Texas Employees Retirement System, Austin, terminated Waddell & Reed as an investment provider for its 457 deferred compensation program, according to a letter to members posted on the $19.9 billion system's website, www.ers.state.tx.us. Mary Jane Wardlow, spokeswoman for the fund, said the action was part of its long-term transition of those 457 plan accounts to its Texa$aver program. She said the 457 program has 13,881 participants and $246 million in assets. Program participants have until July 16 to transfer out of Waddell & Reed; those who take no action will have their assets transferred to the Vanguard Wellington Fund, one of the investments available through the Texa$aver program.
The Texa$aver program includes nine mutual funds, a stable value account and the Charles Schwab Personal Choice Retirement Account. CitiStreet is third-party administrator.
Andy Mohn, vice president and director of marketing at Waddell & Reed, declined to comment.