New York Citys Deferred Compensation Plan, with $4.4 billion in assets, hired Domini Investments to run its $190 million socially responsible investment fund, said Dean Weltman, counsel. The 457 plan selected Domini to replace Citizens Funds because fund officials wanted an index fund; Citizens is actively managed, said Mr. Weltman.
Separately, the city will begin offering a 401(k) plan Jan. 1 to 450,000 participants. A law passed last year allows certain city employees who werent allowed to participate in the 457 plan to be eligible for the 401(k) plan. Those include employees of the New York City Board of Education and the Health and Hospital Corp. The 401(k) plan will offer the same seven options as the 457 plan. Those in the 457 plan also will be able to participate in the 401(k) plan, Mr. Weltman said.