Illinois State Universities Retirement System, Champaign, is in discussions with one of its bundled providers, ING Retirement Services, about changing its investment choices and fees for the systems $134 million 401(a) plan, said John R. Krimmel, CIO. ING officials have told SURS officials the firm isnt earning enough to cover the cost of the services and could ultimately terminate its relationship with the system. ING has 18% of the plans assets. TIAA-CREF and Fidelity are the other two bundled providers in the plan.
Mr. Krimmel said system officials want to work with ING on revamping its choices and avoid the costly process of initiating a search.
"We are in discussions about changes that provide enhancements for both parties, said Philip Margolis, director-external communications, ING U.S. Financial Services. He declined to comment further.