The House's attempt to strip TIAA-CREF of its tax-exempt status survived negotiations by the congressional conference committee. The provision is part of the big tax bill the lawmakers are negotiating with the Clinton administration.
Republican lawmakers also agreed to include a provision limiting investments by defined contribution retirement plans in employer stock and employer property, as well as to make it easier for employers to claim workers as independent contractors, rather than as full-time employees. The lawmakers dropped a Senate provision requiring plan participants to obtain spousal consent for dipping into 401(k) plan money. And union pension plans lost out on a provision that would hav lifted limits on employee contributions to retirement plans.
Lukens INc., Coatesville, Pa., is planning to do an asset allocation study toward the end of the year for its $400 million pension fund, its first fstudy in three of four years, said Barbara L. Gasper, assistant treasurer.
"Maybe some changes will come out of that," she said.
The fund's current allocation is 60% equities and 40% bonds and cash.
District of Columbia Retirement Board with $4.4 billion in assets, is considering doubling or tripling its 5% allocation to small minority money managers and is conducting a survey to help it determine whether such firms do indeed face discrimination, said Berna Gunn-Williams, chairwoman.
There are no plans to take money from any existing managers, but the board might fund the increased allocation with assets freed up as a result of a rebalancing or if terminations occur because of poor performance.
The board's "disparity study," which includes firms owned or run by women that are not on the pension fund's farm team, will be completed around year-end, she said. The pension fund also is studying minority brokerage firms. Fidelity Investment Solutions is conducting the study.
Houston Police Retirement System hired Abbott Capital Management as special consultant to design an alternative investment class program. Abbott will prepare an alternative investment approach, including suggested investment classes and procedures for implementing alternative investments. John Lasson, executive director, said the $1.51 billion fund has a target range of up to 10% for alternatives. The program is expected to be presented to the board by the end of the year, he said.
AlliedSignal Inc., Morristown, N.J. added an international stock fund, small-cap stock fund and three lifestyle portfolios to its $3.5 billion savings plan. All are provided by State Street Bank. The plan now has 11 options from a variety of providers. The company chose the options based on feedback from employees, said Tom Sanford, a company spokesman.
Pennsylvania Public School Employes' Retirement System, Harrisburg, hired Aberdeen America, roll& Ross Asset Management and Bay Isle Financial to each manage $15 million for the $39 billion fund.
Aberdeen will manage a core equity portfolio; the other two firms will run value equity portfolios. The firms will be part of the system's developmental portfolio, which is run by emerging or minority managers and is about 1% of the fund. The funding will come cash. The search was conducted in-house.
International Union of Elevator Constructors, newtown Square, Pa., hired Barnett Capital Advisors to run a $50 million small-cap growth equity portfolio for its $3 billion pension fund SEI Capital Resources assisted.
West Virginia University Foundation Inc., Morgantown, hired Endowment Advisors for its $200 million endowment fund's first move to alternative investments, said R. Craig Walker, vice president-finance and administration and treasurer. It committed $4 million each to venture capital and domestic private equity international private equity funds offered by the manager. Funding will come from cash flow and a reallocation. Morgan Keegan assist.
Pennsylvania State Employes' Retirement System, Harrisburg, allocated up to $25 million to Healthcare Ventures V, a private equity fund that will invest in emerging health care trends, confirmed a retirement system spokesman. The allocation will be funded from cash, said the spokesman for the $19 billion system. Cambridge Associates assisted.
Conagra Inc., Omaha, Neb., hired Vanguard to provide an international active groeth equities fund for its $1 billion 401(k) plan, said Douglas Fehr, manager-short-term funding. The fund brings to seven the number of investment choices from several managers.
Colorado Public Employees' Retirement Association, Denver, added Capital Guardian's Eurofacific Growth Fund and Northern Trust's money market fund as options in its $204 million 401(k) plan. The fund now has seven options.