The IRS issued a private letter ruling Friday allowing Travelers Group Inc. to deduct the value of stock options it contributes to its profit-sharing/401(k) plan.
Labor Department officials expect to issue Travelers an exemption letter from ERISA prohibited transaction regulations by the end of March, clearing the way for the company to contribute stock options in its 401(k) plan.
In addition, a Travelers official said the company received several inquiries from large employers - including IBM Corp., GTE and Lucent Technologies - seeking information about the stock option contribution.
The Washington State Board of Investment, Olympia, is reviewing its entire domestic equity program, said Nancy Calkins, senior investment officer for equity and program management.
Manager searches could begin by late summer for the $37 billion fund. One passive and three active managers currently run the $12.5 billion equity component. Wilshire Associates is assisting.
Indiana State Teachers' Retirement Fund trustees, Indianapolis, are close to picking a consultant to help manage the $3.5 billion fund's transition into equities, which will include an asset allocation study and manager searches. Robert Newland, investment officer, said the consultant also will help set up a monitoring system for the fund.
Four finalists Mr. Newland declined to name will make presentations on Thursday. The consultant will be hired initially on a long-term project basis but could become a retainer consultant.
The fund also hired Seix Investment Advisors to run $25 million to $30 million in core fixed income, replacing Alpha Capital, which was terminated last year.
OTC derivatives positions grew 37% in 1996, according to preliminary data compiled for the International Swaps and Derivatives Association.
Outstanding privately negotiated contracts in interest rate swaps, currency swaps and interest rate options carried a notional market value of $24.3 trillion as of Dec. 31, up substantially from 1995's $17.7 trillion, according to an ISDA statement released from its annual meeting in Sydney. The numbers were culled from ISDA members, mainly OTC dealers, by Arthur Anderson.