Rep. Earl Pomeroy, D-N.D., is working on a bill that would make defined benefit plans simple and less costly to administer.
The bill, which he plans to introduce in March or April, should deal with administrative complexities, including non-discrimination requirements for defined benefit plans. Mr. Pomeroy told Pensions & Investments last year that he considered encouraging defined benefit plan growth a legislative priority.
Separately, Mr. Pomeroy expects to reintroduce a bill next month that would establish a federal commission on retirement savings. He and Rep. Nancy Johnson, R-Conn., first introduced that measure last year.
Iron Workers, Mid-American Pension Fund, Lansing, Ill., has split its $458 million pension fund into two separate plans. The plan had been a hybrid plan for the past 25 years, but now is officially split into a defined benefit and a defined contribution plan, said Joseph Burke, administrator.
The defined benefit plan, Iron Workers Mid-American Pension Fund, will have $175 million; the defined contribution plan, the Supplemental Monthly Annuity Fund, will have $283 million in assets. Employees will contribute to both plans in different percentages based on which of the 12 local unions they belong to. No new managers are expected to be hired.
Separately, Mellon Trust was chosen to replace Northern Trust as custodian. Mellon will serve both plans. Marco Consulting assisted.
Voyageur Cos., which is exiting the retail mutual fund business, is considering offering mutual funds for institutional investors based on the investment styles managed by the institutional side of its business.
John G. Taft, Voyageur president and chief executive officer, said the company wants to add a mutual fund delivery mechanism to its existing commingled and separate account capabilities. Voyageur's four subsidiaries - Voyageur Asset Management; Clifton Group; Segall Bryant & Hamill; and Voyageur International Asset Managers - would manage the institutional mutual funds.
Voyageur announced plans to sell its retail fund products, which have $2.8 billion under management, to Lincoln National this year.
Charles Machine Works Inc., Perry, Okla., hired one manager and increased the assignment of another for its $75 million combined profit-sharing and ESOP plan, said Michael Stodola, manager-accounting and trust administration. PaineWebber was hired for a $10 million balanced portfolio. Goldman Sachs was given an additional $6 million, bringing its total assignment to $11 million, also for a balanced portfolio. Funding came from Massachusetts Mutual and Diversified Investment Advisors, which were dropped.
New York City Deferred Compensation Plan hired Morgan Grenfell Asset Management to run $10 million in an intermediate-term bond fund. The $2 billion plan hired the firm to replace Vanguard, whose contract expires June 30, said Lou Porpora, contract supervisor and operations manager. Vanguard took part in the search, but was not one of the three finalists selected. Mercer assisted.
The Philadelphia Municipal Pension Fund hired Dwight Asset Management to run the roughly $125 million stable value option in the city's $175 million 457 plan. The option had been internally managed.
J&L Specialty Products Corp., Pittsburgh, has added five options to both its 401(k) plan for hourly workers and its defined contribution plan for salaried workers. T. Rowe Price is the bundled provider for the plans, which have a combined $35.5 million in assets, and will manage the new options.
Added were: The Science and Technology Fund, a sector-based equity fund; New Horizons fund, a mid- and small-cap fund; the Small-Cap Fund; Spectrum Growth and Value Fund, an equity funds of funds; and the Spectrum Income Fund, a fixed-income fund of funds. The funds now have 11 options.
Neil M. Grossman was named vice president of legal and regulatory affairs and Vicki Hart was named manager of legislative affairs at the Association of Private Pension and Welfare Plans. Both positions are new.
Mr. Grossman had been vice president and national director of legislation and legal research at WF Coroon; his position was eliminated when Coroon was acquired by Buck Consulting. Ms. Hart was special assistant on health policy to Sen. Trent Lott, R-Miss., and former Sen. Bob Dole, R-Kan.
Erik Voss and Nicholas Truitt were hired by Conseco Capital Management for its equity management team. Both are filling the newly created positions of senior securities analysts/assistant portfolio managers to aid in the management of Conseco's new equity mutual funds. Mr. Voss was an analyst for Gardner Lewis. Mr. Truitt was an analyst at T. Rowe Price Associates where he provided research support for the New Horizons Fund