IBEW Local 369, Louisville, Ky., suspended its decision to hire Putnam as bundled provider of its $120 million defined contribution plan, said a plan official who asked not to be identified. Putnam was selected last year, following a search, but no contract was signed because of the market-timing charges against the firm. Trustees now are waiting to see if the firm "gains back public confidence," the official said. No timeframe has been set for either proceeding with the hire or re-examining other candidates in the search. Segal Advisors is assisting.
The plan is currently trustee-directed and managed by AMVESCAP. Trustees decided to shift the plan to participant direction, following investment losses for two of the past three years, the official said.
"We believe the initiatives which we've recently undertaken to earn back investor trust will be a benefit over the long term," said Laura McNamara, Putnam spokeswoman.