American Council of Life Insurers, Washington, hired Ernst & Young as investment consultant for its new cash balance plan, and it retained Prudential Investments as investment manager, said Joanne Daly, vice president of benefits. Prudential managed all the assets of the council’s now-terminated $60 million defined benefit plan; a $9 million surplus will fund the new cash balance plan.
The trade association also dropped its 2% allocation to real estate and shifted it to domestic bonds. The new asset allocation is 50% domestic equity, 5% international equity and 45% domestic bonds.
