Searches and Hires

St. Louis Sewer District taps Aon Hewitt as consultant for DB, DC plans

Metropolitan St. Louis Sewer District hired Aon Hewitt Investment Consulting as investment consultant for its $278 million defined benefit plan, $64 million 457 plan and $7 million 401(a) plan, said Tim R. Snoke, secretary-treasurer, in an email.

The sewer district issued the RFP in May because current consultant Pavilion Advisory Group's contract will expire Sept. 30. The firm did rebid for the services. Ellwood Associates and RVK were the other finalists with Aon Hewitt.

Mr. Snoke added that Mercer's purchase of Pavilion Advisory Group will not affect the plans, as the firm's contract will expire before the closing of that transaction.

The pension plan's actual allocation as of Dec. 31 was 42.1% equities, 35.6% fixed income, 12.9% hedge funds, 8.8% real estate and 0.6% cash.

The 457 plan's actual allocation as of that same date was 47.3% domestic equities, 25.5% target-date funds, 17.5% fixed income, 5.3% international equities, and 2.2% each loan fund and money market fund. The plan has 11 investment options and a target-date fund lineup, all managed by Vanguard Group.

Also as of Dec. 31, the 401(a) plan's asset allocation was 78.9% target-date funds, 13.7% domestic equities, 4.6% fixed income, 2.3% international equities and 0.5% money market fund. The plan has 10 investment options and a target-date fund lineup, also all managed by Vanguard.