CalPERS plans to use more of its own funds in its $480 million 457 plan. Officials at the $200.2 billion California Public Employees' Retirement System, Sacramento, plan to review the defined contribution plan's investment options and see where there are opportunities to supplement or replace existing funds with CalPERS-managed funds, Dave Mullins, chief, supplemental savings program, told the board on Monday. In particular, the 457 plan may seek to use CalPERS' strong-performing fixed-income funds as low-cost options.
Currently, the 457 plan offers 11 core investment options, an FDIC-backed money market fund, certificates of deposit, and a self-managed brokerage window. Details will be spelled out in an RFP expected to be issued in January. State Street Global Advisors manages seven core options: an actively managed large-cap fund; a Russell 2000 index fund; three asset allocation funds; an international equity fund; and a stable fixed-income fund. CalPERS runs a bond fund, a money market fund and an S&P 500 index fund. Brown Capital runs an actively managed U.S. small-cap stock fund.
In addition, the 457 plan plans to look for a third-party administrator in January. Its current contract with CitiStreet expires on June 30.