The $34 billion Washington State Investment Board, Olympia, will be the initial manager of the defined contribution component of a new retirement plan for the state's teachers that begins July 1.
State officials had selected State Street Bank to run an index fund for the new plan and tapped ICMA to be administrator. But before a contract could be signed with State Street, the hiring was nullified by the Joint Committee on Pension Policy of the state Legislature. The joint committee wanted assets to be invested with the investment board in the same manner as the board invests its other assets. A bill put this position into law this year. ICMA remains administrator.
The plan, a joint defined contribution plan and a defined benefit plan, will be mandatory for all new teachers hired after July 1 and an option for current members of the teachers' retirement systems plan two.
A new board will be able to add additional options to the 401(a) plan; the state investment board will continue as an option, said Sheryl Wilson, director of the state's Department of Retirement Systems and chair of the investment board.
