Wisconsin Department of Employee Trust Funds, Madison, is preparing an RFP for a mutual fund window for its $800 million deferred compensation plan, according to Mary E. Willet, director of supplemental retirement plans.
The anticipated move is part of a new overall design dividing the plan into three tiers. Each layer is geared toward a different type of investor, Ms. Willet said. The first tier is an asset allocation service in which a participant selects a model and the portfolio is automatically rebalanced every quarter. The second tier is the current menu of 14 core options.
The mutual fund window would be the third tier and is aimed at the more sophisticated investor. It's expected to offer a broad spectrum of anywhere from 200 to 3,000 mutual funds, she said. Users will be charged separate fees.
The board is scheduled to vote on the RFP next month. The window should be in place by mid-1999, she added.