Federal Retirement Thrift Investment Board expects by the end of next month to select an investment consultant to review the indexes used for four of the five separate-account investment options in the $163.8 billion Thrift Savings Plan, Washington, said Tom Trabucco, spokesman. The consultant also will examine whether the plan should invest in real estate, as recommended by Rep. Jon Porter, R-Nev., chairman of the House Federal Workforce and Agency Organization Subcommittee. Mortgage-backed securities already comprise 37% of the plan's "F" fund index, and REIT investments make up 8% of the "S" fund index.
The index review will be followed by a routine search for managers for the four funds. Contracts with the current managers expire in April 2006, Mr. Trabucco said.
The four indexes currently used by the retirement plan are the S&P 500 index for the "C" fund, the Lehman Brothers Aggregate Bond index for the "F" fund, the Wilshire 4500 index for the "S" fund, and the MSCI EAFE index for the "I" fund. The "G" fund is invested in government securities.
Separately, plan participants have already moved $2.8 billion into the plan's new lifecycle funds, which were rolled out at the beginning of August, Mr. Trabucco said.