PBGC liability up 39.5%
The PBGC's unfunded liability grew 39.5% to $53 billion in 1992, largely because of a fall in interest rates, coupled with companies' inability to keep up with mounting liabilities.
California names finalists
The $80 billion California Public Employees' Retirement System announced five finalists for general consultant: William M. Mercer; Pension Consulting Alliance; Callan; Rogers, Casey; and Wilshire, the incumbent. A decision will be made Jan. 20. The winner will receive a three-year contract with, possibly, two one-year options.
Regan to leave fund
George Regan, director of equity management at the $26.7 billion Teacher Retirement System of Texas, will retire effective Jan. 14.
John Young, chief investment officer, said he expects to fill Mr. Regan's position during the first quarter. The equity director oversees an $18 billion portfolio.
GE, State Street team up
GE Investments and State Street Bank have joined forces to provide bundled 401(k) plan services, targeted at plans with more than 1,000 participants.
GE Investment Services will provide five actively managed, daily valued mutual funds. GE also will provide participant investment education, customer support and employee communications. State Street will serve as record keeper, custodian and transfer agent for the funds and will provide an automated voice-response system.
Air Force fund taps Wells
The $156 million U.S. Air Force Non-appropriated Fund
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Employee Retirement Plan hired Wells Fargo Nikko to manage $117 million in four index funds.
Michigan 457 hires Putnam
The $1.3 billion Michigan Deferred Compensation Plan hired Putnam Investments to offer seven daily valued mutual funds.
Until now, the fund has been invested entirely in GIC funds, which officials want to reduce.
The state also added three Fidelity mutual funds to its $200 million 401(k) plan.
Plan adds 4 mutual funds
The nearly $2 billion deferred compensation plan offered through the National Association of Counties added four mutual funds, one from Twentieth Century and three from Fidelity.
Three were dropped because of performance: Evergreen Total Return; MFS Growth Opportunity; and Nationwide Investing Foundation Growth.
Kwasha Partner resigns
R.T. Whitman, a partner with employee benefits consultant Kwasha Lipton, resigned. Mr. Whitman, who said he is pursuing other related business opportunities, had responsibilities for new product development and institutional marketing. Spokesman Ted Barna said he won't be replaced.
San Diego trustee joins NCM
Victor Ross, former trustee of the San Diego City Employees Retirement System, was named vice president of NCM Capital Management Group. He will head a new NCM office in San Diego.
Elliott leaves Callan
Scott M. Elliott, manager of quantitative consulting for Callan Associates, will join Wellington Management to work in quantitative research. Jim Van Huiet, vice president, will take over Mr. Elliott's Callan duties.
Dickson joins Mercer
John M. Dickson joined William M. Mercer, where he will head up the regional asset planning practice in Atlanta. He had been a managing director in SEI's Atlanta office.