Los Angeles Superior Court has rejected a bid by Nationwide Retirement Solutions to be named administrator of the $1.8 billion City of Los Angeles Deferred Compensation Plan, said Steven Montagna, senior personnel analyst. Executives of the 457(b) plan awarded the contract to Nationwide last year, but the Los Angeles City Council later vetoed the decision. Nationwide filed suit and asked the court for a temporary restraining order, which the court denied, leading to Tuesday's attempt for a preliminary injunction.
Great-West will continue to administer the plan pending the launch of a new RFP. Great-West was the incumbent record keeper when the board selected Nationwide, overriding a staff recommendation to re-hire Great-West.
"Nationwide continues to feel that its offering originally selected by the DC board is the most advantageous to the participants," said Erica Lewis, Nationwide spokeswoman. "Naturally, we are disappointed with the decision. However, it is important to note the court found that our case had merit, but ultimately decided the city could reissue the RFP if they chose. If the RFP process must be repeated, Nationwide plans to participate."