Chicago Public Schools re-structured the 403(b) plan for employees, and the number of vendors serving the $1.2 billion plan was reduced to two from six. Selected were Prudential Investments and VALIC, a spokeswoman said.
Prudential will offer the employees fixed annuities and mutual funds; VALIC will offer fixed and variable annuities, said the spokeswoman. The companies that previously provided retirement services will continue to serve current clients, but will not be able to sign up new ones. Those vendors are Equitable, Great West, MetLife, Security Benefit Life, Travelers and a Chicago-area Kemper affiliate.
The restructuring will save the plan an estimated $9 million. Consultant KPMG Peat Marwick assisted.
