Oakland County retirement board to decide on Fidelity hire
By Christine Williamson | August 8, 2012 3:09 pm
Oakland County Retirement and Deferred Compensation Board, Waterford, Mich., on Aug. 23 will consider its investment subcommittee's recommendation to hire Fidelity Investments as bundled provider for its $327 million 401(a) plan and $189 million 457 plan.
Fidelity already handles the 457 plan; ICMA-RC is the 401(a) plan's bundled provider.
Three other finalists — Great-West Retirement Services, TIAA-CREF and ICMA-RC — also gave presentations to the investment subcommittee at its July 6 meeting, according to minutes from that meeting.
Fidelity's hiring requires board approval, said Paige Ritchie, retirement specialist who oversees the county's defined contribution plans, in an interview.
Laurie VanPelt, county director of management and budget, expressed concern at the July 26 board meeting about “potentially increasing the risk of the plan by relying on just one record keeper and concern regarding the lack of notice to employees about the possible change in record keepers before a vote is taken,” according to minutes of the board meeting. The full board voted to postpone the hiring decision until Aug. 23.
Should the board approve Fidelity's hire, it will be contingent on successful fee-concession negotiations and assurance that Fidelity also can administer Oakland County's Retirement Health Savings plan and several other investment and benefit plans, according to draft minutes of the July 25 investment subcommittee meeting.
Oakland County also has a frozen defined benefit plan with about $700 million in assets.