Idaho Public Employee Retirement System’s board on Tuesday will choose investment options and money managers for a new, unbundled 401(k) plan available to all system participants, said Alan Winkle, executive director for the Boise-based system. System officials plan to launch the Choice plan on May 1. It will have 11 investment options.
In the third quarter, officials plan to merge the Choice plan with the state’s existing $20 million 401(k) plan, the Super Saver plan, which is available only to state employees. Zurich Scudder is bundled provider for the Super Saver plan.
The new Choice plan was created by the state legislature in April. It is part of Idaho’s "gain-sharing” program, under which active employees receive money deposited into their Choice 401(k) accounts from the system’s defined benefit plan when it is overfunded.
A bill that passed the Idaho House on Feb. 7 and is awaiting hearing in the Senate would expand the Choice 401(k) to allow all system members to participate. Currently, only members who were eligible for gain sharing are permitted to contribute to the new 401(k) plan, Mr. Winkle said.
