documents, including prospectuses and shareholder annual reports. Please contact us at 1.800.835.7305 for assistance.

 

Sub TA/Recordkeeping Fees
For rates and dollar amounts applicable to your plan, please consult your plan’s

  • Service provider
  • Recordkeeper
  • TPA

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403(b) TPA Compliance Fees
For rates and/or dollar amounts applicable to your plan, please consult your plan’s 403(b) TPA.

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Networking Fees
For rates and/or dollar amounts applicable to your plan, please consult your plan’s Clearing Firm.

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Purpose of Sales Load
Sales charges (sometimes called “loads”) are fees charged to fund shareholders that are used to compensate brokers and financial advisors who act as intermediaries between the fund and its shareholders. Sales fees levied at the time shares are purchased are called front-end sales charges or loads and are stated as a percentage of the fund’s offering price (the price paid per share, including the front-end sales charge).  Sales charges assessed when shares are redeemed are generally called Contingent Deferred Sales Charges, or “CDSCs.”

A front-end sales charge or CDSC is a cost paid by fund shareholders to the fund distributor for the costs of concessions and expenses the fund distributor pays to brokers, dealers and other financial intermediaries for selling fund shares.

A schedule that contains Oppenheimer fund share class, sales commission and service fee, and CDSC information is available to financial advisors by searching "Share Class Schedule" on the OppenheimerFunds Financial Advisor website.  For actual dollar amounts applicable to your plan, please consult your plan’s financial advisor.

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Purpose of Service Provided for Distribution and Service (12b-1) Fees
Each Oppenheimer fund has adopted a Service Plan for Class A fund shares that reimburses or compensates the fund distributor for a portion of the costs associated with maintaining fund accounts and providing services to Class A fund shareholders.

Each Oppenheimer fund also has adopted Distribution and Service Plans for Class B, Class C and Class N shares to pay the fund distributor for costs associated with distributing those share classes, maintaining accounts and providing shareholder services.  These fees compensate or reimburse the fund distributor for payments made to broker-dealers that sell these fund share classes.

A schedule that reflects payment of the Distribution and Service (12b-1) fees applicable to the Oppenheimer funds is available to financial advisors by searching "Share Class Schedule" on the OppenheimerFunds Financial Advisor website.  For actual dollar amounts applicable to your plan, please consult your plan’s financial advisor.

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Fund Share Classes, Commissions and Service Fees, and CDSC
A schedule that contains Oppenheimer fund share class, sales commission and service fee, and CDSC information is available to financial advisors by searching "Share Class Schedule" on the OppenheimerFunds Financial Advisor website.  For actual dollar amounts applicable to your plan, please consult your plan’s financial advisor.

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Investment Management Fees
Under the investment advisory agreement for each Oppenheimer fund, the applicable fund pays OppenheimerFunds, Inc., the fund’s investment manager (“Manager”), a management fee, calculated on daily net assets of the fund, at an annual rate set forth in the “Annual Fund Operating Expenses” table in the fund prospectus.  The investment management fee applies to all fund assets, including assets of the plan invested in the fund.

 

Revenue Sharing and Firm Support for Distribution Activity
For information applicable to your plan, please consult your financial advisor.

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Annual Trustee Fees
For small business plans trusteed by OFI Global Trust Company, refer to the annual maintenance fee on either the plan year end statement or each participant’s year end statement.

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Gifts, Entertainment and Other Non-Monetary Compensation
Some firms may, in their sole discretion, report on Schedule C non-monetary compensation received with respect to a particular plan.  OppenheimerFunds will, upon request, provide a report to the applicable firm identifying the gift, entertainment and other non-monetary compensation furnished to the plan’s financial advisor or other representative affiliated with that firm. 

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Soft Dollars
The investment advisory agreement for each applicable Oppenheimer fund permits OppenheimerFunds, Inc., the fund’s investment manager (“Manager”) to allocate fund assets toward research services.  The research services provided by a particular broker may be useful both to the fund and to one or more of the other accounts advised by the Manager or its affiliates.  Investment research may be supplied to the Manager by the broker or by a third party at the request of a broker through which investment trades are placed.

Investment research services include information and analysis on particular companies and industries as well as market or economic trends and portfolio strategy, market quotations for portfolio evaluations, analytical software and similar products and services.  If a research service also assists the Manager in a non‑research capacity (such as bookkeeping or other administrative functions), then only the percentage or component that provides assistance to the Manager in the investment decision‑making process may be paid in commission dollars.

Although the Manager currently does not do so, the Board of Directors or Trustees of a fund (“Board”) may permit the Manager to use stated commissions on secondary fixed-income agency trades to obtain research if the broker represents to the Manager that: (i) the trade is not from or for the broker's own inventory, (ii) the trade was executed by the broker on an agency basis at the stated commission, and (iii) the trade is not a riskless principal transaction.  The Board may also permit the Manager to use commissions on fixed-price offerings to obtain research, in the same manner as is permitted for agency transactions.

The research services provided by brokers broaden the scope and supplement the research activities of the Manager.  That research provides additional views and comparisons for consideration, and helps the Manager to obtain market information for the valuation of securities that are either held in the Fund's portfolio or are being considered for purchase.  The Manager provides information to the Board about the commissions paid to brokers furnishing such services, together with the Manager's representation that the amount of such commissions was reasonably related to the value or benefit of such services.

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For Form 5500 Schedule C questions or requests for information, please call OppenheimerFunds Group Retirement Plans at 1.800.835.7305.

Please see the Department of Labor website for more information.

 

 

This material does not supplement or modify the prospectus, Statement of Additional Information, or annual report for any applicable Oppenheimer fund.  In the event of any inconsistency between the aforementioned disclosure documents and information contained in this document, the applicable disclosure documents shall govern. 

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Shares of Oppenheimer funds are not deposits or obligations of any bank, are not guaranteed by any bank, are not insured by the FDIC or any other agency, and involve investment risks, including the possible loss of the principal amount invested.

Before investing in any of the Oppenheimer funds, investors should carefully consider a fund's investment objectives, risks, charges and expenses. Fund prospectuses and summary prospectuses contain this and other information about the funds, and may be obtained by asking your financial advisor, visiting oppenheimerfunds.com, or calling 1.800.CALL OPP (225.5677). Read prospectuses and summary prospectuses carefully before investing.

Oppenheimer funds are distributed by OppenheimerFunds Distributor, Inc.
Two World Financial Center, 225 Liberty Street, New York, NY 10281-1008