American Council of Life Insurers, Washington, hired Ernst & Young as investment consultant for its new cash balance plan, pending approval by the plan’s fiduciary committee at its Oct. 13 meeting, according to Joanne Daly, vice president of benefits. ACLI is terminating its $60 million defined benefit plan and starting the cash balance plan, pending IRS approval, and also will increase the employer contribution to its $35 million 401(k) plan.
Prudential Investments managed the plan’s defined benefit assets, which were split evenly between stocks and bonds. ACLI may search for other external managers to handle some of the cash balance plan assets, based on recommendations from Ernst & Young, she said; plan officials have not yet made any decisions on how to invest the assets.
