State of Colorados $360 million 457 deferred compensation plan selected Great West Life as its new record keeper, marketer and self-directed brokerage account provider for the unbundled plan, effective in June or July.
The other finalists were ICMA Retirement and Nationwide, said Jack Ehnes, state director of risk management and employee benefits. Incumbent Security First Group did not compete, he said.
The plan may make some other hiring and policy changes this year in anticipation of adding employer matches for the states 401(k), 403(b) and 457 plans. A new 401(a) plan passed by the Legislature this session is expected to be in place by Jan. 1 to accept the match for the 457 plan participants.
This summer, the Deferred Compensation Committee, which runs the Denver-based 457 plan, should decide whether the self-directed brokerage account provided by Great West Life through DLJ Direct will include only mutual funds or mutual funds and individual stocks, he said. The committee also will review the plans investment policy and current list of 12 investment options to decide whether to add funds once the plan is converted to Great West Life.
The current menu of investment options includes a stable-value and two certificates by Great West Life; Vanguards money market fund, equity index fund and total bond market index; Fidelity Investments Puritan fund; INVESCOs equity income fund and Dynamics fund; American Centurys Ultra fund; and T. Rowe Prices New America Growth fund and international fund.