Iowa Department of Personnel, Des Moines, added a 401(a) plan that will be funded in April. Plan officials wanted a vehicle for contributing employer match money that will not reduce the employees’ maximum contribution limit, said Robbie Stoecker, retirement benefits officer. It will give employers tax advantages and allow portability of qualified money, she added.
Trustees also revamped the $225 million 457 plan, reducing it to about 100 options offered by four providers from more than 200 investment options offered by 11 providers; the same options will be offered in the 401(a), she said. The plan retained service providers Aetna, Equitable Life Assurance, Hartford Life and VALIC/American General; cut from the plan were Equitable Life Insurance of Iowa, Farm Bureau Financial Services, Great West, MassMutual, Nationwide Retirement Solutions, New England Financial and PFL Life Insurance. The new investment options have lower daily net asset fees, no surrender charges and no annual contract fees, Ms. Stoecker said.
Record-keeping, administration and trustee duties are all handled in-house, she said.