Central States Southeast & South-west Areas Pension Fund, Rosemont, Ill., could begin a search soon for a second named fiduciary for its $18.2 billion Teamsters-related pension fund, pending a court motion. Morgan Stanley & Co. is now the sole named fiduciary.
The DOL is supporting a motion in U.S. District Court by the fund's trustees seeking the second named fiduciary, which has the authority to allocate assets and hire and fire managers.
Judge James B. Moran could rule Tuesday on the motion. If it's approved, the fund will seek bids by July 1 for the second named fiduciary. The fund hasn't yet decided how it would split the assets between the second named fiduciary, which it hopes to hire by Oct. 1, and Morgan Stanley.
In 1999, it will rebid for the named fiduciary position now held by Morgan Stanley, whose contract expires then.