Columbia/HCA Healthcare Corp., Nashville, is reviewing the plan structure in its $2.3 billion 401(k) plan. Kim Sharp, director of retirement and savings, said Columbia plans to add a series of life cycle funds next spring.
The company also is actively considering adding a company stock investment option, she said. About 36% of the plan assets already are invested in company stock that was rolled into the plan from an ESOP, but the plan is not accepting contributions or transfers into that segment. The plan now offers five options - an income fund, balanced fund, large-company stock fund, small-company stock fund and an international equity fund - each managed by outside managers.
State Loan and Investment Board, Cheyenne, Wyo., will select a new asset mix for the $3.2 billion fund, following recommendations from consultant R.V. Kuhns.
The board, which meets Sept. 4, is expected to decide whether to expand the fund's equity exposure beyond current large-cap stock allocations, said Steve Degenfelder, deputy director. The fund has $40 million to $50 million in equities, with the rest of its assets in bonds.
The Labor Department is advising corporate and union pension plans that a provision in the new tax law letting them off the hook for filing certain paperwork periodically will be effective retroactively.
President Clinton on Aug. 5 signed the Taxpayer Relief Act of 1997, which exempts pension plans regulated by federal law from periodically filing documents with the Labor Department describing the plans, how they work and any recent changes. Labor Department officials now say pension plan administrators can stop filing those documents even if the changes occurred before Aug. 5.
Plan administrators still must provide summary plan documents and details of any plan changes to workers and beneficiaries.
CORRECTION: District of Columbia Retirement Board probably will conduct an asset allocation study to decide how to invest the money that will remain after the federal government takes over most of its assets. But fund officials have not yet made that determination. Yesterday's P&I Daily incorrectly reported the decision has been made.
University of South Florida Foundation, Tampa, with $128 million in endowment assets, decided to move $9 million in stock and bond indexed assets to The Common Fund, said John Scott, CFO.
The Common Fund already received $5 million from a portfolio managed by Bankers Trust, which managed against the S&P 500, while State Street Bank will lose a $9 million portfolio managed against the Lehman Brothers aggregate. Performance was about the same, but the fees offered by The Common Fund were lower, Mr. Scott said.