In my opinion, if federal workers are still working for the government, have no plan of investing other options and are in no need to withdrawal, then low-fee retirement plans cost less than IRAs in terms of playing fees.
IRAs, on the other hand, may charge ten times more fees than low-fee retirement plans for federal workers.
Yes, federal workers will pay more in the way of fees when they switch from low-fee retirement plans to IRA because there are big differences in the way the fees are calculated. The difference between the two retirement plans' fees are great. According to Melanie Hickman at MoneyCNN.com's article,"Federal workers lose big by pulling out of low-cost retirement plans", the fees of an IRA plan would cost workers 10 times more than the low fee accounts. This fee would be based on their account balances which would definitely affect the employees' retirement nest egg.
Yes, federal workers end up paying more by way of fees when they switch from low-free retirement plans to IRAS. Although when jumping to a plan with a higher cost, it is easily understood that the end result would be different. These workers are looking for a better way to save their money. It is not something someone would typically avoid. They are spending more but, they are also getting a better end result.
Many federal workers have encountered thousands of dollars in fees after pulling their money out from low-fee retirement plans and investing them in IRAs. These workers are losing money that they have saved and invested, and need to be given better options for saving their money that will not cause them to lose money instead.