City of Los Angeles Board of Deferred Compensation Administration voted Tuesday to cancel its RFP for a plan administrator and issue two more narrowly drafted RFPs, one for an administrator and one for investment managers. The RFPs will be drafted to conform with criteria developed at the board's May meeting, said Steven Montagna, management analyst for the $1.1 billion 457 plan.
The board decided the plan should: include a broad-universe brokerage window option; administer current funds without triggering surrender charges; have one fund in which costs would not exceed those of the Vanguard Institutional Index Fund, the lowest-cost fund offered by the plan; identify record-keeping fees independent of investment management fees; and offer one actively managed and one indexed fund in each of four categories.
The plan has two administrators: Hartford Life and Washington Mutual. Both provide record keeping, investment and communications services. The board decided to hire a single administrator to make it easier for plan participants to access information from one source, Mr. Montagna said.
William M. Mercer is assisting the fund.