City of Los Angeles Board of Deferred Compensation Administration decided to begin a new request for proposals process for defined contribution administrators and investment managers as part of a restructuring of its $1.1 billion plan, said Steven Montagna, the agency's management analyst.
In May, the board decided to restructure the plan and canceled an outstanding RFP. That request for proposals was open-ended and did not specify whether the program should be integrated or bundled.
The board also decided to shift from two administrators to one to simplify the process and allow the agency to add more options to the plan. The new RFP is expected to include requests for record keeping and discount brokerage window capabilities. Hartford Life and Washington Mutual are the current administrators of the 29-option 457 plan.
Under the restructuring, the board intends to reduce the number of core options. Also, it will add a passively managed fund and an actively managed fund in each of the following categories: large-cap, small-cap, international equities, domestic fixed income, an FDIC savings-account-type fund and a fixed account/stable-value fund, Mr. Montagna said. The agency also will add a discount brokerage window to expand the options available to participants.
The board is expected to review the new RFPs next month and release them in September, Mr. Montagna said. William M. Mercer is the consultant.