Indiana Public Employees' Retirement Fund, officials are considering hiring one or more firms to provide investment management and record-keeping services for its $2.39 billion 457 annuity savings account and $18.8 million legislators' defined contribution plan. The change would be made to reduce costs.
PERF officials are considering allowing the record keepers to manage some or all of each plan's six investment options, excluding two: a guaranteed fund whose rate is set by PERF trustees and a diversified fund that uses PERF defined benefit managers and whose allocation is set by PERF trustees, according to the RFP. They could hire separate record keepers for each plan or one combined record keeper, according to the fund's RFP. Currently, 86% of ASA assets are invested in the guaranteed fund.
The Indianapolis-based fund is considering adding static allocation lifestyle or dynamic allocation lifecycle funds, or both, according to the RFP. Fund officials are likely to add other investment options in the future, although details weren't available.
"We think our members will demand more options," said Jeffry S. Carter, director-external affairs. "Our younger members are less risk averse."
The record keeper for the legislators' plan, which already has daily valuation, is Great West, whose contract is expiring, he said. Great West will be permitted to rebid, he added.